8-K

  
  
  UNITED STATES
  SECURITIES AND EXCHANGE COMMISSION
  WASHINGTON, D.C.  20549
  
  
  
  
  
  FORM 8-K
  
  
  
  CURRENT REPORT,
  PURSUANT TO SECTION 13 OR 15(d) OF
  THE SECURITIES EXCHANGE ACT OF 1934
  
  
  
  DATE OF REPORT: February 4, 1999
  
  
  CHYRON CORPORATION
  (Exact Name of Registrant as Specified in Charter)
  
  
  
  New York     
  (State or Other Jurisdiction
  of Incorporation)
  
  1-9014
  (Commission File Number)
  
  11-2117385
  (I.R.S. Employer
  Identification No.)
  
     
  5 Hub Drive
  Melville, New York
  (Address of Principal Executive Offices)                           
  
  11747
  (Zip Code)
  
  Registrant's telephone number, including area code: (516) 845-2000
  
  
  Item 5.  Other Events and Exhibits
  
  Pursuant to Rule 135c promulgated under the Securities Act of
  1933, as amended, the Registrant files, under cover of this 8-K, the text
  of a public notice released by the Registrant on this date.  The text of
  such notice can be found as an exhibit attached hereto.
  
  Exhibits      Description
  
     1       Press Release of the Registrant, dated February 4, 1999.
  
  
  SIGNATURES
  
  Pursuant to the requirements of the Securities Exchange Act of 1934, the
  Registrant has duly caused this report on Form 8-K to be signed on its
  behalf by the undersigned hereunto duly authorized.
  
  
  CHYRON CORPORATION
  
  
  By: /s/ Dawn Johnston 
  Name: Dawn Johnston
  Title: Senior Vice President and
       Chief Financial Officer 
  
  
  Date:  February 4, 1999
  

EX-1

  
  
  
  
  CONTACT:
  Edward Grebow,
  President and Chief Executive Officer
  (516) 845-2175
  egrebow@chyron.com
  
  Dawn R. Johnston
  Senior Vice President and Chief Financial Officer
  (516) 845-2011
  djohnston@chyron.com
  
  Chyron's Investor Relations:
  Focus Partners LLC
  Harvey A. Goralnick
  (212) 752-9445
  hg@focuspartners.com
  
  Chyron Website: www.chyron.com
  
  CHYRON REPORTS 1998 YEAR-END AND FOURTH QUARTER RESULTS
  
  Melville, NY   February 4, 1999   Chyron Corporation (NYSE: CHY), the
  world's premier manufacturer of television character generators, graphics,
  routing and automation systems, today announced financial results for the
  year and fourth quarter ended December 31, 1998.
  
  Net sales for the year were $83.7 million compared to $86.8 million for
  1997.  The net loss for the year was $4.4 million, or $0.14 per share,
  compared to a loss of $.8 million, or $0.02 per share, for 1997.
  
  Net sales for the fourth quarter ended December 31, 1998 were $19.0 million
  compared to $23.2 million in the comparable 1997 quarter.  The net loss for
  the fourth quarter of 1998 was $970 thousand, or $0.03 per share, compared
  to net income of $632 thousand, or $0.02 per share, for the comparable
  period in 1997.
  
  "While we continue to be disappointed by the slow pace of sales and our
  inability to achieve consistent profitability," commented Edward Grebow,
  President and CEO, "we are encouraged by signs that America's conversion to
  digital television is finally occurring.  During the fourth quarter, 42
  American broadcast stations commenced digital and HDTV transmission and
  retailers started selling digital television sets.  Chyron launched sales
  of its Duet digital and HDTV graphics platform and has thus far sold 23
  units for a total of $1.1 million.  I am also encouraged in recent weeks by
  the news that digital television sets are beginning to come down in price
  and that additional broadcasters are starting digital transmission.  We are
  optimistic that this will translate into incremental Chyron sales during the
  coming months and dramatic increases during coming years.  Chyron remains
  well positioned to be a significant beneficiary of the conversion to digital
  television throughout the world."
  
  Sales of Chyron's graphics products and Pro-Bel products in the U.S.
  increased by $10 million during fiscal 1998 but were offset by reduced
  international sales, largely in Asia and the U.K., and the loss of revenues
  resulting from the sale in August 1998 of the Company's Trilogy division
  which represented $2.4 million of the decline.  Operating income declined
  from $0.3 million in 1997 to an operating loss of $5.5 million in 1998. 
  Significant factors contributing to this change were an increase in
  operating expenses resulting from enhanced R&D efforts to support the
  digital and HDTV markets and increased costs associated with the continued
  effort to improve customer service, partially offset by improved profit
  margins due to a change in product mix.  The net loss of $4.4 million
  benefited from a gain of $1.2 million realized on the sale of Trilogy.
  
