SANTA CLARA, Calif., April 25 /PRNewswire/ -- FVC.COM (Nasdaq: FVCX), the
world leader in broadband two-way video networking, today announced financial
results for the first quarter ended March 31, 2000. Revenues for the quarter
were $10.1 million, compared with revenues of $8.4 million reported in the
first quarter of 1999. The net loss for the current quarter was $4.0 million
or $0.23 per share, compared with a loss of $3.2 million or $0.20 per share in
the first quarter of 1999. The Company stated that the increased loss was
primarily due to higher product development, marketing and selling expenses,
including continued investment in its enterprise systems business as well as
the recently announced IP Click to Meet(TM) video services.
"Sales growth was primarily due to increased revenue from service provider
customers. In fact, sales to service providers more than quadrupled from a
year ago," said Rich Beyer, President and CEO. "We also strengthened our
balance sheet by reducing both inventory and receivables, enabling us to hold
cash constant from last quarter."
During the quarter the company announced several new service provider
customers, including Qwest Communications and wireless Internet provider
Global Pacific, the first customer from the recently-announced partnership
with fixed wireless infrastructure provider Adaptive Broadband. The Company
added new enterprise customers including France's Brittany region and
continued sales to its existing e-learning and e-justice customers. Other
milestones in FVC.COM's service provider business included the launch of its
wholesale two-way IP video service, Click to Meet(TM), a DSL trial with
Viagate, and an agreement with France Telecom to jointly develop a two-way
video player.
About FVC.COM
FVC.COM (Nasdaq: FVCX) is the world leader in broadband video networking,
providing services and systems to enable systems integrators and service
providers to deliver two-way video to their customers. FVC.COM is the world
leader in broadband video network systems with over 100 large installations in
the e-learning and e-medicine markets. In addition, FVC.COM's Click to
Meet(TM) is the industry's first video services solution for high quality,
two-way video calls and conferences over the broadband Internet using a web-
based video portal. Click to Meet provides the optimal platform to video-
enable a new generation of B2B, B2C and C2C web applications.
FVC.COM's strategic partners include Accord, Alcatel, Ameritech, Bell
Atlantic, British Telecommunications plc, Cisco Systems, Inc., EDS, Ezenia!,
France Telecom, Nortel Networks, Polycom, Qwest Communications, Shanghai
Telecom, Telstra, White Pine 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, 1999.
FVC. COM, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data; unaudited)
Three months ended
March 31
2000 1999
Revenues $10,083 $8,380
Cost of revenues 5,550 4,726
Gross profit 4,533 3,654
Operating expenses:
Research and development 2,681 2,405
Selling, general and administrative 5,844 4,713
Total operating expenses 8,525 7,118
Operating loss (3,992) (3,464)
Other income, net 93 226
Minority interest in
consolidated subsidiary (75) -
Net loss $(3,974) $(3,238)
Net loss per share:
Basic and diluted $(0.23) $(0.20)
Shares used to compute net
loss per share:
Basic and diluted 16,970 16,047
FVC.COM, INC.CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands; unaudited)
March 31, December 31,
2000 1999
ASSETS
Current assets:
Cash and cash equivalents $2,552 $997
Short-term investments 6,062 7,824
Accounts receivable 11,216 14,066
Inventory 7,039 8,104
Prepaids and other current assets 2,331 2,866
Total current assets 29,200 33,857
Property and equipment, net 2,672 2,880
Other assets 3,249 3,462
$35,121 $40,199
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $135 $143
Accounts payable 4,640 6,968
Accrued expenses 3,467 3,123
Deferred revenue 743 1,745
Total current liabilities 8,985 11,979
Long-term debt, net of current portion 74 85
Minority interest in consolidated
subsidiary 398 323
Stockholders' equity:
Common stock 17 17
Additional paid-in capital 66,655 65,015
Notes receivable from stockholders (130) (321)
Accumulated other comprehensive loss (26) (21)
Accumulated deficit (40,852) (36,878)
Total stockholders' equity 25,664 27,812
$35,121 $40,199
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, Chris West or Chris Wood of The Financial
Relations Board, 415-986-1591
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