Internet Video Systems Provider Achieves Seventh Consecutive Quarter of
Revenue Growth
SANTA CLARA, Calif., Oct. 14 /PRNewswire/ -- FVC.COM (Nasdaq: FVCX), a
leading provider of Next Generation Internet video applications, today
announced financial results for the third quarter and nine months ended
September 30, 1998.
Revenues for the quarter were $12.0 million, a 141 percent increase over
revenues of $5.0 million in the third quarter of 1997, and a 9 percent
increase over revenues of $11.0 million for the quarter ended June 30, 1998.
Net income for the quarter, excluding one-time charges for acquisitions, was
$1.2 million, or $0.07 per diluted share (on 17,290,000 average shares
outstanding, including the impact of options and warrants), compared with a
net loss of $1.7 million, or $0.53 per diluted share (on 3,163,000 average
shares outstanding) in the same quarter of the previous year. Profit for the
prior quarter was $121,000 or $0.01 per diluted share.
During the quarter, FVC.COM recorded a charge of $6.2 million for the
acquisition of ICAST and $1.0 million for the acquisition of a voice access
technology. Including these charges, the company's net loss for the quarter
was $6.0 million or $0.39 per diluted share (on 15,355,000 average shares
outstanding, excluding the impact of options and warrants).
Revenues for the nine months were $32.1 million, up 188 percent over
revenues of $11.1 million in the first nine months of 1997. Including the
one-time acquisition charges of $7.2 million, the net loss for the first nine
months of 1998 was $6.4 million, or $0.63 per diluted share (on 10,120,000
average shares outstanding, excluding the impact of options and warrants),
compared with a net loss of $4.2 million, or $1.45 per diluted share (on
2,908,000 average shares outstanding, excluding the impact of options and
warrants), for the comparable period in the previous year.
The company also reported that gross margin for the quarter increased to
49.7 percent, compared with 45.7 percent in the prior quarter.
"Our outstanding operating results reflect the growing understanding and
acceptance of Next Generation Internet video for important business and
educational applications," said Ralph Ungermann, president and CEO of FVC.COM.
"During the quarter, we made sales to customers in a number of our important
markets, such as telecommunications and health care enterprises, government
organizations, university systems and school districts."
According to Ungermann, deliveries were made to British Telecommunications
plc, France Telecom, British Airways, the United States Department of Justice,
and the California State School System. The Army National Guard continued to
install FVC.COM systems in its classrooms across the country; approximately
100 Guard sites now feature interactive broadband video capability, said
Ungermann.
"The Next Generation Internet, with its broadband infrastructure, is
required for the high quality, interactive applications that make networked
video a truly useful business tool," said Ungermann. "Our distribution and
network integration partners, such as Bell Atlantic Integration Network and
Lucent, continue with their rapid buildout of the NGI, and are making the
installation of FVC.COM equipment and systems a critical component of that
deployment."
FVC.COM also reported that as of September 30, 1998, cash and short term
investments totaled $29.5 million, and that working capital was $35.6 million.
About FVC.COM
FVC.COM is the leader in video applications over the Next Generation
Internet (NGI). The NGI is the new broadband Internet, being deployed by
service providers and enterprises for the integrated delivery of voice, video
and data applications. FVC.COM's products enable end-to-end video in a wide
range of room and desktop environments for video applications such as distance
learning, distance meetings, and distance medicine. Founded in 1993 by
technology pioneer Ralph Ungermann, FVC.COM designs, manufactures and supports
a full video networking product family that includes NGI access devices,
adapters, gateways and video storage servers.
FVC.COM's distribution and system integration partners include leading
telecommunication and networking companies throughout the world, such as
Ascend Communications (Nasdaq: ASND), Bell Atlantic Network Integration
(NYSE: BEL), British Telecommunications plc (NYSE: BTY), EDS (NYSE: EDS),
France Telecom (NYSE: FTE), IBM (NYSE: IBM), Lucent Technologies (NYSE: LU),
NEC (Nasdaq: NIPNY), and Nortel (NYSE: NT).
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 involve known and unknown
risks, uncertainties and other factors which may cause the actual results,
performance or achievements of the Company, 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 Company'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 the Company's
growth, consolidation and cost pressures in the video networking industry,
dependence on key employees and other risk factors referenced in the Company's
Registration Statement on Form S-1, File No. 333-38755, declared effective on
April 29, 1998.
Note: Third quarter earnings of $0.07 per diluted share exclude one-time
acquisition charges of $7.2 million.
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 Don Markley, general information, or
Kristi Larson, analyst contact, of Financial Relations Board,
415-986-1591
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