UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[ x ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____________ to _____________
Commission File No. 0-19492
nVIEW Corporation
(Exact name of registrant as specified in its charter)
Virginia 54-1413745
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
860 Omni Boulevard, Newport News, Virginia
23606 (Address of principal executive office)
Registrant's telephone number, including area code: (757) 873-1354
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
[ X ] YES [ ] NO
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of November 1, 1997: 5,005,166 shares of common stock without
par value.
nVIEW CORPORATION AND SUBSIDIARIES
Quarterly Report on Form 10-Q for the
Quarter Ended September 30, 1997
Table of Contents
Page
PART I FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements
Condensed Consolidated Balance Sheets as of September 30, 1997
(unaudited) and December 31, 1996................................3
Condensed Consolidated Statements of Operations
for the Three Months Ended September 30, 1997
and 1996 (unaudited) and the Nine Months Ended
September 30, 1997 and 1996 (unaudited)............................4
Condensed Consolidated Statement of Shareholders'
Equity for the Nine Months Ended September 30,
1997 (unaudited)..................................................5
Condensed Consolidated Statements of Cash Flows for
the Nine Months Ended September 30, 1997 and
1996 (unaudited)..................................................6
Notes to Condensed Consolidated Financial Statements...............8
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operations.......10
PART I.FINANCIAL INFORMATION
Item 1. Financial Statements
nVIEW CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
Assets September 30, December 31,
1997 1996
---- ----
(Unaudited)
Current assets:
Cash and cash equivalents $710,076 $1,802,596
Receivables, net 4,304,415 9,057,646
Inventories (note 3) 8,424,964 11,997,760
Prepaid expenses 453,670 331,306
----------------- ------------------
Total current assets 13,893,125 23,189,308
Property and equipment, net 605,287 801,641
Other assets, net 139,240 191,388
----------------- ------------------
$14,637,652 $24,182,337
================= ==================
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $1,917,435 $5,890,860
Accrued expenses 774,768 989,605
----------------- ------------------
Total current liabilities 2,692,203 6,880,465
Shareholders' equity:
Common stock, no par value --- ---
Authorized 20,000,000 shares; 5,005,166
shares issued and outstanding at September 30,
1997 and December 31, 1996
Additional paid-in capital 25,060,978 25,060,978
Accumulated deficit (13,115,529) (7,759,106)
----------------- ------------------
Total shareholders' equity 11,945,449 17,301,872
----------------- ------------------
Commitments and contingencies (note 2)
$14,637,652 $24,182,337
================= ==================
See accompanying notes to condensed consolidated financial statements.
nVIEW CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------------------- ----------------------------------------
1997 1996 1997 1996
------------------ ---------------- ------------------ -------------------
Sales $3,464,537 $8,483,201 $15,825,381 $23,343,670
Cost of goods sold 5,245,767 6,580,394 15,571,554 18,217,339
------------------ ---------------- ------------------ -------------------
Gross profit (1,781,230) 1,902,807 253,827 5,126,331
------------------ ---------------- ------------------ -------------------
Marketing and promotion 841,632 792,886 2,429,720 2,900,501
Research and development 590,419 467,399 1,511,842 1,475,496
General and administrative 601,226 610,165 1,624,668 1,756,259
------------------ ---------------- ------------------ -------------------
Operating expenses 2,033,277 1,870,450 5,566,230 6,132,256
------------------ ---------------- ------------------ -------------------
Earnings (loss) from operations (3,814,507) 32,357 (5,312,403) (1,005,925)
Other income (expense):
Interest expense (35,318) (29,051) (92,105) (117,596)
Interest income 12,584 31,285 53,046 79,121
Miscellaneous (4,983) (5,745) (4,961) (5,498)
------------------ ---------------- ------------------ -------------------
(27,717) (3,511) (44,020) (43,973)
------------------ ---------------- ------------------ -------------------
Net earnings (loss) ($3,842,224) $28,846 ($5,356,423) ($1,049,898)
================== ================ ================== ===================
Weighted average number 5,005,166 4,936,416 5,005,166 4,921,105
of common and common
share equivalents outstanding
================== ================ ================== ===================
Earnings (loss) per share ($0.77) $0.01 ($1.07) ($0.21)
================== ================ ================== ===================
See accompanying notes to condensed consolidated financial statements.
