Video Networking Company Grows 26% From First Quarter
SANTA CLARA, Calif., July 15 /PRNewswire/ -- FVC.COM (Nasdaq: FVCX), a
leader in enterprise video networking, today announced financial results for
the second quarter and six months ended June 30, 1999.
Revenues for the quarter were $10.6 million, a 26% increase over revenues
of $8.4 million for the first quarter of 1999. Revenues for the second
quarter of 1998 were $11.0 million. The net loss for the second quarter of
1999 was $2.0 million, or $0.12 per share (on 16,235,348 shares outstanding),
a 37% improvement on the loss of $3.2 million, or $0.20 per diluted share (on
16,047,000 shares outstanding) in the immediate prior quarter. Net income in
the second quarter of 1998 was $121,000, or $0.01 per diluted share.
Revenues for the six months were $19.0 million, compared with revenues of
$20.0 million in the first six months of 1998. The net loss for the six
months was $5.3 million or $0.33 per share (on 16,141,000 shares outstanding),
compared with a net loss of $371,000, or $0.05 per diluted share, for the same
period last year.
"We are pleased with our return to growth and with our improved financial
results," said FVC.COM's Chief Executive Officer Richard Beyer. "We are
continuing to lead the implementation of interactive video and related
streaming video applications over the Internet and broadband networks in the
education, government and service provider markets. We also continued to
enhance our product line and to broaden our strategic partnerships and
distribution."
According to Beyer, the Company's new V-Locator, introduced in June,
allows broadband service providers to offer a near turnkey video system or
service offering to their enterprise customers. "We are working closely with
several service providers to enable interactive video over their IP networks,
and to help them market this capability to the mainstream business sector.
The V-Locator, in conjunction with FVC.COM's broad product line, is key to
penetrating the enormous service provider market."
The company also introduced the V-Gate 4000, a gateway between the
emerging IP/Ethernet standard, ATM, and the traditional ISDN standard. The
V-Gate 4000 protects customers' investments in existing interactive video
equipment by allowing them to connect this equipment to broadband networks.
According to Beyer, "FVC.COM is solving one of our customers' biggest
challenges -- how to implement multiple video standards on one network. The
V-Gate 4000 is the only gateway that allows seamless interactive video among
all major types of endpoints."
This week the Company also announced a relationship with Polycom to bundle
and distribute the two companies' products to enterprise customers. "The
combination of FVC.COM's video networking systems and Polycom's market-leading
video endpoints brings cost-effective video to enterprises worldwide,"
explains Beyer.
The Company also reported that as of June 30, 1999, cash and cash
equivalents totaled $12.2 million, and working capital was $29.2 million.
About FVC.COM
FVC.COM, founded in 1993 by technology pioneer Ralph Ungermann, is the
world leader in enterprise video networking. FVC.COM manufactures and
supports a broad family of interactive video, streaming video and
multi-service access products designed for high-quality video delivery.
Integrated with voice and data, these products enable applications such as
distance learning, corporate communications, virtual meetings and telemedicine
to be delivered over broadband IP and legacy networks.
FVC.COM's OEM, distribution, and system integration partners include Bell
Atlantic Network Integration, British Telecommunications plc, EDS, France
Telecom, IBM, Lucent Technologies, NEC, Nortel Networks, Telstra 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
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 FVC.COM's growth, consolidation and cost
pressures in the video networking industry, dependence on key employees 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, 1998.
FVC. COM, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data; unaudited)
Three months ended Six months ended
June 30, June 30,
1999 1998 1999 1998
Revenues $10,624 $10,991 $19,004 $20,033
Cost of revenues 5,537 5,973 10,263 10,805
Gross profit 5,087 5,018 8,741 9,228
Operating expenses:
Research and development 2,582 1,987 4,987 3,871
Selling, general and
administrative 4,658 2,730 9,371 5,347
Total operating expenses 7,240 4,717 14,358 9,218
Operating income (loss) (2,153) 301 (5,617) 10
Other income (expense), net 142 (180) 368 (381)
Minority interest in
consolidated subsidiary (7) -- (7) --
Net income (loss) $(2,018) $121 $(5,256) $(371)
Net income (loss) per share:
Basic $(0.12) $0.01 $(0.33) $(0.05)
Diluted $(0.12) $0.01 $(0.33) $(0.05)
Shares used to compute net income
(loss) per share:
Basic 16,235 10,597 16,141 7,504
Diluted 16,235 15,478 16,141 7,504
FVC.COM, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands; unaudited)
June 30, December 31,
1999 1998
ASSETS
Current assets:
Cash and cash equivalents $800 $10,315
Short-term investments 11,420 16,433
Accounts receivable 12,599 11,221
Inventory 11,981 6,053
Prepaids and other current assets 2,412 1,241
Total current assets 39,212 45,263
Property and equipment, net 2,938 2,400
Other assets 3,512 3,502
$45,662 $51,165
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $-- $1,300
Current portion of long-term debt 135 137
Accounts payable 5,246 5,045
Accrued expenses 2,456 1,937
Deferred revenue 2,509 3,905
Total current liabilities 10,346 12,324
Long-term debt, net of
current portion 160 228
Minority interest in
consolidated subsidiary 395 --
Stockholders' equity:
Common stock 17 16
Additional paid-in capital 62,963 61,649
Notes receivable from stockholders (401) (502)
Accumulated other comprehensive loss (12) --
Accumulated deficit (27,806) (22,550)
Total stockholders' equity 34,761 38,613
$45,662 $51,165
SOURCE FVC.COM
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Related links:
http://www.fvc.com
CONTACT:
James Mitchell, Chief Financial Officer of
FVC.COM, 408-567-7204; or general information, Don Markley, or
analyst contact, Kristi Larson, both of The Financial Relations
Board, 415-986-1591
NOTE TO EDITORS: For more information on FVC.Com, at no cost,
please call 1-800-PRO-INFO (U.S.) or 908-544-2850 (int'l), ticker
symbol FVCX
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