MSU Corp., an Internet Set-Top BoxCompany, Reports Second Quarter/Six-Months Results, Continues BalanceSheet Improvements
February 2, 1999 08:31 AM
MILTON KEYNES, England--(BUSINESS WIRE)--Feb. 2, 1999--
$3.1M of Loans and Notes Paid Off and Converted to Equity
MSU Corporation MUCP , a manufacturer and marketer of Internet-access set-top boxes, today announced results for the second fiscal quarter and six months ended December 31, 1998.
The company reported an operating loss of $732,967 for its second fiscal quarter, compared with an operating loss of $1,076,330 for the comparable quarter last year. The net loss for the second quarter of fiscal 1999 was $730,845, or three cents per share, diluted, on 18,429,233 weighted average diluted shares outstanding, versus a net loss of $1,075,855, or nine cents per diluted share on 16,131,000 weighted average diluted shares outstanding for the same period of the prior fiscal year. Revenues for fiscal 1999's second quarter were $7,250, versus $8,719 for the prior fiscal year's second quarter.
For the six months ended Dec. 31, 1998, the company reported a net loss of $1,318,754, or eight cents per diluted share on 17,509,735 weighted average diluted shares outstanding, compared with a net loss of $1,997,888, or 12 cents per diluted share on 16,078,000 weighted average diluted shares outstanding, for the first six months of fiscal 1998. Operating loss for fiscal 1999's first six months was $1,321,415 versus $2,002,442 for the same period of fiscal 1998. Revenues for the six months ended Dec. 31, 1998, were $9,808, compared with $9,423 for the like period of the prior year.
The company stated that TXC, a Taiwanese corporation with an outstanding $1.4 million loan to MSU, has converted the loan to equity at $1 per share. Additionally, $1.7 million of note holders debt was also paid off and converted to equity.
Wyn Holloway, chairman of MSU Corporation, commented, "MSU made a number of improvements to its balance sheet in the first six months of fiscal 1999. We reduced our total current liabilities to $1,811,812 as of Dec. 31, 1998 - a 61 percent decrease. We also significantly improved total shareholders' equity, which were $424,128 as of December 31, 1998, versus a deficit of $2,073,524 at June 30, 1998. A further conversion of outstanding loan notes should allow us to continue these improvements.
"We believe fiscal 1999 will be a very important year for us. We are continuing to develop our ISP chip which will enable us to offer enhanced Internet features and the lowest cost internet access device in the industry. Our latest production version will be ready for shipment in April.
"Our business strategy is beginning to bear fruit world wide as evidenced by the increase of interest in our Internet Access Device (IAD) from many corporations.
We can now make our products available in volume at around $140/150 including the infra-red keyboard. Whilst our competitors continue to add features and cost, we firmly believe that the future belongs in supplying cost effective products that open up new applications and services. We are continuing work on the chipset and other enhancements that will enable us to bring the ownership cost down even further by the end of 1999," Holloway concluded.
MSU Corporation designs and develops computer chips and chip sets principally for use in consumer electronic products. Most of the company's chips are capable of multiple functions and eliminate the need for additional chips. Moreover, they diminish the risk of malfunction and error, permit more efficient circuit-board designs and are available at a low cost. In addition to computer chips, MSU develops consumer electronic products and reference platforms for itself and other companies. Its SlipStream Internet access technology enables anyone with a television and regular telephone line to access the Internet and send and receive e-mail. And when used with MSU's customized, proprietary browser, SlipStream allows users in Germany, France, Italy, Poland, Portugal, China and English- and Spanish-speaking countries to access and interact with foreign web sites in their native language. The SlipStream technology is also manufactured and marketed in a TV set-top box. MSU also offer custom services in chip design, hardware and operating-system development, computer peripheral-design development and application-software development, consulting and sourcing. For more information, visit MSU Corporation's web site at www.msu.co.uk.
MSU CORPORATION
Financial Highlights (Unaudited)
For the Three Months Ended For the Six Months Ended
12/31/98 12/31/97 12/31/98 12/31/97
Revenues $7,250 $8,719 $9,808 $9,423
Operating loss (732,967) (1,076,330) (1,321,415) (2,002,442)
Net loss (730,845) (1,075,855) (1,318,754) (1,997,888)
Loss per share:
Basic $(.03) $(.09) $(.08) $(.12)
Diluted $(.03) $(.09) $(.08) $(.12)
Weighted average
shares
outstanding:
Basic 18,429,233 16,131,000 17,509,735 16,078,000
Diluted 18,429,233 16,131,000 17,509,735 16,078,000
This release contains forward-looking statements which are based on current information available to management and which are subject to other important factors disclosed from time to time in the company Form 10-K and Form 10-Q, Registration Statements and other Securities and Exchange Commission filings, including specifically, among other factors, changing market and economic conditions.
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