Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Zenith - One and Only -- Ignore unavailable to you. Want to Upgrade?

To: Robert Utne who wrote (3325)	10/28/1997 9:50:00 AM
From: Robert Utne	Read Replies (3) \| Respond to of 6570

GLENVIEW, Ill., Oct. 28 /PRNewswire/ -- Zenith Electronics Corporation (NYSE: ZE) today reported a third-quarter 1997 net loss of $69.2 million or $1.04 per share, compared with a net loss of $40.2 million or 61 cents per share for the third quarter of 1996. Total third-quarter sales were $305 million in 1997 and $341 million in 1996. More than half of the 1997 third-quarter loss resulted from charges for bad debts, inventory revaluation and merchandising programs, as well as one-time charges related to the phase out of Zenith's printed circuit board operation. Operating results for the 1997 third quarter suffered from a $36 million decline in sales compared with the same 1996 period. However, Zenith President and CEO Peter S. Willmott said the company continues to make "progress in controlling costs and improving its distribution and logistics systems." Consumer Electronics revenues declined in the 1997 quarter compared with the same period last year, driven largely by lower VCR sales. Because of picture tube availability problems, Zenith's domestic direct-view color television unit sales declined slightly compared with the 1996 quarter, but Zenith gained market share in key large-screen categories. Zenith's projection TV sales were up in the quarter. Willmott said, "Shipping problems affecting sales are being addressed, and orders for Zenith's new color TV line are strong as we enter the traditionally stronger fourth-quarter selling season." In addition, the company continues to prepare for the launch of digital high-definition television (HDTV) in 1998, he said. Network Systems revenues were down in the third quarter compared with a year ago as sales of analog set-top boxes declined. Industry and Zenith shipments of cable modems, while still relatively small, rose in the 1997 quarter. In the third quarter, Zenith Network Systems and News Corporation announced agreements for Zenith to provide digital set-top boxes for satellite-delivered video programming in Latin America and elsewhere around the world beginning in 1998. As planned, Zenith also began production of digital set-top boxes for the Americast programming venture during the quarter. For the first nine months of 1997, Zenith reported a net loss of $143.7 million, or $2.16 per share, compared with a net loss of $108.7 million, or $1.67 per share for the nine months a year ago. Nine-month sales were $825 million in 1997 and $860 million in 1996. The company said it has amended its existing credit agreement to relax certain covenants and is continuing to seek additional financing to support its turnaround plans. ------------------------------------------------------------------- Finally, the last shoe has dropped. About $30 million more in the red than I expected due to the above stated "excuses".

To: Robert Utne who wrote (3325)	10/28/1997 2:12:00 PM
From: Mark L.	Respond to of 6570

"Imagine a hot film coming out and Divx owners getting to rent it two weeks prior to official release." If Circuit City is serious about this, then they will lose Paramount as one of the DIVX supporters--unless they have convinced Eric Doctorow and Redstone that the rentals will not come at Blockbuster's expense. I'm having a tough time understanding Sharp's thinking. DIVX is on shaky ground and needs all the support it can get. They aren't going to get Sony's or Warner's support until it's unambiguous that this thing is a home run. The last thing they need is to lose Paramount. This is all so evident that I think there must be something going on behind the scenes that I just can't grasp at the moment.