Television digest with electronic reports (Jan-Dec 1954)

12 COLOR SITUATION remained little changed this week — W estinghouse feeling out public market-by-market, RCA preparing to launch commercial sales, most of rest of industry holding off because of “price, programming and picture size.” Westinghouse was reported selling only 3 sets in Chicago this week, but with dealers enjoying increased traffic for black-&-white because of color set on floor. RCA New York distributor Bruno-New York plans heavy promotion when it introduces set to market in next couple weeks, says it now has orders for 80% of its allotment for next 3 months. Nature of RCA campaign for other cities hasn’t been indicated yet. RCA’s prices for color set and servicing are now being adopted generally. Last week, GE went along with the $1000 for set, $150 for year’s service, established by RCA. Admiral did same this week. Though Admiral has lowered its sights on color production this year, it’s more optimistic than most. Sales v.p. W. C. Johnson says he expects industry to build about 75,000 sets this year — and that Admiral will make 10-15,000 of them. RCA says it’s aiming for 10,000 ( Vol. 10:14) . Thus, of the Big 3 — Admiral, Philco, RCA — only Philco has nothing to say about marketing sets this year. Repeated efforts to elicit information from Philco were unavailing. It has demonstrated a color tube in its labs and claims to have developed “the Philco color system,” just as RCA refers to “the RCA color system.” Though Philco is silent now, presumably it will eventually seek to become strongly identified with color in public’s mind and patent-wise. Philco has demonstrated de velopments to competitive manufacturers, asking them to refrain from public comment, even giving tube code name of “apple.” It’s obvious, however, that Philco’s work is not now commercially ready, nor is there any indication when it will be ready. Tube itself is said to be simpler than shadow-mask type but to require “monstrously complicated” circuitry at present stage. GE’s Dr. W. R. G. Baker summed up views of many in April 5 speech before Electric Club of Los Angeles. “The TV industry is in the untenable position,” he said, “of having announced under political and competitive pressure, a new service to the public without having the technological ability to deliver the service within the standards of economic limits acceptable to the public . . . The nub of the problem is the color picture tube.” He thought satisfactory tube might be available by mid-1955 “by heroic engineering effort.” He said that “a real marketing job on color” won’t come before 1956. Dr. Baker also intimated that industry could get together on standardization of receiver production just as it did on transmission standards — an unusual concept. His comments: “Congress did establish the FCC to set up standards to insure that there would be only one uniform signal specification, but the only law governing equipment standardization is [the Sherman Anti-trust Act]. I am told that it is possible even under the Sherman Act for companies to pool such efforts, provided, however, that the fruits of the combined work are made openly available to all on reasonable terms. However, these are matters well beyond the scope of my remarks today.” Financial & Trade Notes: Allen B. DuMont Laboratories Inc. reports record gross sales of $91,828,982 in 1953, compared with $76,166,782 in 1952 and $50,741,596 in 1951. Net profit after $1,549,000 Federal taxes was $1,544,782 (60^ a share) in 1953 vs. $1,424,603 (55^) after taxes of $1,473,300 in 1952 and loss of $583,000 in 1951. TV receiver and broadcasting divisions operated at loss last year, reports Dr. DuMont, but CR tube, tube development, instrument, transmitter and govt, divisions showed profit of 12.8% before taxes. CR tube div. alone increased sales by 33%, and govt, contracts accounted for about 17% of total volume. Regarding color. Dr. DuMont reiterated his oft-expressed position that it’s still in an “early developmental stage” and that it “will be a number of years before we will be able to supply large-screen color receivers at a price most consumers can afford.” Meanwhile, he states, the sale of black-&-white sets will be adversely affected. DuMont production this year will concentrate on table models and open consoles. n * ^ * Among officers’ and directors’ stock transactions reported by SEC for Feb.: Lewis Gordon bought 100 CBS “A,” holds 100; Edward R. Murrow bought 300 CBS “A” (June 1953), holds 300; Benjamin Abrams trusts bought 6200 Emerson (Dec. & Jan.), Abrams and trusts & foundations hold 304,439; Elliott V. Bell bought 100 General Precision Equipment, holds 300; Jeffrey S. Granger partnership bought 500 Sentinel Radio, personally and through partnership he holds 2000; E. Finley Carter bought 144 Sylvania, holds 1022; Don G. Mitchell bought 404 Sylvania, holds 3335; Howard L. Richardson bought 106 Sylvania, holds 437; Frederick W. Strauss bought 600 TravLer Radio, holds 1000; Hugh Robertson bought 100 Zenith, holds 1000. Television-Electronics Fund lists total assets of $36,491,226 ($7.80 a common share) as of March 31, compared to $27,835,082 ($6.93) on Oct. 31, 1953. Teleprompter Corp., cueing system which recently completed its largest assignment to date in handling more than 100 speeches during 4-day IRE convention, reports $17,281 net profit before provision of $9152 for taxes on gross rental business of $323,188 during 1953. This compares with $47,277 net profit before provision of $10,831 for taxes during 1952. Earned surplus on Dec. 31, 1953 was $26,586 as against $18,457 Dec. 31, 1952. Teleprompter renewed long-term contract with CBS, reports chairman Irving B. Kahn, and this month is being used for first time in making a full-length Hollywood production. Year has been period of “growing pains” and costly solution of manufacturing problems, Kahn states, but future holds “excellent prospects” and up to April 1 this year volume of business has run double that of same 1953 period. Muter Co. reports net earnings of $447,463 (66^ on 681,680 common shares) after taxes of $464,791 on sales of $15,190,004 in 1953, compared to profit of $345,573 (52<! on 661,825 shares) after taxes of $432,445 on sales of $12,653,060 in 1952. Working capital at year’s end was $2,972,283, compared to $3,077,975 at end of 1952. Pres. Leslie F. Muter predicted start of color production foreshadows increased business in coming years because color sets require 3 times as many components as monochrome. National Union Radio Corp. reports net profit of $166,458 (10<J a share) on sales of $12,158,045 in 1953, compared to $139,920 (2(‘) on $14,464,694 in 1952 and $370,910 (21(J) on $13,671,112 in 1951. Working capital was $1,713,297 at year’s end, compared to $973,242 at end of 1952. In annual report, pres. C. Russell Feldmann attributed decline in sales to sharp drop in demand for picture tubes in last half of year. Servomechanisms Inc. reports net profit of $305,089 (40^ on 760,700 common shares outstanding) after taxes of $541,352 on sales of $13,332,746 in 1953, compared to $276,024 (36<( on 758,000 shares) after taxes of $522,288 on sales of $10,151,589 in 1962.