Broadcasting Telecasting (Oct-Dec 1963)

ficial in the public interest," the report says. Fiscal year ended June 30: 1963 196? Earned per share $1.68 $1.58 Revenues 71,187.000.00 69,314,000.00 Costs and expenses 67,238,000.00 65,429,000.00 Federal and state income taxes 1,863,000.00 1,787,000.00 Net earnings and special credits 2,232,000.00 2,098,000.00 Rust Craft's annual report Rust Craft Greeting Cards Inc., which owns a group of radio and TV stations formerly known as Friendly Stations, reported improved sales and earnings for the 12 months through August. The report for this year includes a full year of broadcasting operations; last year's comparable period in cludes only six months of broadcasting. Twelve months ended August: 1963 1962 Net operating earnings per share $0.88 — Net sales $33,668,000 $28,273,700 Net operating earnings or loss after income taxes* 640,200 (705,900) * Excludes special nonrecurring items amounting after taxes to $110,000 profit in 1963 period; $1,356,700 in 1962. Wometco's first nine months Wometco Enterprises reported that 30% of earnings in the first nine months, amounting to $453,177, were paid in dividends and 70%, or $1,060,891, has been retained in the business. It also announced that cash flow generated from earnings amounted to $2,359,731 ($1.63 a share) in the three quarters. 36 weeks ended Sept. 7: 1963 1962 Earned per share* $ 1.04 $ 0.92 Gross income 14,826,918 13,099,915 Federal income taxes 1,380,000 1,187,900 Net income 1,514,068 1,317,031 ♦Adjusted for 30% stock dividend paid Dec. 21, 1962. Reade/sterling earnings up Six months ended June 30: 1963 1962 Earned per share* $0.14 $0.10 Gross revenues 5,500,725.00 4,202,063.00 Costs and expenses 5,025,488.00 4,038,594.00 Income before provision for federal taxes 475,237.00 163,469.00 Provision for federal taxes 251,702.00 10,320.00 Net income 223,535.00 153,149.00 *Based on average of 1,544,164 shares outstanding in 1963 period and 1,488,571 shares outstanding in 1962 period. EQUIPMENT & ENGINEERING COLOR WILL HIT $1 BILLION BY '65 Saxon notes continuing upswing in color sales Raymond W. Saxon, president of RCA Sales Corp., last week told a luncheon meeting of the New York Sales Executive Club that the retail sales rate of color TV sets will surpass the $1 billion annual sales rate of blackand-white sets by 1965. Mr. Saxon predicted that the sales rate will pass the $450 million mark this year and reach at least $750 million next year. He noted that RCA's distributor-todealer color set sales are running 67% ahead of last year, and color dollar volume has surpassed that of black-andwhite. Mr. Saxon said there is now a high enough percentage of regular prime time program offerings in color, and that this area is no longer a "serious deterrent" in the purchase of receivers in a "mass market." He also said that the once-present problem of color reception quality is another area of doubt that has apparently been removed from the mind of the average consumer. Mr. Saxon noted that price is still a source of hindrance in color sales, and he said, "We cannot foresee a drastic change in this pricing condition over the next few years." Mr. Saxon said the total expenditure for RCA's development and introduction effort in the color TV field is estimated at $130 million. He also noted that color TV sales in general have grown to the point where approximately one color set is sold for every nine black-and-white receivers, and it's expected that next year one color set will be sold for every five black-and-white models. FCC re-affirms date for all-channel sets To allay rumors that the FCC really didn't mean to force the production of all-channel TV receivers beginning May 1 next year, apparently rife among manufacturers of television sets, the FCC has written an official communication to James D. Secrest, executive vice president of the Electronic Industries Association. In the letter, the commission says: "We wish to advise you explicitly by this letter that the commission has no intention of deviating from its decision to encourage full utilization of the UHF channels for television broadcasting. We do not intend to initiate any general changes in the principles of the table of channel assignments, including mileage separation requirements for television stations, nor do we anticipate any change in the date (April 1, 1964), after which television broadcast receivers manufactured must be capable of receiving all television broadcast channels. "We hope that this information will dispel any uncertainty as to the commission's intention to maintain its present television allocations policies." New RCA beam power tube RCA announces a new forced, aircooled UHF beam power tube with a capability of 10 kw continuous wave output at 400 mc. The new Cermolox RCA-8437 tube is rated up to 500 mc as a radio frequency power amplifier and oscillator in Class C telegraphy, as an RF power amplifier in Class C FM telephony, and is well suited, RCA says, for use as a frequency multiplier, audio frequency power amplifier or modulator, AM or single-sideband linear RF power amplifier, television or other broadband amplifier. ITA becomes Triangle division ITA Electronics Corp., Lansdowne, Pa., manufacturer of transmitters and studio equipment for broadcasting, has become a division of Triangle Publications Inc., it was announced last week. Triangle bought a minority interest in ITA two years ago and acquired the balance of the company less than a year ago. Henry E. Rhea is operating head of Triangle's electronics division. Two more enter color Two more television manufacturers, Muntz TV Inc. and American Television Inc., both Chicago, announced last week they are making color sets available for immediate delivery. Both are using the 21-inch round RCA tube. Muntz is stressing three-way combination units since its present sale of black-and-white sets falls into this category. Ranging in price from $425 to $800, the new Muntz color sets also include AM-FM radio and stereo phonograph. American Television, which makes the deForest brand set, is featuring a color table model leader priced at $299. A step-up model is priced $400 with a combination unit at $750. The deForest set features a rectangular picture upon the round tube. )8 BROADCASTING, October 7, 1963