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): April 20, 1995
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)
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Item 5. Other Events.
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On April 20, 1995, Zenith Electronics Corporation issued a
press release announcing first quarter 1995 results, 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 exhibit is included as part of this report:
Exhibit 20 - Zenith Electronics Corporation Press Release dated
April 20, 1995.
SIGNATURES
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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: April 20, 1995
<PAGE>
Exhibit Index
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Exhibit
Number Exhibit Description
- ------- --------------------
20 Press Release dated April 20, 1995.
[LOGO]
NEWS RELEASE
FOR IMMEDIATE RELEASE
---------------------
ZENITH REPORTS FIRST-QUARTER RESULTS
GLENVIEW, Ill., April 20, 1995 -- Zenith Electronics Corporation today
reported a net loss for the first quarter of 1995 of $24.3 million, or 53
cents per share, compared with a first-quarter 1994 net loss of $11.9
million, or 32 cents per share. Total revenues in the quarter declined
by $35 million to $262 million from $297 million in 1994.
As disclosed in February, first-quarter 1995 results were affected by
lower color television shipments to customers in Mexico and in the United
States. First-quarter results also were affected by selling price
reductions of $9 million compared with the same period a year ago.
Domestic industry color TV sales to dealers were flat in the quarter
versus a year ago. Zenith's U.S. color TV shipments were affected by
higher-than-normal retail inventories and, as disclosed earlier, by start-
up problems associated with a new finished-goods warehouse early in the
(MORE)
<PAGE>
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quarter (problems that have since been resolved). In Mexico, Zenith and
industry TV sales to dealers were curtailed in the quarter due to the
devaluation of the peso. While the Mexican TV market is expected to recover
slowly, Zenith expects to benefit from the peso devaluation for full-year
1995.
Sales of Network Systems products -- set-top boxes, cable modems and other
equipment primarily for cable TV operators -- were up by almost 50 percent
compared with the first quarter of 1994, reflecting the continuing strength
of Zenith's high-performance analog set-top units.
Sales for non-core businesses dropped to $2 million from $7 million as
power supplies and computer monitors have been phased down.
Major progress was made during the first quarter in completing the
integration of the Digital HDTV Grand Alliance high-definition television
system. The system, which includes Zenith's proven vestigial sideband
digital transmission technology, was delivered for final laboratory testing
at the end of March. The Federal Communications Commission is expected to
adopt the Grand Alliance system as the digital broadcast standard by late
1995.
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MEDIA CONTACT: John Taylor (708) 391-8181
INVESTOR CONTACT: Bill McNitt (708) 391-7713
<PAGE>
ZENITH ELECTRONICS CORPORATION
STATEMENT OF CONSOLIDATED OPERATIONS
(In millions, except per share amounts)
(Unaudited)
Three Months Ended
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April 1, April 2,
1995 1994*
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Net sales $ 262.1 $ 297.1
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Costs, expenses and other:
Cost of products sold 248.5 276.3
Selling, general and administrative 26.6 23.8
Engineering and research 11.9 11.4
Other operating expense (income), net (4.5) (4.9)
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Operating income (loss) (20.4) (9.5)
Gain on asset sales, net -- 1.0
Interest expense (4.1) (3.4)
Interest income .2 --
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Income (loss) before income taxes (24.3) (11.9)
Income taxes (credit) -- --
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Net income (loss) $ (24.3) $ (11.9)
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Net income (loss) per share of
common stock $ (.53) $ (.32)
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Average shares outstanding 46.0 37.7
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* Certain prior amounts have been reclassified to conform with the
presentation currently used.
