THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Thursday, July 21, 1994 TAG: 9407210517
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: BY PHIL MURRAY, STAFF WRITER
DATELINE: NEWPORT NEWS LENGTH: Short : 40 lines
Cost-cutting seems to be having the desired effect at nVIEW Corp.
The projection-equipment manufacturer said Wednesday it has posted its second straight profitable quarter since laying off 10 percent of its work force and taking an ax to other areas of the budget.
nVIEW reported a net income of $577,000 for the three-month period that ended June 30, up from $225,000 in the same quarter last year. For the year, nVIEW has earned $945,000, which comes after two years in the red.
``We're just trying to operate on good business fundamentals,'' said Joel A. Carney, nVIEW's senior vice president and general manager.
The boost in profits, however, hasn't come from a surge in sales. In the second quarter of 1994, revenues essentially were flat at $9.78 million. For the year, sales were up 8 percent.
Instead, the company has cut budgets - most notably nearly $1 million spent on marketing and promotion. Carney said nVIEW had found its marketing budget higher than the industry standard after comparing it with competitors' budgets.
nVIEW's stock closed Wednesday at 5 3/4, up 3/8.
``I'm pretty encouraged,'' said George Shipp, a stock analyst at Scott & Stringfellow Inc. in Norfolk. ``What we need now is for some of the new products to give sales a boost in the second half.''
nVIEW is continuing to work on ``private-label'' agreements to make products for other companies to sell under different brand names, Carney said. nVIEW makes equipment that projects images directly from a computer or video source onto a large screen. by CNB