Financial: Truevision Q1 Results - Company Financial Information

Edge: Work-Group Computing Report, Oct 26, 1998

Truevision, Inc. (Nasdaq:TRUV) Tuesday announced financial results for the first fiscal quarter ended Sept. 26, 1998.

Net sales for the first quarter were $7.5 million, compared with $10.1 million for the same period of the prior year and $8.7 million for the prior quarter. The net loss for the first quarter was $0.5 million or $0.04 per share compared with net income of $0.4 million or $0.03 per share for the same period of the prior year and net income of $37 thousand for the prior quarter.

Louis Doctor, president and chief executive officer, said, "Revenues in the first quarter were lower than expected principally due to weakness in international markets. We are taking steps to advance our international business through our recent launch of Ready-to-Edit workstations in the U.K. We are hopeful that we will see a rebound in our international business in the near future.

"Meanwhile in the U.S., our new Ready-to-Edit Workstations are gaining acceptance in the marketplace as we have expanded our offerings to include both real-time and uncompressed systems.

"We believe that our present transition to a build-to-order systems business is the right selling strategy for many of our board-level TARGA products. Selling and supporting a complete solution is easier and less expensive and leads to a higher level of customer satisfaction.

"We are in the process of expanding the dealer participation in the Ready-to-Edit program and expect that this product line will grow significantly in coming quarters."

Doctor continued, "The company will continue to foster OEM partnerships in market segments such as broadcast and high-end post-production as its has for many years. Our TARGA HD technology announcement was well received and has opened the doors for us with several important new application developers.

"We continue to manage our operating expenses carefully, but are continuing our strategic investments in technology and market development and anticipate that revenues will begin to grow again soon."

Truevision is the leader in desktop video for business and broadcast and offers a full range of videographics products for personal computers, including Apple Power Macintosh and Microsoft Windows platforms. The company pioneered the videographics industry in 1984 and remains a market and technology leader.

                           Truevision Inc.
                      Consolidated Balance Sheets
                              (Unaudited)
                                           Sep-26           Jun27
                                            1998             1998
(In thousands)
ASSETS
Current assets:
  Cash and cash equivalents               $ 3,630          $4,973
  Accounts receivable, net                  3,914           3,911
  Inventory                                 4,733           4,551
  Prepaid expenses and other assets         2,778           2,786
Total current assets                       15,055          16,221
Property and equipment, net                 1,547           1,721
Other assets, net                             129             112
Total assets                              $16,731         $18,054
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable                        $ 3,804          $4,285
  Accrued employee compensation             1,014           1,334
  Other accrued liabilities                 2,411           2,502
Total current liabilities                   7,229           8,121
Long-term obligations                          36              44
Total liabilities                           7,265           8,165
Total stockholders' equity                  9,466           9,889
Total liabilities and
stockholders' equity                      $16,731         $18,054
                           Truevision Inc.
                 Consolidated Statements of Operations
                              (Unaudited)
                                          Three Months Ended
                                         Sep-26           Sep-29
                                          1998             1997
(In thousands, except per share data)
Net sales                                  $7,510         $10,092
Cost of sales                               4,644           5,857
Gross profit                                2,866           4,235
Operating expenses:
  Research and development                  1,092           1,405
  Selling, general and administrative       2,249           2,384
Total operating expenses                    3,341           3,789
Income (loss) from operations                (475)            446
Interest and other income
 (expense), net                               (11)           (83)
Income (loss) before
 provision for income taxes                  (486)            363
Provision for income taxes                      0              11
Net income (loss)                           ($486)           $352
Basic Earnings per Share:
 Net income (loss)                         ($0.04)          $0.03
Diluted Earnings per Share:
 Net income (loss)                         ($0.04)          $0.03
Weighted average common shares
 and equivalents:
 Basic                                     13,080          12,760
 Diluted                                   13,080          12,903