Radio age research, manufacturing, communications, broadcasting, television (1941)

RCA's two-way radio equipment is the modern means of communication between fixed locations and vehicles. received is one from the North Atlantic Treaty Organ- ization (NATO) for use in Europe. (7) A closed-circuit type of industrial television for use as a "remote eye" for industry through hundreds of applications including observation of dangerous proc- esses, the transmission of pictorial information, and mass training in industry and the milit.iry services. (8) Transistors — tiny electronic devices which function like certain types of electron tubes —• are being developed by RCA for mass production as a new key that opens vast possibilities for new designs of radio, television and electronic instruments for civilian and military use. (9) International television as a regular service to be realized within the next five years. First Quarter Results General Sarnoff annoimced that net earnings of RCA for the first quarter of this year amounted to $7,076,520, as compared with Si 1,901,542 for tlie first quarter of 1951. After providing for preferred dividends, earnings per common share for the first quarter of 1952 were 45 cents, compared with 80 cents per share for the first quarter last year. Consolidated gross income of RCA during the first quarter of 1952 amounted to $163,871,331. Profits, be- fore Federal income taxes, amounted to §14,841,520. A dividend of 50 cents per share on the common stock of RCA was declared by the Board of Directors on April 4, 1952. It is payable on May 29, 1952, to holders of record of such stock at the close of business on April 18, 1952. "Like the rest of the industry, RCA was affected by a decline in TV set sales during the first quarter of 1952 compared with the first quarter of last year," said Gen- eral Sarnoff. "At that time scare buying created ab- normally high demand which was followed by a slump in TV set sales and increased inventories throughout the trade. "In the first quarter of 1952, however, RCA Victor manufactured all the television receivers permitted under government allocation of materials. We sold what we produced and our inventory is normal at this time. The prospects for increased sales during the balance of this year appear to be promising." In 1951, RCA paid $62,389,000 in taxes to Federal, State, and local governments. This was more than double the net profits earned for the year. Taxes amounted to S4.49 on each share of common stock. "This means that for every 2>V2 minutes throughout 1951, RCA paid $1,000 in taxes," General Sarnoff re- ported. He added: "In the past ten years, RCA's tax payments amounted to 352 million dollars. For the same period, profits — after taxes — totaled 197 inillion dollars. "The ten year ratio of tax payments to dividends paid on the common stock, is approximately 6 to 1. That is, six dollars in taxes for every dollar in dividends. "And even this does not tell the whole story. For in addition to the taxes paid by the Corporation, there are indirect taxes included in the cost of materials and services we bought from others." Government Orders General Sarnoff said defense contracts received by the RCA Victor Division have increased rapidly since the outbreak of the Korean conflict, and reported that the backlog of military orders continues to be sub- stantial. He disclosed that in April, 1952, the RCA Victor Division began construction of an engineering and development center on 430 acres near Moorestown, N. J., as a new "proving ground" for electronics connected wiih defense contracts in radar and related projects. Television Service Extended General Sarnoff reported to stockholders that tele- vision broadcasting continued to operate at profitable levels, as it did for the first time in 1951. He cited the fact that television had accounted for a sales increase of 48% over the preceeding year in the National Broad- casting Company, and added: 22 RADIO AGE