FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest
event reported): May 16, 1994
Zenith Electronics Corporation
(Exact name of registrant as specified in its charter)
Delaware 1-4115 36-1996520
(State or jurisdiction (Commission File (IRS Employer
of incorporation) Number) identification No.)
1000 Milwaukee Avenue
Glenview, Illinois 60025
(Address of principal executive offices) (Zip Code)
Registrant's telephone number,
including area code (708) 391-7000
Not applicable
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events.
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On May 16, 1994, Zenith Electronics Corporation issued a press
release, which is attached as Exhibit 20 hereto and is incorporated
by reference herein.
Item 7. Financial Statements, Pro forma Financial Information and Exhibits.
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(c) The following exhibits are included as part of this report:
Exhibit 20 - Zenith Electronics Corporation Press Release dated
May 16, 1994.
SIGNATURES
------------
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ZENITH ELECTRONICS CORPORATION
By: /s/ David S. Levin
--------------------------
David S. Levin, Secretary
Date: May 16, 1994
<PAGE>
Exhibit Index
Exhibit
Number Exhibit Description
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20 Press Release dated May 16, 1994
NEWS RELEASE Exhibit 20
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PHILIPS, ZENITH AND COMPRESSION LABS
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SIGN JOINT DEVELOPMENT AND MARKETING AGREEMENT
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Companies Create One-Stop Source For A New Generation Of
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Digital and Hybrid Digital/Analog Video-On-Demand Products
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NEW YORK, May 16, 1994 - Philips Consumer Electronics Company, Zenith
Electronics Corporation and Compression Labs, Inc. (CLI), have signed
an agreement to combine their efforts in offering cable operators,
telecommunications companies and other network providers essential signal
delivery products for full-service digital and analog networks.
With the products produced under this agreement, network providers will
be able to operate in both the digital and analog domains through open-
architecture, consumer-oriented decoders, and, for the first time, access
a common integrated network management and security system. The result
is a cost-effective solution offering simplified network operation and an
enhanced ability to extend the services of third-party information providers
into the network.
Zenith, Philips and CLI have agreed to combine their complementary
technologies, product development and marketing capabilities to design and
manufacture digital video-on-demand and hybrid digital/analog set-top
terminals. Network providers will be able to bring a wide range of
programming into the home, such as video-on-demand, video games, home
shopping and other video services, with two-way interactive communication
available. High-data-rate digital transmissions over fiber and cable
will be delivered to the new set-top decoders.
The agreement comes as leading network providers are selecting the products
they will deploy for revolutionary interactive entertainment and information
services. It also comes at a time when Philips, Zenith and other consumer
electronics manufacturers are preparing for the ultimate migration of the
features of set-top decoders into future digital television sets and VCRs.
"Our extensive global engineering, marketing, manufacturing and support
infrastructures, together with those of Zenith and Compression Labs, make
the group a powerhouse that understands what consumers and network providers
need in this emerging business," says Bill Kennedy, senior vice president,
Philips Digital Videocommunication Systems, a Philips Consumer Electronics
unit.
"The group bring a unique vision to this emerging marketplace based on
open standards, powerful solutions for a family of set-top decoder products
and a look ahead to the advanced digital color television sets of the future,"
says Dean DeBiase, vice president, corporate marketing, Zenith Electronics
Corporation.
Jim Lakin, vice president, sales and marketing of CLI's Broadcast Products
Group, says, "The combination of Zenith's digital VSB and two-way analog
cable technologies with the Philips/CLI MPEG-2 digital set-top system
provides, for the first time, an economical, open architecture for the
delivery of clear-channel and digital video-on-demand in the full service
network."
A New Family Of Set-Top Decoders
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The allied group, with years of experience incorporating digital features
into consumer electronics products, will offer a broad family of set-top
devices ranging from analog, to hybrid digital/analog, to all-digital
designs as well as ADSL boxes.
Of great benefit to network providers will be the combination of MPEG-2
(Moving Picture Experts Group) world-standard digital decoder technology
from Philips and CLI with the robust Vestigial Sideband (16-VSB) transmission
and real-time two-way technologies from Zenith. The integration of MPEG-2
with 16-VSB digital transmission creates a new hybrid digital/analog decoder
configuration capable of receiving today's analog cable transmissions and
future MPEG-2 digital transmissions within a single set-top unit. MPEG and
VSB are key features of the Digital HDTV Grand Alliance high-definition
television system expected to be adopted next year as the U.S. broadcast
standard by the Federal Communications Commission.
