Weekly television digest (Jan-Dec 1962)

10 MARCH 5. 1962 MOTOROLA COLOR LINE IN JUNE: Motorola definitely will have color TV line — using RCA 21-in. round tubes. But it hopes it will be able to drop in highend sets using its own-design 23-in. rectangular 90-degree tubes before year’s end. This peek at Motorola color plans was given at week’s end by Motorola Consumer Products Inc. Pres. Edward R. Taylor, in N.Y. for distributor convention. Taylor confirmed our story of last month at development work on rectangular tube is continuing at National Video (Vol. 2:8 p7), and added that developmental samples of tubes have been taken to Japan & Holland for scrutiny by tube makers there. He gave these additional hints about Motorola’s attitude towards color and its upcoming color line: “All of our research indicates about 175,000 color sets were sold last year. We say about 250,000 will be sold this year. RCA says 500,000. We may be a little low and RCA may be a little high. “Our line for this June is pretty well frozen. It will have 21-in. RCA color tubes. But if we can get our rectangular tubes in quantity even as late as Labor Day or Thanksgiving we’ll drop them into the line. I don’t mean in dribs & drabs — that would only slow down sales of 21-in. sets, and we don’t want to do that.” Motorola’s 21-in. color line probably will start with consolette at about $595, Taylor said. He estimated that 23-in. rectangular 90-degree color tubes should make set worth $50-$75 more than 21-in., and indicated that even if 23-in. tube is perfected, Motorola will use 21-in. tubes in its leader models. “If Mexico can persuade foreign firms to build components in Mexico it can not only provide more jobs for Mexicans but also reduce fiscal problems that are partly a result of high imports,” commented Feb. 27 Wall St. ■Journal in an analysis of Mexico’s tightening regulations for foreign participation in her economy. “The Mexican desire to promote domestic industry is leading to govt.sanctioned monopolies,” Journal also noted, adding as an example: “Businessman Jose Sanchez Castano 2 years ago set up a small company called Mex-Mial S.A. to make condensers for radio & TV sets under a license from an Italian firm. Sitting in his office in Mexico City, he points to a chart showing that his condenser sales soared to $00,000 in Nov. 1961 from $600 a year earlier. The reason: Condenser import quotas have been denied the 36 radio & TV set makers in Mexico and they must now buy them from Mex-Mial.” “Use Japanese production to beat high costs,” urged U.S. electronics manufacturer Nova-Tech Inc., Manhattan Beach, Cal., in Feb. 20 Wall St. Journal ad. Company advertised “that its Japanese branch will quote on your electronic assemblies or complete units in large or small quantities. We can quote from schematics, photos or samples. If Japanese labor supervised by American engineers can help your company make profits, write directly” to Tokyo branch, ad concluded. Amphenol-Borg Electronics has reduced its quarterly dividend to 20(1 from 35tf “to allow greater freedom of action to achieve long-term objectives.” Pres. Matthew L. Devine said the lower rate “should maintain the company’s sound financial condition while providing for continued growth.” 191 Million Transistors: Total 1961 factory sales of transistors closed out a record 190,916,354 units — up markedly from 1960’s 127,928,568, EIA reported last week. However, reflecting the profit squeeze in the semiconductor industry (Vol. 1:5 p7), dollar value fell $1,893,525 to $299,538,760 from $301,432,285 in 1960. Same sales-up, dollars-down pattern was reflected in 1961’s closing month. December sales totaled 18,166,839 units valued at $24,883,538. In Dec. 1960, 13,347,525, or nearly 5 million fewer transistors were sold, but they produced $27,915,649, or more than 3 million more dollars. Here are EIA’s tabulations of 1961 & 1960 factory transistor sales by months: 1961 I960 L'nits Dollars L'nits Dollars January ... 12,183,931 $22,965,167 9,606,630 $24,714,580 February ... 13,270,428 25,699,625 9,527,662 24,831,570 March ... 15,129,273 29,815,291 12,021,506 28,700,129 April ... 15,072,064 27,388,278 9,891,236 23,198,576 May ... 15,128,181 25,113,042 9,046,237 24,714,580 June ... 17,899,005 26,148,746 10,392,412 27,341,733 July ... 11,227,388 17,506,011 7,070,884 18,083,802 August ... 17,193,860 25,155,627 9,732,993 22,739,969 September ... ... 19,386,202 27,220,248 12,973,792 28,442.229 October ... 18,232,530 24,018,037 12,168,632 25,945,195 November ... 18,342,285 24,034,703 12,149,077 25,372,480 December ... 18,166,839 24,883,538 13,347,525 27,915,649 TOTALS 190,916,354 $299,538,760 127,928,586 $301,432,285 ■ Film ways Inc. filed registration statement (SEC File 2-19851) for 48,111 shares of common stock. Of total, 1,800 shares underlie warrants which remain unexercised, and 12,500 will be offered to Haskell Wexler for motion picture and allied rights to Evelyn Waugh novel “The Loved One.” Remaining shares, including 10,811 which underlie unexercised portion of option granted to Arthur S. Laundon at $4,997, and 23,000 shares outstanding, may be offered for public sale on ASE until March 1963. Company produces TV commercials, TV films, motion pictures. There are 568,654 common shares outstanding. Chmn. Martin Ransohoff owns 19.3%, management officials as a group 27.2%. Rodney Erickson is pres. MGM earnings in the fiscal year ending Aug. 31 will lag behind the $12.6 million ($5.02) posted in preceding year, Pres. Joseph R. Vogel told annual meeting. However, he termed outlook “very rosy,” noted that release of post-1948 films to TV was beginning to provide additional revenue. Commenting on Metro-Kalvar Inc., MGM’s joint venture with Kalvar Corp. on a heat process for developing film without darkroom & chemicals, Vogel said research is proceeding to determine if Kalvar film can be adapted on a commercial basis for TV & movie film. Mergers & acquisitions: Oak Mfg., Crystal Lake, 111. components manufacturer, has purchased for cash Delta-f Inc., Geneva, 111. maker of frequency control systems. Delta-f will be operated as subsidiary of Oak’s subsidiary McCoy Electronics Co. • Ling-Temco-Vought has sold its Dishwasher Div. to newly-formed LT Industrial Inc., Independence, Kan. because “our future plans in the fields of aerospace, communications, electronics and certain commercial & industrial products were not entirely compatible with the dishwasher program.” TV-Electronics Fund’s total net assets increased to $439,798,909 at the close of fiscal-1962’s first quarter, ended Jan. 31, from $388,191,179 a year earlier. Net assets per share increased to $8.56 from $8.05. Outstanding shares climbed to a record 51,378,397 from 48,227,691 on Jan. 31, 1961. At quarter’s close, 92.5% of the Fund’s investments were in electronics, nucleonics, aerospace and allied fields, compared with 83.6% a year earlier.