  Consistent with the yearly results, the quarter was impacted by a softness
  in sales in the international market and the loss of Trilogy revenues,
  partially offset by an overall increase in U.S. sales of Pro-Bel and Chyron
  graphics products.  Chyron sales in the U.S. increased by 28% from the same
  quarter a year ago.  This was offset by a 39% decrease in sales outside the
  U.S.  Overall gross profit was lower by $2.2 million in the fourth quarter
  of 1998 compared to the same period in 1997.  Although there were improved
  margins on sales of the Company's core products, these were offset by
  greater than anticipated costs on one large customer contract.  Operating
  costs declined by $0.4 million to $9.4 million in the fourth quarter of 1998
  compared to $9.8 million during the fourth quarter of 1997.  Despite the 
  elimination of operating costs related to Trilogy and cost containment
  initiatives instituted by management, these were offset to a lesser degree
  by increased R&D costs.  The $9.4 million of operating costs in the fourth
  quarter of 1998 was lower than the $9.9 million of operating costs in the
  third quarter of 1998, reflecting the continuous emphasis on cost reduction
  and the elimination of Trilogy operating costs. 
  
  During December 1998, Chyron issued $1.1 million of 8% 5-year convertible
  notes and is in the process of raising up to $10 million of additional long-
  term convertible debt to fund continued research and development and reduce
  the Company's reliance on bank debt.  There can be no assurance that the
  Company will be successful in its effort to raise such additional debt.  The
  notes will not be registered under the Securities Act of 1933 and may not
  be offered or sold in the United States absent registration or an applicable
  exemption from the registration requirements.  Chyron's management believes
  that now is a good time to position the Company for selective acquisitions
  as the broadcast industry consolidates, and that strengthening Chyron's
  balance sheet will facilitate that strategy.
  
  Information set forth in this Press Release may constitute "forward-looking
  statements" under the Private Securities Litigation Reform Act of 1995.  In
  order to comply with the terms of the safe harbor, the Company notes that
  a variety of factors could cause the Company's actual results to differ from
  the anticipated results.  The risks and uncertainties that may affect the
  Company's business include, without limitation, the following: product
  concentration in a mature market, dependence on the emerging digital market
  and the industry's transition to DTV and HDTV, resistance within the
  broadcast or cable industry to implement DTV and HDTV technology, rapid
  technological changes, new technologies that could render certain Chyron
  products to be obsolete, a highly competitive environment, competitors with
  significantly greater financial resources, and new product introductions by
  competitors.  Further information regarding these as well as other key risk
  factors and meaningful cautionary statements that could affect the Company's
  financial results are included at length in the Company's Form 10-K for the
  fiscal year ended December 31, 1997, filed with the Securities and Exchange
  Commission.
  
  
  CHYRON CORPORATION
  Consolidated Statements of Operations
  (In thousands, except per share amounts)
  
  
                               Three Months Ended      Year Ended
                                December 31            December 31
                                 Unaudited
                               1998      1997         1998       1997
  
  Net sales                   $19,027   $23,153     $83,710     $86,774
  Cost of products sold        10,419    12,327      44,250      46,944
  Gross profit                  8,608    10,826      39,460      39,830
  
  Operating expenses:
  
  Selling, general and 
    administrative              7,467     8,056      31,420      29,662
  Research and 
    development                 1,922     1,716       9,537       6,822
  Restructuring and other
   non-recurring charges          -          -        3,979       3,082
  Total operating 
   expenses                     9,389     9,772      44,936      39,566
  
  Operating income (loss)       (781)     1,054     (5,476)         264
  
  Gain on Sale of Trilogy 
   Broadcast, Ltd.                -         -        1,194           -
  
  Interest and other 
   expense, net                 (381)      (67)     (1,786)      (1,242)
  
  Income (loss) before 
   (benefit)provision 
   for income taxes           (1,162)      987      (6,068)        (978)
  
  (Benefit) provision 
   for income taxes             (192)      355      (1,621)        (218)
  
  Net income (loss)           $ (970)    $ 632    $ (4,447)      $ (760)
  
  Net Income (loss) 
   per share - 
  Basic and diluted           $(0.03)   $ 0.02     $ (0.14)    $  (0.02)