SANTA CLARA, Calif., Feb. 6 /PRNewswire-FirstCall/ --
First Virtual Communications, Inc. (Nasdaq: FVCX), a premier provider of rich
media web conferencing and collaboration solutions, today announced financial
results for the quarter ended December 31, 2002. Revenue for the quarter was
$5.0 million, compared with $7.4 million in the same quarter of 2001. The
principal reason for the lower revenue was a significant decline in shipments
of legacy ATM network equipment, offset in part by increased sales of the
Company's Click-to-Meet(TM) software products.
The net loss for the quarter was $14.5 million, or $0.36 per share,
including a non-cash charge of $9.9 million to reduce the carrying value of
goodwill and intangible assets pursuant to SFAS 142 and SFAS 144. This
compares with a net loss of $6.6 million, or $0.20 per share, in the fourth
quarter of 2001.
"While I am disappointed to report declining revenue this quarter, I am
encouraged to see that more than 60% of our revenue came from sales of our
strategic products," stated Jonathan Morgan, First Virtual Communications'
Acting President and Chief Executive Officer. "I am also encouraged by greater
industry and customer recognition of our strategic products as the premier
products for rich media web conferencing."
Management will discuss the Company's fourth quarter financial results
during its quarterly conference call at 5:00 p.m. EST today. To participate,
please call 800-218-8862 or 303-262-2075 at least five minutes prior to the
start of the call. A live simulcast and replay of the conference call will be
available through First Virtual Communications at http://www.fvc.com. If you are
unable to participate on the call, a replay will be available through February
13th by dialing 800-405-2236 pass code #523217.
About First Virtual Communications
Headquartered in Santa Clara, California, First Virtual Communications is
a premier provider of next generation web conferencing and collaboration
solutions. It delivers award winning integrated communications solutions that
address the needs of business people who need to work together remotely to
collaborate, train, demonstrate or sell. The Company has helped to define
IP-based communications by pushing the boundaries of conferencing for a better
user experience, easier enterprise deployment and a potentially greater return
on investment. The Company's products provide business quality communication
by supporting a wide range of industry standards. The Company's solutions
integrate seamlessly with existing tools and methodologies, such as email and
web browsing, while extending the advantages of instant messaging and
collaboration environments, such as MSN Messenger and Microsoft Exchange. The
Company's innovative solutions are deployed in over 1,200 customer sites
worldwide, including Fortune 500 companies, government agencies and service
providers. Additional information about First Virtual Communications can be
found on the web 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 First Virtual Communications, 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 success of and timely release of Click to Meet 3.0, the
continued increase in sales of the Company's Click to Meet(TM) and MCU
products, First Virtual Communications' variability of operating results,
market acceptance of rich media and Web conferencing technology, potential
inability to maintain business relationships with integrators, distributors
and suppliers, rapid technological changes, competition and consolidation in
the video networking industry, the importance of attracting and retaining
personnel, and other risk factors referenced in First Virtual Communications'
public filings with the Securities and Exchange Commission, including the
Company's report on Form 10-Q for the quarter ended September 30, 2002.
NOTE: All trademarks are recognized.
First Virtual Communications, Inc.
Condensed Consolidated Balance Sheets
(in thousands; unaudited)
December 31, December 31,
2002 2001
ASSETS
Current assets:
Cash and cash equivalents $8,352 $6,946
Short-term investments 83 2,438
Accounts receivable 4,080 6,365
Inventory 613 3,188
Prepaids and other current assets 406 1,227
Total current assets 13,534 20,164
Property and equipment, net 2,197 3,183
Other assets 293 322
Intangible assets, net 3,736 14,489
$19,760 $38,158
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $150 $36
Accounts payable 1,192 3,268
Accrued liabilities 4,801 5,561
Deferred revenue 6,656 2,936
Total current liabilities 12,799 11,801
Long-term debt, net of current portion 188 --
Stockholders' equity:
Common stock 40 33
Additional paid-in capital 118,531 113,437
Accumulated other comprehensive
income (loss) (210) 153
Accumulated deficit (111,588) (87,266)
Total stockholders' equity 6,773 26,357
$19,760 $38,158
First Virtual Communications, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data; unaudited)
Three months ended Twelve months ended
December 31, December 31,
2002 2001 2002 2001
Revenue $5,032 $7,377 $24,414 $27,661
Cost of revenue 1,339 4,681 8,379 20,550
Gross profit 3,693 2,696 16,035 7,111
Operating expense:
Research and development 2,410 2,690 9,945 12,573
Sales and marketing 2,680 3,369 9,588 11,565
General and administrative 3,200 3,224 11,045 13,045
Acquisition and other
non-recurring charges 9,894 320 9,894 2,468
Total operating expense 18,184 9,603 40,472 39,651
Operating loss (14,491) (6,907) (24,437) (32,540)
Other income, net (18) 57 115 665
Minority interest in
consolidated subsidiary -- 244 -- 274
Net loss $(14,509) $(6,606) $(24,322) $(31,601)
Basic and diluted net loss
per share $(0.36) $(0.20) $(0.64) $(1.26)
Shares used in computing
basic and diluted net loss
per share 40,367 33,328 38,153 25,156
SOURCE First Virtual Communications, Inc.
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Related links:
http://www.fvc.com
CONTACT:
Truman Cole, Chief Financial Officer of First
Virtual Communications, +1-408-567-7200, or tcole@fvc.com
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