nVIEW CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statement of Shareholders' Equity
(Unaudited)
Nine Months Ended September 30, 1997
Common Stock
-----------------------------------
Additional Total
Number of Paid-in Accumulated Shareholders'
Shares Amount Capital Deficit Equity
---------------- ------------- ----------------- ---------------- -----------------
Balance at
December 31, 1996 5,005,166 --- $25,060,978 ($7,759,106) $17,301,872
Net loss --- --- --- (5,356,423) (5,356,423)
---------------- ------------- ----------------- ---------------- -----------------
Balance at
September 30, 1997 5,005,166 --- $25,060,978 ($13,115,529) $11,945,449
================ ============= ================= ================ =================
See accompanying notes to condensed consolidated financial statements.
nVIEW Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended
September 30
1997 1996
----------------- -----------------
Cash flows from operating activities:
Net loss ($5,356,423) ($1,049,898)
Adjustments to reconcile net loss to net cash provided by
(used in) operating activities:
Depreciation and amortization 444,113 590,570
Loss on disposal of fixed assets 553 19,267
Loss on abandonment of patents 46,961 ---
Changes in assets and liabilities increasing (decreasing) cash:
Receivables, net 4,753,443 (1,783,023)
Inventories 3,572,796 (830,380)
Prepaid expenses (122,576) (42,078)
Income taxes receivable --- 508,277
Accounts payable (3,973,424) 3,458,409
Accrued expenses (214,837) (160,174)
----------------- -----------------
Total adjustments 4,507,029 1,760,868
----------------- -----------------
Net cash provided by (used in) operating activities (849,394) 710,970
----------------- -----------------
Cash flows from investing activities:
Additions to property and equipment (235,573) (272,603)
Purchase of patents and other assets (7,553) (8,638)
----------------- -----------------
Net cash used in investing activities (243,126) (281,241)
----------------- -----------------
Cash flows from financing activities:
Stock options exercised --- 168,700
----------------- -----------------
(Continued)
nVIEW Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows, Continued
(Unaudited)
Nine Months Ended
September 30
1997 1996
----------------- ----------------
Net increase (decrease) in cash and cash equivalents ($1,092,520) $598,429
Cash and cash equivalents at beginning of period 1,802,596 1,404,816
----------------- ----------------
Cash and cash equivalents at end of period $710,076 $2,003,245
================= ================
Supplemental disclosure of cash flow information:
Cash paid during the period for interest $127,519 $136,949
================= ================
Cash paid during the period for income taxes --- $40,326
================= ================
See accompanying notes to condensed consolidated financial statements.
nVIEW CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
1. The accompanying unaudited consolidated financial statements of nVIEW
Corporation (the "Company") have been prepared by the Company pursuant
to the instructions for Form 10-Q and, accordingly, certain information
and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles
have been condensed or omitted where permitted by regulation. In
management's opinion, the accompanying unaudited interim condensed
consolidated financial statements reflect all adjustments, consisting of
normal recurring accruals, necessary for a fair presentation of the
consolidated results of operations for the interim periods presented.
The consolidated results of operations for such interim periods are not
necessarily indicative of the results that may be expected for future
interim periods of for the year ended December 31, 1997. These interim
consolidated financial statements and the notes thereto should be read
in conjunction with the audited consolidated financial statements and
the notes thereto included in the Company's Annual Report on Form 10-K
for the year ended December 31, 1996.
2. Management of the Company has made a number of estimates and assumptions
relating to the reporting of assets and liabilities and the disclosure
of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reported period in conformity with generally accepted accounting
principles. Actual results could differ from those estimates. Management
believes that the estimates are reasonable.
