Video Systems Provider Continues Quarterly Growth
SANTA CLARA, Calif., Jan. 28 /PRNewswire/ -- FVC.COM (Nasdaq: FVCX), a
leading provider of Next Generation Internet video applications, today
announced financial results for the fourth quarter and year ended December 31,
1998.
Revenues for the quarter were $12.3 million, a 61 percent increase over
revenues of $7.6 million in the fourth quarter of 1997, and a 2.5 percent
increase over revenues of $12.0 million for the quarter ended September 30,
1998. Net income for the quarter was $1.2 million, or $0.07 per diluted share
(on 17.5 million shares outstanding), compared with a net loss of $100,000 in
the same quarter of the previous year.
Revenues for the year were $44.4 million, up 136 percent over revenues of
$18.8 million in 1997. Net income for the year was $1.1 million (excluding a
one-time charge relating to the acquisition of ICAST Corporation), or
$0.07 per diluted share (on 16.0 million shares outstanding), compared with a
net loss of $4.3 million for 1997. Including the acquisition charge, the net
loss for the year was $5.1 million, or $0.45 per diluted share.
"We are pleased with the progress we made during the quarter on a number
of fronts," said Chief Executive Officer Rich Beyer. "We had a strong quarter
for booking orders, with a book to bill ratio of 1.2, and we maintained solid
profitability despite a significant ramp up of marketing and sales
activities."
"We continue to work with leading telecommunications, networking and
system integration companies as our distribution partners," said Beyer. "We
announced an advanced interactive video network for telemedicine and
conferencing at VA Healthcare System of Ohio with Nortel Networks as our
partner, and also announced Next Generation Internet video networks at two
Northern California School Districts with Lucent and Nortel as our partners.
In addition, we were chosen by the City of New York to implement
videoconferencing throughout their largest agency, the Human Resources
Administration."
According to Beyer, the Company also increased its operations in Asia,
Europe and the Middle East in the fourth quarter to support the growing
worldwide demand for broadband video and voice applications in education,
government and business. This expansion brings the total number of FVC.COM
international offices to 14. The company also began shipping its I-Studio,
the first product resulting from the ICAST acquisition, which provides
streaming video for IP networks.
FVC.COM also reported that as of December 31, 1998, cash and short term
investments totaled $26.7 million, and that working capital was $36.7 million.
The 1998 results include a $6.2 million acquisition charge for in-process
research and development previously reported in connection with the Company's
acquisition of ICAST Corporation during the third quarter. Since then,
Securities and Exchange Commission staff have made comments giving different
guidelines for the determination of write offs of in-process research and
development. The Company is currently evaluating what impact, if any, the new
guidelines will have on its in-process research and development charge for the
ICAST acquisition. Should a reduction of the $6.2 million charge be required,
a retroactive adjustment to the Company's 1998 financial statements, including
a corresponding increase in the amount of goodwill to be amortized in future
periods, would be required.
About FVC.COM
FVC.COM is the leader in video applications over the Next Generation
Internet (NGI). The NGI is the new broadband Internet, being deployed by
service providers and enterprises for the integrated delivery of voice, video
and data applications. FVC.COM's products enable end-to-end video in a wide
range of room and desktop environments for video applications such as distance
learning, distance meetings, and distance medicine. Founded in 1993 by
technology pioneer Ralph Ungermann, FVC.COM designs, manufactures and supports
a full video networking product family that includes NGI access devices,
adapters, gateways and video storage servers.
FVC.COM's distribution and system integration partners include leading
telecommunication and networking companies throughout the world, such as
Ascend Communications, Bell Atlantic Network Integration, British
Telecommunications plc, EDS, France Telecom, IBM, Lucent Technologies, NEC,
and Nortel.
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 involve known and unknown
risks, uncertainties and other factors which may cause the actual results,
performance or achievements of the Company, 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: the Company's limited operating history and variability of
operating results, market acceptance of video technology, dependence on ATM
backbone technology and the Next Generation Internet, potential inability to
maintain business relationships with distributors and suppliers, rapid
technological changes, competition in the video networking industry, the
importance of attracting and retaining personnel, management of the Company's
growth, consolidation and cost pressures in the video networking industry,
dependence on key employees and other risk factors referenced in the Company's
Registration Statement on Form S-1, File No. 333- 38755, declared effective on
April 29, 1998.
FVC.COM
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data; unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
1998 1997 1998 1997
(unaudited)
Revenues $ 12,296 $7,648 $44,351 $18,771
Cost of revenues 5,181 3,989 22,027 10,466
Gross profit 7,115 3,659 22,324 8,305
Operating expenses:
Research and development 2,507 1,671 9,463 5,420
Selling, general and
administrative 3,488 2,019 11,722 6,997
Acquired in-process research
and development -- -- 6,204 --
Total operating expenses 5,995 3,690 27,389 12,417
Operating income (loss) 1,120 (31) (5,065) (4,112)
Other income (expense), net 138 (69) (42) (216)
Income (loss) before taxes $1,258 $(100) $(5,107) $(4,328)
Provision for income taxes 40 -- 40 --
Net income (loss) $1,218 $(100) $(5,147) $(4,328)
Basic net income (loss) per share $0.08 $ (0.03) $ (0.45) $(1.44)
Diluted net income (loss) per share $0.07 $ (0.03) $ (0.45) $(1.44)
Shares used in basic net income (loss)
per share calculation 15,767 3,481 11,541 3,012
Shares used in diluted net income (loss)
per share calculation 17,522 3,481 11,541 3,012
FVC.COM
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands; unaudited)
December 31, December 31,
1998 1997
ASSETS
Current Assets:
Cash and cash equivalents $10,315 $2,500
Short-term investments 16,433 --
Accounts receivable, net 11,221 2,469
Inventory 6,053 4,178
Prepaid expenses and other current assets 1,241 627
Total current assets 45,263 9,774
Property and equipment, net 2,400 1,043
Other assets 2,578 287
$50,241 $11,104
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
Borrowings under short-term credit facilities $-- $1,306
Notes payable 1,300 --
Current portion of long-term debt 137 848
Accounts payable 5,045 4,141
Accrued liabilities 1,937 1,326
Deferred revenue 112 262
Total current liabilities 8,531 7,883
Long-term debt, net of current portion 228 1,312
Stockholders' equity: -- 8
Convertible Preferred Stock
Common Stock 16 5
Additional paid-in capital 61,649 17,267
Notes receivable from stockholders (502) (837)
Accumulated deficit (19,681) (14,534)
Total stockholders' equity 41,482 1,909
$50,241 $11,104
SOURCE FVC.COM
 back to top
CONTACT:
James Mitchell, Chief Financial Officer, of
FVC.COM, 408-567-7204; or general, Don Markley, or analysts,
Kristi Larson, of Financial Relations Board, 415-986-1591
|
