Weekly television digest (Jan-Dec 1963)

12-TELEVISION DIGEST NOVEMBER 4, 1963 Mergers & acquisitions: TelePrompTer stockholders vote Nov. 8 on proposal to sell Weathers, Conley Electronics and Audio Visual Divs. to B. S. F. Co. , holding company controlled by Defiance Industries (Vol. 3:35 pl2). Latter's Pres. Victor Muscat estimated that Defiance in fiscal 1964, ending June 30, would earn "minimun of 12^" a Class B share on purchase of TelePrompTer operations . . . Industrial Electronic Hardware has purchased for undisclosed sum 16-2/3% interest in Data Communications, Moorestown, N.J. specialty supplier of data communication equipment. . . Outlet Co. (WJAR-TV Providence, WDBO-TV & WDBO Orlando) has bought subject to approval of boards of both firms, department store assets and business of Shartenberg' sine. , Pawtucket, R.L . . Adler Electronics stockholders have approved sales of company assets to Litton Industries in $9. 7 million transaction (Vol. 3:41 pll). . . United Scientific Labs (DeWald brand hi-fi equipment and Citizen Band transceivers) has been acquired by Vernltron Corp., Farmingdale, N.Y. maker of electromagnetic servo devices, for some $900,000 in stock and cash. One Vernitron common share was exchanged for each 5 of United's publicly-held 416.500 shares. United's management, which held remaining 577, 875 of total 974, 375 shares outstanding, received "about" $400,000 for their holdinjgs. Seymour Wald continues as pres, of United, which will operate as a Vernitron division. . . Ampex plans to acquire Mandrel Industries, Menlo Park, Cal. maker of sorting and geophysical equipment, in stock exchange valued at more than $29 million. If stockholders approve, Ampex would exchange 9 common shares for each 10 of Mandrel's 1, 550,044. Terms require acceptance by holders of 80% of Mandrel shares. Mandrel earned $1. 3 million on $21.3 million sales last year, would operate as Ampex subsidiary directed by Mandrel Pres. Doyle Mize. Directors of both firms haveapproved proposed merger, and Ampex Pres. William E. Roberts said it "fits Ampex' s plans for diversification." . . . Warwick Electronics and Pacific Mercury Electronics merger has been completed (Vol. 3:38 pl2), Warwick Pres. Lawrence G. Haggerty reported. Pacific Mercury will function as a Warwick division. Former's Thomas Organ operation becomes wholly-owned Warwick subsidiary headed by Pres. Joe Benaron, formerly Pacific Mercury pres. "With color TV coming of age, the outlook for set makers is promising although realization of their potential may take longer than some companies estimate," cautioned Oct. 30 "Financial World," adding: "After several false starts color TV finally is coming into focus. But whether this new medium will grow as rapidly as some set makers hopefully predict remains to be seen." Among "possible bottlenecks," magazine noted, are "production problems and high cost." Noting RCA's "rosy expectations" of $750 million industry color sales next year, "World" questioned: "Even assuming the industry solves its production problems, will the public buy color sets at the pace RCA predicts? The answer appears to lie in the area of cost, and there is some doubt that the price of color TV is right yet for a mass market. . . Barring a major breakthrough in the lab, the growth of color TV more likely will be an evolutionary rather than a revolutionary process." GE Credit Corp. has formed subsidiary GECC Leasing Corp. to lease industrial electronic & electrical products in all 50 states. C. G. Klock is pres, of leasing concern. Dividend news: Texas Instruments declared 25% stock dividend in addition to custonaary 20? quarterly cash dividend on common stock. Stock dividend certificates will be mailed Dec. 16 to holders of record Nov. 27. Cash payout is payable Dec. 13 to stock of record Nov. 13. TI also plans to increase annual cash dividend rate next year to $1 per share from 80? this year Wometco Enterprises declared a 20% stock dividend on its 779, 276 Class A shares and 672, 863 Class B shares, payable Dec. 23 to stock of record Dec. 2. Quarterly cash dividends of 15? & 5-1/2? also were declared on outstanding A & B shares, respectively, payable Dec. 16 to holders of record Dec. 2. After issuance of stock dividend, Wometco plans to pay cash dividends on outstanding stock at annual rate of 56? on Class A shares, 20? on Class B. . . Magnavox has increased quarterly cash dividend to 22-1/2? a common share from payable Dec. 14 to holders of record Nov. 25 Supervised In vestors Services, formerly TV Shares Management Corp. , declared semi-annual 20? dividend on common stock, payable Nov. 15 to holders of record Oct. 31 Stewart Warner declared 5% common stock dividend in addition to regular quarterly payout of 37-1/2?, both pa3rable Dec. 11 to stock of record Nov. 15. . . International Resistance declared year -end extra dividend of 5? per common share and special 2% stock distribution, in addition to regular 10? quarterly cash dividend. Quarterly and extra cash dividends are payable Nov. 29 to holders of record Nov. 15. Stock dividend will be distributed Dec. 20 to holders of record Nov. 15. "Corporate profits seem certain to reach a record high for all of 1963," concluded Oct. 31 "Wall St. Journal" after analysis of 514 corporations showed their combined 3rd-quarter earnings up 15. 2% to $2, 952, 474, 000 from $2,562,090,000 in 1962's July-Sept. period. Amonglarge industries anticipating continued gains into 4th quarter is electronics-electric group. Twenty-four firms analyzed in this group boosted 3rd-quarter earnings 14. 2% to$138,104,000 from $120,961,000. Twelve were broad-line companies, and their earnings rose 14.9% to $126, 123,000 from $109,781,000. Other 12 were specialty firms. Their profits were up 7.2% to $11,981,000 from $11, 180,000. Muntz TV, which closed its 1963 fiscal year Aug. 31 with record $11. 8 million sales (Vol. 3:43 pi 2), produced $10, 838, 869 of the volume from TV sales, $923,803 from stereo phonos amd service parts, $8,401 from miscellaneous income & interest. Comparative yearearlier figures: $10,660,860, $730,405, $10,023. Company' s balance sheet showed total current assets of $3, 748, 135 (including $649, 344 cash, $165, 121 govt, securities, $922, 599 trade accounts receivable) vs. $3, 151,329 ($501,506 cash, $215,247 securities, $891,591 receivables) Aug. 31, 1962. Total current liabilities were $1, 771, 375 vs. $1, 107, 230 a year earlier. Radio Shack stockholders will vote Nov. 12 on proposed financial reorganization of the retail & mail-order electronic parts distributing chain, now controlled by Tandy Corp. Among reorganization proposals: Offer of new common stock to present shareholders, followed by a public offer; issuance of new preferred stock; $4. 5 million 5-year loan. Radio Shack lost $4. 2 million on $14 million sales in its 1963 fiscal year ended last June 30. GE won "Financial World's" annual gold "Oscar" for best annual report presentation for 2nd successive year. Among silver award recipients: Metromedia. CBS won silver trophy for design & typography.