3. Inventories at September 30, 1997, and December 31, 1996, consist of the
following:
September 30, December 31,
1997 1996
---- ----
Raw material $3,356,553 $6,734,966
Work in process 82,904 211,399
Finished goods 4,985,507 5,051,395
----------- -----------
Inventories $ 8,424,964 $11,997,760
=========== ===========
4. As of September 30, 1997, the Company was not in compliance with one of
the financial covenants required by the Company's demand loan and
security agreement with a bank. Subsequent to September 30, 1997, the
lender declined to waive the non-compliance but stated that it will
forbear from enforcing its rights and remedy under the agreement until
February 6, 1998, the expiration date of the revolving line of credit,
on the condition the Company enters into an acceptable forbearance
agreement. The terms of the forbearance agreement will include reducing
the revolving line of credit from $7 million to $2.5 million, and
provide that all new advances continue to be at the discretion of the
bank. No amounts had been advanced under the existing loan as of as of
the date of this filing.
The lender also informed the Company the term of the Loan and Security
Agreement will not be extended past February 6, 1998. While the Company
is currently exploring alternate financing and anticipates closing a new
financing agreement prior to the expiration of its existing line of
credit, there can be no assurance that it will be successful in doing
so.
5. In February 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 128, Earnings Per Share
(Statement 128). Statement 128 supersedes APB Opinion No. 15, Earnings
Per Share, and specifies the computation, presentation, and disclosure
requirements for earnings per share ("EPS") for entities with publicly
held common stock or potential common stock. Statement 128 was issued to
simplify the computation of EPS and to make the United States standard
more compatible with the EPS standards of other countries and that of
the International Accounting Standards Committee (IASC). It replaces
primary EPS and diluted EPS on the face of the income statement for all
entities with complex capital structures and requires a reconciliation
of the numerator and denominator of the basic EPS computation to the
numerator and denominator of the diluted EPS computation.
Basic EPS, unlike primary EPS, excludes all dilution and is computed by
dividing income available to common stockholders by the weighted average
number of common shares outstanding for the period. Diluted EPS, similar
to fully diluted EPS, reflects the potential dilution that could occur
if securities or other contracts to issue common stock were exercised or
converted into common stock or resulted in the issuance of common stock
that then shared in the earnings of the entity.
Statement 128 is effective for financial statements for both interim and
annual periods ending after December 15, 1997. Earlier application is
not permitted. After adoption, all prior period EPS data presented shall
be restated to conform with Statement 128. The Company does not expect
Statement 128 to have a significant impact on earnings per share.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
In addition to historical information, this report contains forward-looking
statements, which are subject to risks and uncertainties. Accordingly, the
Company's actual results could differ materially from those anticipated in these
forward-looking statements. Undue reliance should not be placed on these
forward-looking statements, which reflect management's analysis only as of the
date hereof.
The following discussion and analysis should be read in conjunction with the
Management's Discussion and Analysis included in the Company's Annual Report on
Form 10-K for the year ended December 31, 1996.
Results of Operations
The net loss for the first nine months of 1997 was $5.4 million, or $1.07 per
share, compared to a net loss of $1.0 million, or $.21 per share for the same
period of 1996. For the third quarter of 1997, the net loss was $3.8 million, or
$.77 per share, compared to net income for the third quarter of 1996 of $29
thousand, or $.01 per share.
Sales decreased 32% to $15.8 million for the first nine months of 1997 from
$23.3 million for the first nine months of 1996. The biggest component of this
change was a $6.8 million decrease in LCD panel products sold. The market for
panels has been replaced by portable projectors and as such, the Company is no
longer developing projection panels, but will continue to sell out its existing
inventory. For the third quarter of 1997, sales decreased 59% to $3.5 million
from $8.5 million for the third quarter of 1996. The primary component of this
change was a $3.5 million decrease in projector products sold in the third
quarter of 1997 compared with the third quarter of 1996.