Set-top decoders designed by the three companies will offer the industry's
most consumer-oriented interface, including Zenith's down-loadable software
functions allowing network providers to alter in-home functionality from the
headend, the superior graphics of Philips' CD-i system, and Microware's
"DAVID" multimedia operating system based on OS-9 technology.
As integral parts of full-service, end-to-end networks, the digital set-top
models will be compatible with video servers currently under development by
a number of manufacturers, including Oracle Corporation, IBM Corporation,
Digital Equipment Corporation and Hewlett-Packard Company. They also will
be compatible with CLI's line of real-time MPEG-2 encoders, and with
Zenith's line of headend equipment including analog scrambling systems
and digital VSB modulators.
Philips, Zenith and CLI will employ their quality-driven, high-volume
manufacturing resources to offer customers reliable and flexible supplies
of decoders.
As digital building blocks are incorporated into a new generation of
television sets, the decoders themselves are expected to become less
expensive, smaller "set-back" boxes.
Leadership In Developing Television Technologies
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The three companies are leaders in consumer electronics, cable television
and digital compression.
Philips and Zenith are two of the largest color television manufacturers in
North America. In addition to broad cable experience, the two companies
bring advanced consumer electronics design, low-cost manufacturing and
extensive consumer marketing expertise to this agreement. And, they are
well-positioned to serve the needs of consumers and network providers alike
as the functions of digital set-top boxes migrate into future consumer
electronics products to be produced by the entire industry.
In January 1994, Philips and CLI entered into an agreement to develop
a line of MPEG-2 digital set-top decoders which were subsequently selected
by Bell Atlantic for deployment in their ADSL and wideband networks.
CLI technology had been previously chosen by Bell Atlantic for its
video-on-demand trial in the Spring of 1993. Zenith digital set-top
boxes based on MPEG-2 and VSB technology were selected earlier this
month for a NYNEX video-on-demand digital trial.
CLI brings more than 17 years of experience as a premier supplier of
real-time digital video encoding and decoding systems. CLI offers
MPEG-based encoders and decoders that allow a wide variety of customers
to economically deliver real-time broadcast and non-real-time video-
on-demand services over twisted pair, coaxial cable, optical fiber
and satellite.
Compression Labs Inc. (CLI) (NASDAQ/NMS:CLIX) is a leader in the rapidly
expanding video compression market. The company's Compressed Digital
Video (CDVTM) technology digitizes and compresses full-motion video signals
for practical and economical transmission over telephone, satellite, fiber
and cable networks. With headquarters in San Jose, Calif., CLI develops
and markets products and services for group video conferencing, broadcast
video and personal video.
Philips Consumer Electronics Company (PCEC), Knoxville, Tenn., is home
to the domestic offices of Philips Digital Videocommunication Systems,
provider of system solutions for signal delivery in the full service
network. Philips' network capabilities include Philips Broadband Networks,
Inc., Manlius, New York, a major supplier of video signal delivery equipment
to the cable television industry. The inventor of digital audio CD technology,
Philips has led in the development of MPEG-based, compressed full motion,
full screen digital video, already available on five-inch discs to buyers of
its CD-i system. The marketer of Magnavox and Philips consumer and
professional electronics in North America, Philips is among the world's
largest developers and manufacturers of television, video and audio products.
Zenith and Philips are members of the Digital HDTV Grand Alliance.
Zenith Electronics Corporation (NYSE:ZE), based in Glenview, Ill., has been
a leader in electronics for 75 years. Zenith's core business -- consumer
electronics and network systems -- is at the center of the company's digital
strategy, which includes interactive television, digital cable, video dial-
tone, networking and HDTV systems. With extensive expertise in analog
scrambling systems, real-time two-way cable systems, digital transmission
technologies and computer networks, Zenith has more than 15 years of
experience in the network systems area.
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For more information, contact:
CLI Public Relations Philips Public Relations Zenith Public Relations
Joyce Strand Jon Kasle John Taylor
(408)922-4610 (615)521-3274 (708)391-8181
Mia Bradway or
(408)428-6735 David Elliott Zenith Investor Relations
(404)880-5276 Bill McNitt
CLI Investor Relations (708)391-7713
Susan Upcher
(408)922-5523
