Weekly television digest (Jan-Dec 1960)

VOL. 16: No. 1 23 Magnavox expects record sales & profits for the 2nd fiscal qarter which closed last week (31). Pres. Frank Freimann anticipates a sales jump of some 33% to $35.5 million, with net income increasing to $2.2 million (about 95^^ a share) from $1.5 million (60(f) in the year-ago quarter. For the half-year ended Dec. 31, the outlook is for a 40% sales increase to about $61 million, a 53% gain in earnings to $3.4 million ($1.45) from $2,222,000 (89^) in fiscal-1959’s first half. Freimann noted that TV accounted for the major gains in Magnavox’s consumer-products operation, which produces some 70% of total business. “Our bigger-than-industry growth in TV is attributable in part to the company’s stereo-theater, a $595 combination stereophonic radio-phonograph & TV,” he said. “Half our dollar volume in TV sales is stemming from these high-priced models.” He reported that Magnavox is in final stages of negotiations for acquisition of a British electronics firm “that will give us among other things entry into the British market and springboard to the Continent.” Fast amortization for tax purposes has been granted by the Office of Civil & Defense Mobilization on 53 new defense-related facilities totaling approximately $45 million. The largest affected is Texas Instruments’ planned $8,750,000 military electronics research & production center. TI has been allowed fast depreciation of the facility’s capital cost. The OCDM grant permits a company to depreciate a specified amount of a new facility’s costs in 5 years, instead of a normal span of some 20 years. This has the effect of lowering income taxes in the early years of a building’s existence. Among other grantees: General Dynamics, 60% of a $1,217,600 missile & space vehicle research facility; GE, 65% of a $1,204,000 development & production center for rocket cases; Motorola, 40% of a $1,005,331 electronics R&D facility. Television Shares Management Corp., investment manager & principal underwriter for Television-Electronics Fund Inc., scored a 142% increase in net income on “record sales of shares and an increase of $103.4 million in the assets of Television-Electronics Fund” for the fiscal year ended Oct. 31. Pres. William H. Cooley, in the firm’s first annual report since becoming a public company, said he anticipated continued progress in 1960. “The outlook for electronics & nucleonics is relatively bright,” he said, “and the growing acceptance of the Fund by investors & securities dealers is expected to continue.” (For the Fund’s fiscal1959 report, see Vol. 15:49 p22.) For the fiscal year ended Oct. 31: 1959 1958 Total revenues $2,714,566 $1,653,431 Net income 702,297 299,074 Per common share 66<^ 28^ Common shares (1959) .. 1,060,000 1,060,000 RCA has changed the conversion price of its 3% % convertible debentures to $49.04 a share from $50. The adjustment, effective Dec. 18, results from the declaration on Dec. 4 of a 2% stock dividend, payable Feb. 1 to holders of common stock on Dec. 18. Sunair Electronics Inc., Fort Lauderdale, Fla. manufacturer of radio transceivers for light aircraft, has asked SEC (File 2-15975) to register 200,000 common shares for public sale at $3 per share. Northeastern Investors Corp., N.Y., is the underwriter. Herts-Lion International Corp., to finance TV series, is floating (through Samuel B. Franklin Co.) a $300,000 public issue comprising 300,000 shares at $1 par value. Educational Television Thompson Ramo Wooldridge anticipates that 1959’s net income will slightly top 1958’s earnings of $8,979,200 ($2.86 a share) on a sales gain to $400 million from $340,622,000. Pres. Dr. Dean E. Wooldridge said the steel strike & defense cutbacks have affected sales & earnings, but he forecast 1960 gains in both areas. TRW business is currently about 60% military, 40% commercial. Wooldridge said subsidiary Pacific Semiconductors Inc. is registering sharp improvement. He estimated 1959 sales of $10 million (double the 1958 volume) and said sales of the West Coast subsidiary also will likely double in 1960. TRW, Wooldridge said, spent $15 million in 1959 for research & development of new products, will probably invest a like amount in 1960. Control Electronics Co. Inc., Huntington Station, N.Y. maker of specialty electronic equipment, proposes public sale of 165,000 common stock shares at $3 per share in an SEC registration statement (File 2-15959). Underwriters are Milton D. Blauner & Co. Inc., David Finkle & Co., and Gartman, Rose & Feuer. Reports & comments available: Philco, GT&E and Beckman Instruments, discussions, Goodbody & Co., 115 Broadway, N.Y. 6 . . . Philco, discussion, A. M. Kidder & Co., 1 Wall St., N.Y. 5 . . . Dynamics Corp. of America, analysis, Gude, Winmill & Co., 1 Wall St., N.Y. 5 . . . Clevite Corp., booklet, Clevite Corp., Cleveland 10 . . . Radio City Products Co. Inc., circular, Amos Treat & Co. Inc., 79 Wall St., N.Y. 5 . . . Electronic Associates Inc. analysis, W. C. Langley & Co., 220 S. 16th St., Philadelphia 2 . . . Electronics Capital Corp., review, Alkow & Co., 50 Broadway, N.Y. 4. Russian language is being TV-taught to some 4,000 students in 100 schools via educational KUED Salt Lake City. The instructor is Russian-born Andrei K. Anastasion who turned to language teaching in 1958 with 22 elementary school students, expanded the popular course via ETV. Most of the 4,000 TV students are of elementary school age; the classes are voluntary. Results: “They speak a better brand of Russian than some of our children,” appraised one of a group of Russian educators visiting an Anastasion language class. ETV series on Art & the Western World will be produced by the U. of Texas under a $20,000 contract awarded by the National ETV & Radio Center. The series will embrace 13 half-hour programs, video-taped for presentation on the nation’s 45 ETV stations. Faculty member Dr. Donald L. Weismann, widely known art historian, painter and lecturer, will write the lecture-demonstration series and appear as featured performer. ETV programming will comprise 10%-15% of the air time of upcoming WJPB-TV Weston, W. Va. (Vol. 15:52 p8), which expects to go on air Mar. 31. The Ch. 5 station has established an educational advisory committee, under the chairmanship of Bethany College Pres. Dr. Perry Gresham, to formulate its ETV programming. WJPB-TV Inc. Chmn. Thomas P. Johnson explained: “We realize our obligations to ETV and we plan to meet them.” Mutual assistance pact has been signed by National Assn, of Educational Bcstrs. and progiam-evaluating National Audience Board. The affiliation is a joint effort to aid TV programming.