As demonstrated above, a significant portion of the decline for the first nine
months of 1997 occurred in the third quarter and consisted of a 29% decline in
the average sales price of projectors, as well as a 40% decline in the volume of
projectors sold. These declines are part of a continuing trend in the Company's
traditional audio visual channels and can be attributed to the following
factors:
a. shorter product lives are creating excess inventories resulting in rapid
and significant reductions in the average sales prices of the Company's
current product lines;
b. the Company is continuing to sell older model VGA products at reduced
prices in an effort to reduce inventory levels on hand;
c. the lack of portability and other key features in the Company's existing
product line is reducing the volume of products sold in all channels;
d. a continued increase in the number of competitors in the portable
projector market is negatively impacting both the average sales prices
and volume of product sold.
In the Company's Original Equipment Manufacturers (OEM) channel, a decrease also
occurred in 1997 due to the winding down of the Company's private label
agreement with Polaroid Corporation. For the third quarter of 1997, sales to
Polaroid Corporation comprised 9% of the Company's sales as compared to 30% for
the third quarter of 1996. The Company does not anticipate any future sales to
Polaroid Corporation.
Also contributing to the decline in sales in 1997 was the Company's decision to
exit the computer distribution channel, due to the high marketing expenses
associated with the distribution contracts. This decision resulted in a 70%
decrease in sales to computer distributors for the first nine months of 1997
compared to the first nine months of 1996. In the third quarter of 1997, there
were no sales to computer distributors.
Gross profit as a percentage of sales was 2% for the nine months, and a negative
51% for the quarter ended September 30, 1997, compared to 22% in each of the
respective periods of 1996.
In a response to competitors' pricing and overall unfavorable market conditions,
the Company reduced prices on the majority of its product lines. This impacted
the Company's polysilicon VGA and SVGA projectors which are purchased from
Matsushita Corporation and sold under the nVIEW label. The Company also found it
necessary to reduce prices on its older SVGA Digital Light Processing (DLP)
projectors which were being outsold by the Company's newer DLP projector with
intelligent XGA compression. Finally, the Company was responding to the
anticipated release of new generation SVGA and XGA portable projectors scheduled
for the fourth quarter of 1997.
The decline in gross profit margins for both the nine months and quarter ended
September 30, 1997 was also due to a $1.8 million increase in the Company's
inventory reserve. This increase was required in order to reduce the inventory
carrying value to estimated net realizable value for certain of the products
discussed above, as well as others.
Operating expenses decreased 9% to $5.6 million (35% of sales) for the first
nine months of 1997 from $6.1 million (26% of sales) for the comparable period
of 1996. For the third quarter of 1997, operating expenses were $2.0 million
(59% of sales), up slightly from the $1.9 million (22% of sales) for the third
quarter of 1996.
Marketing and promotion expenses for the first nine months of 1997 decreased
$471 thousand from the same period of 1996. For the third quarter of 1997,
marketing and promotion expenses increased $49 thousand from the comparable
period of 1996. As a percentage of sales, marketing and promotion expenses were
15% and 12% for the first nine months of 1997 and 1996, respectively. For the
quarters ended September 30, 1997 and 1996, marketing and promotion expenses
were 24% and 9% of sales, respectively.
The $471 thousand decrease in sales and marketing expenses in the first nine
months of 1997 was the result of a decision made in the latter part of 1996 to
reduce the level of spending on advertising, due in part to increased OEM sales
during 1996, where product is sold and marketed under the customer's label.
The $49 thousand increase in sales and marketing expenses for the third quarter
of 1997 resulted from the net effect of the decrease in OEM sales to Polaroid
Corporation and the Company's decision to place more emphasis on the Company's
audio visual channel through increased marketing and sales support spending.
Research and development expenses were comparable for the first nine months of
1997 and 1996. For the third quarter of 1997, research and development expenses
increased $123 thousand from the third quarter of 1996. As a percentage of
sales, research and development expenses were 10% and 6% for the first nine
months of 1997 and 1996, respectively. For the quarters ended September 30, 1997
and September 30, 1996, research and development expenses were 17% and 6% of
sales, respectively.
The $123 thousand increase in research and development expenses in the third
quarter of 1997 is attributable to increased development costs relating to the
Company's new high end LCD-XGA fixed installation projector designed for the
home theater, board room and work station markets, scheduled for release in the
first quarter of 1998. The Company also incurred costs to develop the improved
video feature on its D700 series of DLP projectors. This improved video was
released for production early in the fourth quarter of 1997.
