SANTA CLARA, Calif., Oct. 19 /PRNewswire/ -- FVC.COM (Nasdaq: FVCX), a
leader in broadband video networking, today announced financial results for
the third quarter and nine months ended September 30, 1999.
    Revenues for the quarter were $13.7 million, 28.5% higher than revenues of
$10.6 million in the second quarter of 1999 and 13.5% above the $12.0 million
reported in the third quarter of 1998.  The net loss for the current quarter
was $1.2 million or $0.07 per share, a 41% improvement from the loss of
$2.0 million or $0.12 per share in the prior quarter.   The Company reported a
loss of $4.5 million or $0.29 per share in the third quarter of 1998.
    For the nine months ended September 30, the Company recorded revenues of
$32.7 million, compared with $32.1 million in the first nine months of 1998.
The net loss for the nine-month period was $6.4 million, or $0.39 per share,
compared with a net loss for the nine months in 1998 of $4.9 million.   In
1998, both the three-month and nine-month periods included acquisition charges
of $4.7 million.
    "We are pleased with our continuing revenue growth and progress towards
profitability," said FVC.COM's Chief Executive Officer Richard Beyer.  "In
addition to healthy growth in our existing vertical markets, we've seen
escalating growth in sales to telecommunications carriers during the year.
Sales of FVC.COM equipment to telcos accounted for more than $3 million this
quarter, proof that we are delivering on the strategy we set forth early this
year to partner with carriers to deliver video services to their customers."
    During the quarter, the company participated in the first public
demonstration of its telecommunications services at the Networld + Interop
networking tradeshow in Atlanta.  On the heels of that demonstration, FVC.COM
announced its first partner for these broadband video services, Bell Atlantic.
Using FVC.COM products, Bell Atlantic will deliver video services throughout
the $55 million Access New Jersey network.  A strategic initiative by Governor
Christine Whitman, the network is expected to reach 600,000 students
throughout the state's schools by the end of 1999.  The New Jersey deployment
will serve as a model for FVC.COM as it rolls out video services with other
large telecommunications providers.
    The Army National Guard, one of FVC.COM's largest customers, continued to
expand its distance learning network utilizing FVC.COM's complete line of
video networking equipment.  During the quarter the National Guard added its
112th video-enabled classroom to deliver videoconferencing, video on demand,
and video broadcasts to soldiers in 53 states and territories.

    About FVC.COM
    FVC.COM (Nasdaq: FVCX), the world leader in broadband video networking,
designs, manufactures and supports a wide family of products for real-time
interactive video, streamed video and broadband access. Designed for high-
quality video delivery integrated with voice and data, these products enable
applications such as video calls, video conferences, video mail, and
conference overflow and video events.  FVC.COM has an installed base of 20,000
broadband video seats worldwide.
    FVC.COM's OEM, distribution, and system integration partners include Bell
Atlantic Network Integration, British Telecommunications plc, Cisco Systems,
Inc., 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,
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, 1998.


                                FVC.COM, INC.
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
               (in thousands, except per share data; unaudited)

                                Three months ended        Nine months ended
                                 September 30                September 30
                                   1999      1998         1999         1998

    Revenues                    $13,650    $12,022       $32,653    $32,055
    Cost of revenues              7,061      6,042        17,322     16,847
      Gross profit                6,589      5,980        15,331     15,208

    Operating expenses:
      Research and development    2,653      2,791         7,591      6,666
      Selling, general and
        administrative            5,297      3,208        14,717      8,551
      Acquired in-process
        research and development     --      4,664            --      4,664
    Total operating expenses      7,950     10,663        22,308     19,881

    Operating income (loss)      (1,361)   (4,683)        (6,977)    (4,673)

    Other income (expense), net      95        200           464       (181)
    Minority interest in
      consolidated subsidiary        78         --            70         --
    Net income (loss)           $(1,188)  $(4,483)       $(6,443)  $(4,854)

    Net income (loss) per share:
    Basic                        $(0.07)   $(0.29)        $(0.39)   $(0.48)
    Diluted                      $(0.07)   $(0.29)        $(0.39)   $(0.48)

    Shares used to compute net
      income (loss) per share:
    Basic                        16,660     15,355        16,314     10,120
    Diluted                      16,660     15,355        16,314     10,120


                                FVC.COM, INC.
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                          (in thousands; unaudited)

                                                   September 30, December 31,
                                                       1999           1998

    ASSETS
    Current assets:
      Cash and cash equivalents                       $2,070        $10,315
      Short-term investments                           7,823         16,433
      Accounts receivable                             14,347         11,221
      Inventory                                       13,112          6,053
      Prepaids and other current assets                1,314          1,241
        Total current assets                          38,666         45,263
    Property and equipment, net                        3,161          2,400
    Other assets                                       3,411          3,502
                                                     $45,238        $51,165

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
      Notes payable                                      $--         $1,300
      Current portion of long-term debt                  136            137
      Accounts payable                                 5,501          5,045
      Accrued expenses                                 2,895          1,937
      Deferred revenue                                 1,784          3,905
        Total current liabilities                     10,316         12,324

    Long-term debt, net of current portion               125            228

    Minority interest in consolidated subsidiary
     company                                             235             --

    Stockholders' equity:
      Common stock                                        17             16
      Additional paid-in capital                      63,861         61,649
      Notes receivable from stockholders                (322)          (502)
      Accumulated other comprehensive loss                --             --
      Accumulated deficit                            (28,994)       (22,550)
        Total stockholders' equity                    34,562         38,613
                                                     $45,238        $51,165

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