SANTA CLARA, Calif., July 25 /PRNewswire/ -- FVC.COM (Nasdaq: FVCX), the
world leader in broadband video networking, today announced financial results
for the second quarter ended June 30, 2000. Revenues for the quarter were
$10.8 million, compared with $10.6 million in the quarter ended June 30, 1999.
The net loss for the current quarter was $3.3 million or $0.19 per share,
compared with a loss of $2.0 million or $0.12 per share in the second quarter
of 1999.
For the six months ended June 30, 2000, revenues were $20.9 million
compared to $19.0 million for the first six months of 1999. The loss for the
first six months of the current year was $7.3 million or $0.43 per share
compared to a loss of $5.2 million or $0.33 per share in the six months ended
June 30, 1999.
"Our second quarter results were consistent with our expectations, showing
strong growth in our service provider business," said Ralph Ungermann,
President and CEO of FVC.COM. "In the first half of the year, overall revenue
from service providers grew to $4.1 million, an increase of 167% compared with
the first half of 1999. We also have seen strong interest in Click to
Meet(TM), with close to 20 pilots underway with broadband Internet service
provider partners worldwide and our first win in a major enterprise customer."
FVC.COM is the first to offer two-way video and related streaming
solutions managed by a common video portal, Click to Meet(TM), that operate
across multiple network technologies, including IP, ATM and the PSTN. Click
to Meet(TM) is available as a systems solution for enterprises and service
providers, and as a service available from the industry's first operational
broadband Video ASP through FVC.COM's growing list of service provider
partners.
Ungermann assumed the CEO reins at the Company in July, replacing Rich
Beyer who resigned to pursue another career opportunity. In June, the Company
closed a $27.4 investment from Vulcan Ventures, Inc., the investment
organization of Paul G. Allen. Under the terms of the investment, Vulcan will
appoint a representative to the Company's Board of Directors.
During the quarter the Company launched the VAN2, an MPEG-2 based full-
motion, two-way video room system for enterprise customers and announced that
Electronic Data Systems, a key integrator of the Company's products, placed an
order for $2.5 million of equipment for distance learning installations at the
Army National Guard.
During the quarter the Company also achieved a number of successes in its
video services business.
-- The Company signed a definitive agreement with Qwest Communications
International Inc. to support Qwest's IP-based videoconferencing
solution.
-- RCN Corporation selected FVC.COM's Click to Meet(TM) two-way video
services to pilot over its broadband cable network.
-- The Company announced an agreement with Polycom to integrate Polycom's
ViaVideo with Click to Meet to extend the availability of high-quality
IP-based two-way video solutions to the desktop.
-- The Company launched its Click to Meet(TM) Jump Start Program for
service providers, with Connect2 and NextWeb as the first ISP and CLEC
to sign up for the program to support their rollout of video services.
At the end of June, Frost & Sullivan, a noted market research firm,
awarded the Company its 2000 Market Engineering Award for Business Development
Strategy.
About FVC.COM
FVC.COM (Nasdaq: FVCX) is the world leader in broadband video networking,
providing services and systems to enable service providers to deliver two-way
video to their customers. 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 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/A for the fiscal year ended
December 31, 1999.
FVC.COM, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except per share data; unaudited)
June 30, December 31,
2000 1999
ASSETS
Current assets:
Cash and cash equivalents $603 $997
Short-term investments 29,570 7,824
Accounts receivable 14,951 14,066
Inventory 7,359 8,104
Prepaids and other current assets 1,628 2,866
Total current assets 54,111 33,857
Property and equipment, net 2,543 2,880
Other assets 2,966 3,462
$59,620 $40,199
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $124 $143
Accounts payable 5,354 6,968
Accrued liabilities 4,856 3,123
Deferred revenue 1,133 1,745
Total current liabilities 11,467 11,979
Long-term debt, net of current portion 56 85
Minority interest in consolidated subsidiary 349 323
Stockholders' equity:
Series A convertible preferred stock - -
Common stock 17 17
Additional paid-in capital 92,052 65,015
Notes receivable from stockholders (130) (321)
Accumulated other comprehensive loss (4) (21)
Accumulated deficit (44,187) (36,878)
Total stockholders' equity 47,748 27,812
$59,620 $40,199
FVC.COM, Inc.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2000 1999 2000 1999
Revenues $ 10,772 $ 10,624 $ 20,855 $ 19,004
Cost of Revenues 5,810 5,537 11,360 10,263
Gross Profit 4,962 5,087 9,495 8,741
Operating expenses:
Research and development 3,034 2,582 5,715 4,987
Selling, general and
administrative 5,504 4,658 11,348 9,371
Total operating expenses 8,538 7,240 17,063 14,358
Operating loss (3,576) (2,153) (7,568) (5,617)
Other income, net 209 142 308 368
Minority interest in
consolidated subsidiary 32 (7) (49) (7)
Net loss $(3,335) $(2,018) $(7,309) $(5,256)
Net loss per share:
Basic and diluted $ (0.19) $ (0.12) $ (0.43) $ (0.33)
Shares used to compute net
loss per share:
Basic and diluted 17,244 16,235 17,093 16,141
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
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