For the first nine months of 1997, general and administrative expenses decreased
$132 thousand from the first nine months of 1996. General and administrative
expenses were comparable for the quarters ended September 30, 1997, and
September 30, 1996. As a percentage of sales, general and administrative
expenses were 10% and 8% for the first nine months of 1997 and 1996,
respectively. For the quarters ended September 30, 1997 and September 30, 1996,
general and administrative expenses were 17% and 7% of sales, respectively.
The $132 thousand decrease in general and administrative expenses in the first
nine months of 1997 was comprised primarily of a $115 thousand payment received
in settlement of a suit filed against another company.
Other expenses were $44 thousand for the first nine months of both 1997 and
1996. For the third quarter of 1997, other expenses increased $24 thousand from
the comparable period of 1996. Lower interest income was earned in the third
quarter of 1997 and only partially offset interest expense incurred during the
same period. The lower interest income resulted from lower cash balances on hand
during that same time period.
Financial Condition
Total assets decreased from $24.2 million at December 31, 1996 to $14.6 million
at September 30, 1997. The majority of the decrease occurred in cash, accounts
receivable and inventories.
Cash and cash equivalents decreased to $710 thousand at September 30, 1997 from
$1.8 million at December 31, 1996. This decrease was caused by lower overall
sales in the first nine months of 1997 resulting in lower cash collections in
the third quarter of 1997. In addition, the Company purchased and paid for
additional polysilicon SVGA projectors from Matsushita Corporation during the
third quarter of 1997, thereby reducing cash.
Net receivables decreased by $4.8 million from December 31, 1996 to September
30, 1997, primarily as a result of decreased sales for the quarter ended
September 30, 1997 ($3.5 million) compared to the quarter ended December 31,
1996 ($11.2 million) and reduced receivable balances from computer distributors
and Polaroid Corporation.
Inventories decreased to $8.4 million at September 30, 1997 from $12.0 million
at December 31, 1996. The Company continues to sell older model products which
were produced in previous periods. Because certain portions of the Company's
inventory were sold at significantly reduced prices in the third quarter of
1997, the Company increased its inventory reserve by $1.8 million at September
30, 1997, also contributing to the decrease in inventories. Finally, the Company
reduced its purchases of DLP light engines and related components in the third
quarter of 1997, in response to decreased sales.
Current liabilities decreased 61% to $2.7 million at September 30, 1997 from
$6.9 million at December 31, 1996. The decrease resulted from reduced component
purchases discussed above.
On September 30, 1997, the Company had total working capital of $11.2 million as
compared to $16.3 million at December 31, 1996. The current ratio increased to
5.2 at September 30, 1997 from 3.4 at December 31, 1996. The increase is
primarily due to a decrease in current liabilities at a greater rate than the
corresponding decrease in current assets.
Shareholders' equity decreased to $11.9 million at September 30, 1997 from $17.3
million at December 31, 1996. The decrease is a result of the net loss incurred
in the first nine months of 1997.
Liquidity and Capital Resources
Cash on hand was sufficient to fund operations during the first nine months of
1997. Accordingly, the Company did not draw on its line of credit during this
period. The Company was not in compliance with one of the financial covenants
under its bank line of credit measured at September 30, 1997. Subsequent to
September 30, 1997, the lender declined to waive the non-compliance but stated
it will forbear from enforcing its rights and remedy under the agreement until
February 6, 1998, the expiration date of the revolving line of credit, on the
condition the Company enters into an acceptable forbearance agreement. Terms of
the forbearance agreement will include reducing the revolving line of credit
from $7 million to $2.5 million, and all new advances continue to be at the
discretion of the bank. The Company believes existing cash, cash generated from
on-going operations and the revolving bank line of credit will be adequate to
meet the anticipated operating and financing activities of the Company for the
immediate future.
