SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
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 17, 1995
General Instrument Corporation
(Exact name of registrant as specified in its charter)
Delaware 1-5442 13-3575653
(State or other (Commission File (I.R.S. Employer
jurisdiction of No.) Identification
incorporation) No.)
181 West Madison Street, Chicago, Illinois 60602
(Address of principal executive office) (Zip Code)
(312) 541-5000
(Registrant's telephone number, including area code)
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Item 5 Other Events
The Registrant hereby incorporates by reference the
description of the matters set forth in its press release dated
April 17, 1995 (such press release being Exhibit 1 attached
hereto).
Item 7 Financial Statements and Exhibits
(c) Exhibits
1 Registrant's press release dated April 17, 1995
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.
GENERAL INSTRUMENT CORPORATION
By: /S/Thomas A. Dumit
-------------------------
Thomas A. Dumit
Vice President and General
Counsel
DATE: April 17, 1995
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EXHIBIT INDEX
No. Exhibits
1 The Registrant's press release dated
April 17, 1995
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EXHIBIT 1
CONTACT:
Karen Kane
312-541-5011
FOR IMMEDIATE RELEASE
GENERAL INSTRUMENT CORPORATION REPORTS
RECORD FIRST QUARTER 1995 RESULTS
FIRST QUARTER SALES UP BY 41% OVER 1994;
ORDERS UP BY 25% OVER 1994
______________________________________________________________
CHICAGO, ILLINOIS -- (April 17, 1995) -- General Instrument
Corporation (NYSE: GIC) today reported record first quarter
financial results. Orders, backlog, sales, operating income and
net income before income taxes all reached record-high levels in
the first quarter of 1995.
Sales for the quarter ended March 31, 1995 increased 41%, to $609
million, from $433 million in the first quarter of 1994.
Operating income increased 12%, to $87 million, from $78 million
in the comparable 1994 period.
First quarter 1995 income before income taxes was $74 million, an
increase of 16% from the first quarter of 1994. Net income was
$57 million ($.42 per fully diluted share) in the first quarter
of 1995, compared to $51 million ($0.40 per fully diluted share)
in the first quarter of 1994. Excluding the one-time impact of
VideoCipher pirate conversion sales in the first quarter of 1994,
net income increased 66% and fully diluted earnings per share
increased 50% in the first quarter of 1995.
Order input was $700 million in the quarter, up 25% from the
first quarter of 1994. Backlog at March 31, 1995 was $749
million, up 17% from the comparable 1994 quarter.
"Building on a record year in 1994, General Instrument posted our
highest revenue and operating income to date by delivering cost-
effective broadband communications solutions to our customers
around the globe," said Richard S. Friedland, president and chief
operating officer. "And with order input and backlog reaching
sequential all-time high levels in the quarter, the company has
built significant momentum. Our domestic and international
businesses remain strong, as we pursue rapidly growing
opportunities to serve new and existing cable television,
telephone, and programmer customers throughout the world."
GI recorded sales at all-time high levels in each business
segment in the first quarter of 1995. Cable TV product
sales were up 24% over first quarter 1994 levels. In
the first quarter of 1995, satellite system sales and orders
increased 87% and 151%, respectively, over the comparable
1994 quarter. The broad-scale deployment of GI's DigiCipher
technology into consumers' homes continued as GI shipped
approximately 290,000 direct -to -home digital satellite
consumer receivers during the quarter to PRIMESTAR
Partners, a consortium of cable companies. Global demand
for power rectifiers and protection devices continued to
fuel growth of Power Semiconductor Division sales and orders,
which were up 33% and 83%, respectively, over first quarter 1994.
GI continued to achieve significant growth in international sales
of cable TV electronics and CommScope cables in the quarter.
International sales of these products in the first quarter of
1995 increased 61% over the comparable 1994 quarter. These
international sales represented 32% of GI's worldwide cable TV
sales in the first quarter of 1995.
During the first quarter, GI took a significant step in
broadening its product offerings with an investment in
Next Level Communications. GI and Next Level Communications
are jointly developing switched digital solutions for the
integrated delivery of video, voice and data over
fiber-to-the-curb distribution networks such as those being
planned by several Regional Bell Operating Companies. GI is now
positioned to provide cost-efficient solutions to our customers'
needs as they plan to deploy a wide variety of analog and digital
networks using hybrid fiber/coaxial, wireless cable, satellite
direct-to-home and switched digital architectures.
In March, GI was selected to supply network equipment, featuring
CFT 2200 advanced analog terminals and DigiCable digital
terminals, for the first three sites of GTE's planned hybrid
fiber/coaxial cable network. GI is working with AT&T Network
Systems to bring advanced services to GTE's customers in these
new video dialtone networks.
During the first quarter of 1995, GI's DigiCipher technology
continued to gain worldwide acceptance as the industry standard
for the transmission and decoding of digital broadband signals.
During the quarter, GI's customers installed an additional 40
channels of digital encoder capacity using DigiCipher's satellite
compression system for a cumulative total of 390 digital video
channels operating on more than 110 DigiCipher satellite systems
around the globe. The expanding program choices being enabled by
DigiCipher's satellite compression system have been a driving
force in GI's rapid sales growth to date of cable TV electronics
and cables to international customers building cable and wireless
subscription television systems.
General Instrument Corporation is a world leader in developing
technology, systems and product solutions for the interactive
delivery of video, voice and data.
####
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<TABLE>
GENERAL INSTRUMENT CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited - In Thousands, Except
Earnings Per Share)
<CAPTION>
Three Months
Ended
March 31,
-------------------
1995 1994
--------- --------
<S> <C> <C>
NET SALES $608,717 $432,521
--------- --------
OPERATING COSTS AND EXPENSES:
Cost of sales 417,885 283,369
Selling, general and
administrative 64,032 39,124
Research and development 33,659 26,015
Amortization of excess of cost
over fair value of net assets
acquired 6,176 6,421
--------- --------
Total operating costs and
expenses 521,752 354,929
--------- --------
OPERATING INCOME 86,965 77,592
Other expense, net (74) (1,065)
Interest expense, net (13,028) (12,894)
--------- --------
INCOME BEFORE INCOME TAXES AND
CUMULATIVE EFFECT OF A CHANGE
IN ACCOUNTING PRINCIPLE 73,863 63,633
Provision for income taxes (16,807) (10,732)
--------- --------
INCOME BEFORE CUMULATIVE EFFECT
OF A CHANGE IN ACCOUNTING PRINCIPLE 57,056 52,901
Cumulative effect of a change in
accounting principle - (1,917)
--------- --------
NET INCOME $57,056 $50,984
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Fully diluted earnings per share $0.42 $0.40
========= ========
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