Revenue Shortfall Due to a Major Service Provider Contract Not Completed
SANTA CLARA, Calif., Jan. 6 /PRNewswire/ -- FVC.COM (Nasdaq: FVCX), a
leader in broadband video networking, today announced preliminary financial
results for the fourth quarter ended December 31, 1999.
The Company said that preliminary financial data indicates that revenues
for the fourth quarter ending December 31, 1999 were in the range of
$13 - $14 million and a net loss in the range of $1.0 - $1.5 million, or
$0.06 - $0.09 per share, is anticipated. Management had previously indicated
expectations for sequential revenue growth of about 10% over the $13.8 million
in revenue reported for third quarter ended September 30, 1999. The Company
attributed the shortfall in revenue to a significant contract from a service
provider that was anticipated in December, but was not completed.
"Although we are very disappointed that we did not meet our revenue
objective for the quarter, we are absolutely convinced that we are executing
on the right strategy by focussing our efforts on selling to the service
provider market," said Richard Beyer, FVC.COM's Chief Executive Officer. "We
are seeing clear indications that this is a robust market for our video
systems and service offerings. Our sales to service providers in the fourth
quarter grew approximately 10% over the previous quarter even with this delay,
and have shown strong sequential growth throughout the past year."
The Company said that final results will be announced on Tuesday, January
25 leader in broadband video networking, designs,
manufactures and supports a wide range of high quality two-way and streaming
video systems and service offerings that enable applications such as web based
video calls, conferences, mail, and events. These services are designed to
video-enable a broad range of Internet commerce portals.
FVC.COM's strategic partners include Accord, Alcatel, Ameritech, Shanghai
Telecom, Bell Atlantic, British Telecommunications plc, Cisco Systems, Inc.,
EDS, France Telecom, Nortel Networks, Polycom, Telstra, Whitepine Software,
and other leading companies worldwide. Further information about the company
is available at http://www.fvc.com .
Cautionary Statement
Except for the historical information contained herein, this news release
contains forward-looking statements, including, without limitation, statements
containing the words, "believes," "anticipates," "expects" and words of
similar import. Such forward-looking statements have known and unknown risks,
uncertainties and other factors that may cause the actual results, performance
or achievements of FVC.COM, or industry results, to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking statements. Such factors include, among others:
FVC.COM's limited operating history and variability of operating results,
market acceptance of video technology, dependence on ATM backbone technology,
potential inability to maintain business relationships with distributors,
suppliers, telecommunications carriers, rapid technological changes,
competition in the video networking industry, the importance of attracting and
retaining personnel, management of FVC.COM's growth, consolidation and cost
pressures in the video networking industry, and other risk factors referenced
in FVC.COM's public filings with the Securities and Exchange Commission,
including the company's report on Form-10 K for the fiscal year ended
December 31, 1998.
SOURCE FVC.COM
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Related links:
http://www.fvc.com
CONTACT:
Truman Cole, Chief Financial Officer of
FVC.COM, 408-567-7229, or General Information, Chris West of The
Financial Relations Board, 415-986-1591
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