Television digest with electronic reports (Jan-Dec 1954)

13 Olympic Radio reports net profit of $62,157 (14(‘ a share on 431,925 common shares outstanding) on sales of $17,667,485 in 1953, compared to $84,747 (20c on 429,925 shares) on $12,765,708 in 1952 and $425,534 ($1.11 on 383,593 shares) on sales of $14,467,072 in 1951, when company received tax credit of $235,000. Working capital at year’s end amounted to $2,891,045, compared to $2,902,780 at end of 1952. Backlog of defense orders was $14,000,000. In annual report, pres. Morris Sobin blamed TV pricecutting and factory wage increase retroactive to July 1 as major reasons for profit decline. Color publicity, he added, also upset normal industry pattern of high sales in last quarter of year. Several experimental color sets have been built by Olympic and factory personnel are being trained so “regular production may commence as soon as larger color picture tubes and components become available.” Proxy notice for annual stockholders meeting April 26 in company’s Long Island offices discloses these remunerations paid to officers & directors in 1953: Sobin, $33,099; Albert Friedman, sales v.p., $65,600; Dr. R. Bowling Barnes, research & development director, $31,100. Wells-Gardner & Co. reports record 1953 sales of $22,672,069, net income of $772,939, compared with $16,301,043 & $459,976 for 1952. “We enter the new year with a large backlog of govt, work which should result in a substantial sales volume and a profit during 1954,” says annual statement. “However at the outset, the reverse is true in the civilian field. Shipments of radio & TV receivers showed a marked drop during the last few months of the year, and our customers entered 1954 with high inventories. [But] reduced production during the last quarter of 1953 and continuing into 1954 is bringing inventories back to normal.” Webster-Chicago Corp. reports profit of $927,162 ($1.87 a share) on sales of $27,757,899 in 1953, compared to loss of $408,951 on sales of $19,580,686 in 1952. Govt, billings accounted for 17% of 1953 sales, with backlog of $13,000,000 at year’s end, reports pres. R. F. Blash. He said all divisions — consumer products, laminations, govt, contracts — showed gains in 1953 and predicted 1954 sales of consumer products would be “as good as or better than 1953.” Reeves Soundcraft Corp. reports net earnings of $284,301 on sales of $3,566,054 in 1953, compared to $90,187 on $3,364,921 in 1952 and loss of $77,570 on $2,054,401 in 1951. In addition, Airdesign Inc., wholly-owned subsidiary of Tele-Video Corp. (owned 66% by Reeves), showed net profit of $30,795 on sales of $344,542. Company now owns 431,849 common shares of Cinerama Inc., and is contracting with several motion picture studios for use of its magnetic striping process for CinemaScope pictures, said annual report of pres. Hazard E. Reeves. Stewart-Wamer Corp. and subsidiaries report 1953 sales of $129,797,692, net income of $4,080,810 ($3.04 per share), compared with 1952 sales of $122,561,833, net income of $4,233,850 ($3.30). Annual report blames “larger than normal carryover of TV & radio sets” for bulk of $3,000,000 increase in inventories, but adds that shipments since first of year have substantially reduced this figure. Report says Stewart-Wamer expects to build “modest quantity” of color sets this year. RCA notice to stockholders, asking proxies for May 4 annual meet to vote on new employe incentive plan, reveals following 1953 remunerations to officer-directors: David Sarnoff, $200,000; Frank M. Folsom, $165,000; L. W. Teegarden, $131,096; Walter A. Buck, $90,625; C. B. .Tolliffe, $70,100; Edward F. McGrady, $18,100; Harry C. Ingles, $13,564; John T. Cahill, $3100 (law firm of Cahill, Gordon, Reindel & Ohl received $375,000 for legal services to RCA). Electronics Reports: Defense electronics progress and problems occupied large part of this week’s Washington meeting between top electronics industry executives and high officials of Commerce, Defense and Treasury Depts. Asst. Defense Secy. Donald A. Quarles told conference the research & development program is now at its top level — greater than World War II — at annual rate of $1.3 billion, but this will be cut back 7-10% in fiscal 1955. Some 60% of research & development is now being contracted to private industry, 10% to non-profit institutions such as universities and research organizations. Acting director Donald S. Parris of Electronics Div. of Commerce Dept.’s Business & Defense Services Administration (BDSA) revealed that tax-aided expansion of electronics industry’s defense production potential approved by Govt, now totals $328,000,000 in new and proposed facilities. Some 1200 requests for rapid tax amortization have been approved from Jan. 3, 1951 to Apr. 5, 1954, he said, giving this breakdown: tubes, $102,000,000 in new facilities; components, $52,000,000; end equipment, $174,000,000. Comments and questions by industry representatives included: (1) Opposition to recent Air Force policy of concentrating contracts with a prime “systems” contractor, leaving it to him to control procurement of such items as electronic systems, in place of former policy of giving separate prime contracts for electronic equipment and other items used in aircraft. Quarles replied that Defense Secy.’s office has set up applications engineering group to correct this situation. (2) Complaint that number of electronic engineering graduates has declined to 50% of former level and that shortage is becoming more acute. BDSA official said his office will try to determine what can be done to encourage more young people to study engineering. (3) Request for Defense Dept, to disclose its electronics requirements in the event of all-out mobilization. Industry representatives attending conference: Dr. Allen B. DuMont; Harry A. Ehle, International Resistance Co.; H. J. Hoffman, Machlett; Richard A. Wilson, Magnavox; Joseph M. Gillies, Philco; A. D. Plamondon Jr., Plamondon Magnetics Co.; Ralph T. Brengle, Potter & Brumfield; Glen McDaniel & James D. Secrest, RETMA; Robert S. Alexandei-, Wells-Gardner; Max F. Balcom, Sylvania; Sidney R. Curtis, Stromberg-Carlson ; W. M. Adams, Sprague Electric; J. A. Milling, Howard W. Sams & Co.; W. W. Watts, RCA; Russell E. Cramer, Radio Condenser Co. ♦ * * ♦ Dr. Oliver G. Haywood Jr., recently Sylvania mgr. of engineering planning and a West Point graduate, appointed mgr. of its new Missile Systems Laboratory in Queens County, N. Y., his staff including Frank S. Manov, mgr. of systems analysis dept.; Dr. Maurice E. Bell, mgr. of plans dept.; Ernest Schlieben, mgr. of electronics dept. Lloyd Espenschicd, noted Bell Labs inventor (more than 100 patents, including co-invention of coaxial cable system ) , retiring after 44 years with Bell System. He was born in St. Louis in 1889, joined AT&T in 1910. IBEW pres. Daniel W. Tracy resigned, effective April 15, to be succeeded by international secy. J. Scott Milne, whose place will be taken by J. D. Keenan. T. V. Learson, ex-gen. sales mgr., pi’omoted to director of electronic data processing machines. International Business Machines Corp. Croslcy’s Canadian subsidiary doubling floor space of its West Toronto plant to 90,000 sq. ft.; estimated cost is $800,000 and payroll will be 600.