SANTA CLARA, Calif., Oct. 24 /PRNewswire/ -- FVC.COM (Nasdaq: FVCX), the
world leader in broadband two-way video networking, today announced financial
results for the third quarter ended September 30, 2000. Revenues for the
quarter were $9.2 million, compared with revenues of $13.7 million in the
quarter ended September 30, 1999. The net loss for the current quarter was
$5.2 million, or $0.30 per share, compared with a net loss of $1.2 million, or
$0.07 per share, in the third quarter of 1999.
For the nine months ended September 30, 2000, revenues were $30.0 million,
compared to $32.7 million for the first nine months of 1999. The loss for the
first nine months of the current year was $12.5 million, or $0.73 per share,
compared to a loss of $6.4 million, or $0.39 per share, in the nine months
ended September 30, 1999.
"Obviously we are all very disappointed over our lack of revenue growth,"
said Ralph Ungermann, Chairman and CEO of FVC.COM. "Our expectation for the
third quarter was to have modest top line quarter to quarter growth. We had
the orders to meet these expectations, but internal operational and supply
issues limited our ability to turn them into revenue."
"During the third quarter, we focused on several key initiatives that will
improve our long-term performance: executing our new corporate strategy,
enhancing internal processes to achieve operational excellence, and improving
customer satisfaction," continued Ungermann. "We made strong progress on a
number of these initiatives. For example, cash flow was held to a negative
$1.0M (primarily due to a reduction in the days of sales outstanding in
receivables from 139 days to 93 days) and we successfully launched Click to
Meet(TM) for the Enterprise."
Click to Meet, FVC.COM's all-encompassing broadband video networking
solution, is the foundation of the company's new strategy. It is designed to
serve as an umbrella offering for both the enterprise and service provider
systems business, as well as the wholesale video ASP business. It is a fully
integrated set of software building blocks that is highly reliable, easily
installable, and allows for replicatable sales with a short sales and
deployment cycle.
In the third quarter, two industry sponsored e-commerce exchange portals
chose Click to Meet, including Ideal Technology Solutions, the certified
service provider (CSP) for the ANX(R), the Automotive Network Exchange.
FVC.COM also won Click to Meet systems business with several other service
providers in both the US and Europe. In addition, several large corporations,
including DaimlerChrysler, selected the Click to Meet enterprise solution.
In September, FVC.COM announced its partnership with Philips Communication,
Security & Imaging (Philips CSI), a leader in desktop video equipment, to
provide a complete desktop solution to enterprises and service providers via
Click to Meet.
"In summary, we have excellent technology and strong channel partners; our
issue is execution," concluded Ungermann. "We have a new, very experienced
management team in place that is aggressively attacking these execution
problems. In the third quarter we made strong progress, especially in
customer satisfaction, and expect to make more progress in the fourth quarter.
We expect to enter the new year poised to return to strong growth."
About FVC.COM
FVC.COM (Nasdaq: FVCX) is the world leader in two-way broadband video
networking, providing systems and services that enable system integrators and
service providers to deliver video solutions to their enterprise customers.
FVC.COM's Click to Meet(TM) is the industry's first video 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 web applications, such as e-commerce,
e-learning, e-justice and e-healthcare.
FVC.COM's strategic partners include Accord, Adaptive Broadband, Alcatel,
Ameritech, Bell Atlantic, British Telecommunications plc, Cisco Systems, Inc.,
CUseeMe Networks, EDS, Ezenia!, France Telecom, Ideal Technology Solutions,
Nortel Networks, Polycom, Qwest Communications, SBC Communications Inc.,
Shanghai Telecom, Telstra, Verizon Communications, 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,
FVC's recent launch of its broadband video services offering, market
acceptance of video technology, FVC.COM's dependence on ATM backbone
technology, potential inability to maintain business relationships with
telecommunications carriers, 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, 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, as amended,
for the fiscal year ended December 31, 1999.
FVC.COM, Inc.
(In thousands)
(unaudited)
Three months ended Nine Months ended
September 30, September 30,
2000 1999 2000 1999
Revenues $ 9,158 $ 13,650 $ 30,013 $ 32,653
Cost of revenues 5,016 7,061 $ 16,376 17,322
Gross profit 4,142 6,589 13,637 15,331
Operating expenses:
Research and
development 3,302 2,653 9,017 7,591
Selling, general
and administrative 6,426 5,297 17,774 14,717
Total operating
expenses 9,728 7,950 26,791 22,308
Operating loss (5,586) (1,361) (13,154) (6,977)
Other income, net 474 95 776 463
Minority interest in
consolidated
subsidiary (69) 78 (112) 70
Net loss $ (5,181) $ (1,188) $ (12,490) $ (6,444)
Net loss per share:
Basic and diluted $ (0.30) $ (0.07) $ (0.73) $ (0.39)
Shares used to compute
net loss per share:
Basic and diluted 17,318 16,660 17,166 16,314
Three months ended Nine months ended
September 30, September 30,
2000 1999 2000 1999
Revenues 100.0% 100.0% 100.0% 100.0%
Cost of revenues 54.8% 51.7% 54.6% 53.0%
Gross profit 45.2% 48.3% 45.4% 47.0%
Operating expenses:
Research and
development 36.1% 19.4% 30.0% 23.2%
Selling, general
and administrative 70.2% 38.8% 59.2% 45.1%
Total operating
expenses 106.2% 58.2% 89.3% 68.3%
Operating loss -61.0% .0.0% -43.8% -21.4%
Other income, net 5.2% 0.7% 2.6% 1.4%
Minority interest in
consolidated
subsidiary -0.8% 0.6% -0.4% 0.2%
Net loss -56.6% -8.7% -41.6% -19.7%
Net loss per share:
Basic and diluted -- -- -- --
Shares used to compute
net loss per share:
Basic and diluted -- -- -- --
FVC.COM, Inc.
(In thousands)
(Unaudited)
September 30, December 31,
2000 1999
ASSETS
Current assets:
Cash and cash equivalents $ 1,101 $ 997
Short-term investments 28,094 7,824
Accounts receivable 9,497 14,066
Inventory 8,141 8,104
Prepaids and other current assets 1,030 2,866
Total current assets 47,863 33,857
Property and equipment, net 2,611 2,880
Other assets 2,733 3,462
$ 53,207 $ 40,199
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 106 $ 143
Accounts payable 4,999 6,968
Accrued liabilities 4,181 3,123
Deferred revenue 738 1,745
Total current liabilities 10,024 11,979
Long-term debt, net of current portion 47 85
Minority interest in consolidated subsidiary 457 323
Stockholders' equity:
Series A Convertible Preferred Stock - -
Common stock 17 17
Additional paid-in capital 91,931 65,015
Notes receivable from stockholders (29) (321)
Accumulated other comprehensive loss 128 (21)
Accumulated deficit (49,368) (36,878)
Total stockholders' equity 42,679 27,812
$ 53,207 $ 40,199
SOURCE FVC.COM
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Related links:
http://www.fvc.com
CONTACT:
Randy Acres, Chief Financial Officer of
FVC.COM, 408-567-7200, email, racres@fvc.com
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