SANTA CLARA, Calif., April 24 /PRNewswire Interactive News Release/ --
First Virtual Communications (Nasdaq: FVCX), a leader in rich media
communications infrastructure, today announced financial results for the first
quarter ended March 31, 2001. Revenues for the quarter were $4.4 million,
compared with revenues of $10.1 million for the quarter ended March 31, 2000.
The net loss for the current quarter was $8.3 million or $0.48 per share,
compared with a net loss of $4 million or $0.23 per share in the first quarter
of 2000.
"This was a difficult quarter, and we are certainly disappointed with the
results," said Ralph Ungermann, President and CEO. "While we saw a dramatic
decline in revenues, we feel that this is a temporary setback, due in large
part to the slowdown in the economy and declining infrastructure spending,
which affected our ATM product sales. We remain confident in the opportunities
of the rich media communications market and will continue to pursue our long-
term strategy to capture those opportunities."
"Although we are optimistic about our prospects for the future, 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. "A one-
time charge of approximately $400,000 related to our January workforce
reduction, is included in our first quarter spending, and we continue to focus
on reducing operating expenses and improving operating efficiencies."
First Virtual Communications continues to execute on its strategy to bring
industry leading e-collaboration solutions to the enterprise and service
provider markets. In April 2001, First Virtual Communications announced an
alliance agreement with EDS. Under that agreement, the Company's flagship
offering, Click to Meet(TM), will deliver rich media communications services
to the EDS portfolio of Federal government clients.
The Company said that management will address the financial results in
greater detail at the time of the first quarter earnings release on Tuesday,
April 24, 2001. A conference call has been scheduled to begin at 2:00 p.m.
PDT and will last for approximately one hour. Please dial 703-871-3022 at
least five minutes prior to the start time to participate on the call.
Investors have the opportunity to listen to the conference call live on the
Internet at the Company's website at http://www.fvc.com , under Investor
Relations - by clicking on the webcast icon. Investors should go to the
website a few minutes early, as it may be necessary to download audio software
to hear the conference call. To do so, investors should click on the Real
Player icon and follow directions from there. A replay of the conference call
will be available through the Company's website for 7 days or via phone at
703-925-2435, passcode #5114077 through May 1, 2001.
About First Virtual Communications
First Virtual Communications, Inc. (Nasdaq: FVCX) is a leader in rich
media communications solutions, providing systems and services that enable
system integrators and service providers to deliver an integrated suite of
collaboration applications to its enterprise customers. First Virtual
Communications also delivers solutions directly to corporate and public sector
enterprises. The Company's flagship product, Click to MeetTM, 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, and ATM
networks. Click to Meet(TM) 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.
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," "is confident" 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: First Virtual Communications'
variability of operating results, First Virtual Communications' recent launch
of its broadband video services offering, market acceptance of video
technology, First Virtual Communications' dependence on ATM backbone
technology, potential inability to maintain business relationships with
telecommunications carriers, distributors and suppliers, rapid technological
changes, competition and consolidation in the video networking industry, the
importance of attracting and retaining personnel, management of First Virtual
Communications' growth, the risk that the merger with CUseeMe will not be
completed as anticipated and that the two companies may not be successfully
integrated, and other risk factors referenced in First Virtual Communications'
public filings with the Securities and Exchange Commission, including the
company's report on Form-10K for the year ended December 31, 2000.
First Virtual Communications, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data; unaudited)
(Unaudited)
Three months ended Three months ended
March 31 March 31
2001 2000 2001 2000
Revenues $4,382 $10,083 $4,382 $10,083
Cost of revenues 2,587 5,550 $2,587 5,550
Gross profit 1,795 4,533 1,795 4,533
Operating expenses:
Research and development 3,986 2,681 $3,986 2,681
Selling, general and
administrative 6,454 5,844 $6,454 5,844
Total operating expenses 10,440 8,525 $10,440 8,525
Operating loss (8,645) (3,992) $(8,645) $(3,992)
Other income, net 316 93 $316 93
Minority interest in consolidated
subsidiary (2) (75) $(2) (75)
Net loss $(8,331) $(3,974) $(8,331) $(3,974)
Net loss per share:
Basic and diluted $(0.48) $(0.23) $(0.48) $(0.23)
Shares used to compute net loss
per share:
Basic and diluted 17,414 16,970 17,429 16,970
First Virtual Communications, Inc.
Condensed Consolidated Balance Sheets
(in thousands; unaudited)
(Unaudited)
March 31, December 31,
2001 2000
ASSETS
Current assets:
Cash and cash equivalents $11,433 $7,077
Short-term investments 6,984 16,851
Accounts receivable 4,348 9,937
Inventory 10,410 6,912
Prepaids and other current
assets 753 871
Total current assets 33,928 41,648
Property and equipment, net 2,607 2,815
Other assets 2,192 2,478
$38,727 $46,941
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term
debt $56 $80
Accounts payable 4,205 5,122
Accrued liabilities 4,170 3,574
Deferred revenue 1,494 1,143
Total current liabilities 9,925 9,919
Long-term debt, net of current
portion 73 39
Minority interest in consolidated
subsidiary 253 253
Stockholders' equity:
Series A Convertible Preferred
Stock - -
Common stock 17 17
Additional paid-in capital 92,208 92,168
Accumulated other
comprehensive income 247 210
Accumulated deficit (63,996) (55,665)
Total stockholders' equity 28,476 36,730
$38,727 $46,941
SOURCE First Virtual Communications
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Related links:
http://www.fvc.com
CONTACT:
Randy Acres, Chief Financial Officer of First
Virtual Communications, 408-567-7254, or racres@fvc.com
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