Electronic edge; how U.S. firms passed Japan in race to create advanced television; switch to digital technology for high-definition sets abruptly changed game; a look at Zenith's strategy

Article Abstract:

US companies take the lead in development of high-definition television (HDTV) technology away from Japanese companies. The rise of digital technology has given a strategic advantage to US companies, while Japanese firms rely on analog communications. In 1987, the US Federal Communications Commission (FCC) began a competition to select the best HDTV technology that the agency will adopt as a US standard by the end of 1993. The leading competitors are partners Zenith Electronics Corp and AT&T, and The Massachusetts Institute of Technology. Zenith's entry into the HDTV race was the result of research into cable television transmission, and AT&T came on board to develop compression techniques and apply its semiconductor technologies. The Zenith-AT&T team is scene as the top contender in the competition. Japanese firm NHK Broadcasting Corp has entered the competition, but few believe they have a chance of developing the winning HDTV technology.

Telephone communications, exc. radio, Japan, T, Industrial research, Digital communications, American Telephone and Telegraph Co., Research and Development, Competition, Digital Communication

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Zenith faces liquidity crunch in wake of price wars; TV maker aims for turnaround, puts hopes in high-definition systems

Article Abstract:

Television maker Zenith Electronics Corp faces a record loss for 1992. The company's sales fell from $1.41 billion in 1990 to $1.32 billion in 1991. Net losses were $65.2 million in 1990 and $51.6 million in 1991. In 3rd qtr 1992, Zenith lost $41.8 million, of which $23 million was a restructuring charge to cover job cuts. Zenith reports in a regulatory filing that it faces 'serious liquidity problems' if it cannot boost its net worth or renegotiate a credit agreement with Bank of New York Co that requires Zenith to maintain a minimum net worth of $229 million. On Sep 26, 1992, Zenith's net worth was only $230 million. Zenith is pinning its hopes on a joint effort with AT and T to invent a standard for high-definition television (HDTV). The Federal Communications Commission is slated to choose a winning HDTV system in 1993.

Company Profile, Financial Stability

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Zenith still faces troubled future after sale of unit

Article Abstract:

Zenith Electronics Corp faces fierce competition in consumer electronics, plus an uncertain future in high-definition television, despite the planned sale of its computer division to Compagnie des Machines Bull of France for up to $635 million. The sale should help Zenith's recent record of losses, but most of it will pay off short-term and much of long-term debt, plus be a savings in interest from the debts. The company expects to use $460 million to reduce debt and other obligations after taxes and expenses of $49 million. About $115 million in long-term debt would be left, but also a cash balance of around the same amount. A proxy statement to shareholders reveals a healthier, but still troubled, company.

Computer industry, Consumer electronics, Profits, Divestiture, Divestment, Profit, Financial Report, High-Definition Television

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