SANTA CLARA, Calif., Jan. 23 /PRNewswire/ -- FVC.COM (Nasdaq: FVCX), a
leader in rich media communications infrastructure, today announced financial
results for the fourth quarter ended December 31, 2000. Revenues for the
quarter were $10.2 million, compared with revenues of $13.0 million for the
quarter ended December 31, 1999. The net loss for the current quarter was
$6.1 million or $0.35 per share, compared with a loss of $7.9 million or $0.47
per share in the fourth quarter of 1999.
For the twelve months ended December 31, 2000, revenue was $40.0 million
compared to $45.7 million in 1999. The loss for the full year was
$18.8 million, or $1.09 per share, compared to a loss of $14.3 million, or
$0.87 per share in 1999.
"This was a difficult quarter, but one in which we made substantial
progress," said Ralph Ungermann, President and CEO. "We delivered sequential
revenue growth and received customer confirmation that Click to Meet is the
right product at the right time. Revenue from Click to Meet grew 200%, and
totaled $1.8 million, up from $600,000 in the third quarter of 2000. While
growing revenue, we also strengthened our balance sheet by improving our days
sales outstanding in receivables from 93 in the third quarter to 88 in the
fourth quarter and reducing inventories by $1.2 million."
The Company recorded an $850,000 valuation adjustment to inventories in
the fourth quarter to reflect the lower demand expected for some of our
products in 2001. Excluding this non-cash charge to costs of revenues, gross
margins would have been 45.0% and the net loss for the quarter would have been
$5.3 million, or $0.30 per share. In the fourth quarter of 1999, the Company
recorded a non-recurring charge of $6.3 million.
"Although we remain optimistic about prospects for 2001 and beyond, we
also recognize that given the state of the economy and the financial markets,
we need to take more actions to achieve profitability," Ungermann said.
"Therefore, this week we have reduced our workforce by about 20% or 40 people.
With this, and other expense control actions, we intend to reduce our
quarterly spending by approximately $1.5 million from the fourth Quarter 2000
levels. A one-time charge relating to this action will be recorded in our
earnings for the first quarter of 2001. We are refining our estimate of the
charge based on our actions this week and future plans for some of our product
lines."
FVC.COM continues to execute on its strategy to bring industry leading e-
collaboration solutions to the enterprise market. In November 2000, FVC.COM
announced the integration of WebEx web collaboration tools into Click to Meet,
the company's web-based portal for two-way video communications. In December
2000, FVC.COM announced that Wind, Italy's second largest network operator and
a joint venture of Enel SpA and France Telecom, has chosen Click to Meet for
broadband video conferencing services. Also in the fourth quarter, the
Company announced an alliance with Saudi Business Machines and an agreement
with Saudi Aramco, the global leader in the petroleum industry, to deliver
rich media communications solutions.
This month, FVC.COM announced a procurement agreement with AT&T for the
Click-to-Meet platform, further demonstrating that Click to Meet is being
chosen by industry leaders for video conferencing across multiple network
technologies, a cornerstone in the delivery of rich media communication
services.
About FVC.COM
FVC.COM (Nasdaq: FVCX) is a leader in rich media communications
infrastructure, providing systems and services that enable system integrators
and service providers to deliver an integrated suite of collaboration
applications to its enterprise customers. FVC.COM also delivers solutions
directly to corporate and public sector enterprises. FVC.COM's flagship
product, Click to Meet(TM), is the industry's communications platform for high
quality, face-to-face e-collaboration. It is designed to seamlessly integrate
video and audio telephony, data collaboration, and streaming across IP, ISDN,
DSL, Frame Relay and ATM networks. Click to Meet provides the optimal
platform for delivering a new generation of video enabled B2B web
applications, for commerce, distance learning, telemedicine, federal and state
governments, and the judiciary.
FVC.COM's strategic partners include Accord, Adaptive Broadband, Alcatel,
British Telecommunications plc, China Telecom, Cisco Systems, Inc., CUseeMe
Networks, EDS, Ezenia!, France Telecom, Ideal Technology Solutions, Nortel
Networks, Polycom, Qwest Communications, SBC Communications Inc., Shanghai
Telecom, Telstra, Verizon Communications, Wind 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,
FVC's recent launch of its broadband video services offering, market
acceptance of video technology, FVC.COM's dependence on ATM backbone
technology, potential inability to maintain business relationships with
telecommunications carriers, distributors and suppliers, 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, as amended,
for the fiscal year ended December 31, 1999.
FVC.COM, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data; unaudited)
(Unaudited)
Three months ended Twelve months ended
December 31, December 31,
2000 1999 2000 1999
Revenues $10,183 $13,046 $40,011 $45,700
Cost of revenues 6,456 11,529 $22,831 28,851
Gross profit 3,727 1,517 17,180 16,849
Operating expenses:
Research and development 3,500 2,578 $12,517 10,170
Selling, general and
administrative 6,730 6,916 $24,507 21,633
Total operating expenses 10,230 9,494 $37,024 31,803
Operating loss (6,503) (7,977) $(19,844) $(14,954)
Other income, net 412 182 $1,187 646
Minority interest in consolidated
subsidiary (18) (90) $(130) (20)
Net loss $(6,109) $(7,885) $(18,787) $(14,328)
Net loss per share:
Basic and diluted $(0.35) $(0.47) $(1.09) $(0.87)
Shares used to compute net loss per
share:
Basic and diluted 17,337 16,792 17,205 16,433
FVC.COM, Inc.
Condensed Consolidated Balance Sheet
(in thousands, unaudited)
December 31, December 31,
2000 1999
ASSETS
Current assets:
Cash and cash equivalents $198 $997
Short-term investments 23,730 7,824
Accounts receivable 9,937 14,066
Inventory 6,912 8,104
Prepaids and other current
assets 871 2,866
Total current assets 41,648 33,857
Property and equipment, net 2,815 2,880
Other assets 2,478 3,462
$46,941 $40,199
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term
debt $80 $143
Accounts payable 5,122 6,968
Accrued liabilities 3,574 3,123
Deferred revenue 1,143 1,745
Total current liabilities 9,919 11,979
Long-term debt, net of current
portion 39 85
Minority interest in consolidated
subsidiary 253 323
Stockholders' equity:
Series A Convertible Preferred
Stock - -
Common stock 17 17
Additional paid-in capital 92,168 65,015
Notes receivable from
stockholders - (321)
Accumulated other comprehensive
income (loss) 210 (21)
Accumulated deficit (55,665) (36,878)
Total stockholders' equity 36,730 27,812
$46,941 $40,199
SOURCE FVC.COM
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Related links:
http://www.fvc.com
CONTACT:
Randy Acres, Chief Financial Officer of
FVC.COM, 408-567-7254, or email, racres@fvc.com
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