The lender also informed the Company the term of the Loan and Security Agreement
will not be extended past February 6, 1998. While the Company is currently
exploring alternate financing and anticipates closing a new financing agreement
prior to the expiration of its existing line of credit, there can be no
assurance that it will be successful in doing so. No amounts had been advanced
under the existing loan as of the date of this filing.
Risk Factors
The following discussion of risk factors describes certain aspects of the
business environment in which the Company operates. These risk factors, along
with other information in this report, should be carefully considered by users
of this report.
The markets in which the Company operates are characterized by rapidly changing
technology, resulting in short product lives. Actual or anticipated product
releases by the Company or its competitors could cause customers to delay
purchases until the new products are available and/or to discontinue purchases
of existing products altogether. The Company's competitors may introduce
products which utilize new technologies to which the Company does not have
access. Any of these factors could have a material effect on the Company's
business and results of operations.
The Company's Diamond series projector products use a subassembly developed and
produced only by Texas Instruments ("TI"). The subassembly will be phased out of
production in the first half of 1998 and the Company will no longer develop
products based on that technology. The Company believes it will obtain
sufficient quantities of the subassembly to meet demand, prior to end of life of
this single source component. Additionally, the Company's new products in
development for 1998 release are based on alternate technologies, and as with
any developing technology, unknown circumstances outside the Company's control
could affect availability of critical components.
While the Company's DLP based projector has been successful in the marketplace,
the demand for it has declined. There can be no assurance that DLP will continue
to be successful, as increasing numbers of competitors introduce new products
and technologies and price competition intensifies.
A significant portion of the Company's shipments typically occur in the last
month of a quarter due to customers' ordering patterns, the timing of sales
promotions, component availability or technical challenges. These factors may
cause volatility in quarterly and annual results in future periods.
Revenue from the sale of products is recognized at the time of shipment to the
customer. The Company maintains a reserve for sales returns and allowances (the
"Reserve") based upon historical rates of returns. While the Company believes
its estimated Reserve is adequate, future returns could be greater than the
Reserve and may materially affect future results of operations.
The Company is continuing its efforts to reduce inventory levels and sell older
inventory. Price reductions of certain of the Company's older products have
resulted in lower gross margins. This trend is likely to continue as older
inventory continues to be liquidated and as the current products become less
attractive in the market place due to the introduction of new products by the
Company or its competitors.
At September 30, 1997, the Company was in default under some of its covenants in
its loan and security agreement evidencing a line of credit with a bank. The
lender declined to waive the noncompliance, but stated it will forebear from
enforcing its rights and remedies under the agreement until February 6, 1998,
the expiration date of the loan, on the condition that the Company enters into
an acceptable forbearance agreement. No amounts had been advanced under the loan
as of the date of this filing. Terms of the forebearance agreement will include
reducing the revolving line of credit from $7 million to $2.5 million, and all
new advances will continue to be at the discretion of the bank. The Company is
currently seeking alternative financing prior to the expiration of this loan
agreement, however, there can be no assurance that it will be able to do so.
The trading price of the Company's common stock has been and is expected to
continue to be subject to immediate and wide fluctuations due to factors both
within and outside of the Company's control. These factors include, but are not
limited to, the following: fluctuations in operating results or financial
position, availability of financing, new product introductions by the Company or
its competitors, product reviews by trade publications, estimates or statements
made by analysts regarding the Company or the industry and markets in which the
Company operates and stock market price fluctuations.
The number of both competitors and competing projector products increased
significantly during the past year, resulting in intense price competition and
lower margins. The Company's strategy is to shift its efforts away from the mass
market towards serving specialized markets that require innovation, such as the
Company's recently announced relationship with Runco International in the home
theater market and InFocus Systems and Hughes ELCAN in the high end fixed
installation CRT replacement market. There is no assurance that this strategy
will be successful.
SIGNATURE
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, thereunto duly authorized.
Dated: November 19, 1997
nVIEW CORPORATION
By: /s/ Angelo Guastaferro
-----------------------
Angelo Guastaferro
President, Chief Executive Officer
By: /s/ Jerry W. Stubblefield
-------------------------
Jerry W. Stubblefield
Chief Financial Officer