Next generation internet has moved from the school yard to main street. Read the bold faced mention below. Can FVCX bring off the change in markets?
Read this post along with prior post because both review 4q99 results.
FVC.COM Announces Fourth Quarter Results
Operating Results in Line with Pre-Announcement; Charge Taken to Reflect New Internet Video Services Market Focus
biz.yahoo.com
SANTA CLARA, Calif., Jan. 25 /PRNewswire/ -- FVC.COM (Nasdaq: FVCX - news), the world leader in broadband video networking, today announced financial results for the fourth quarter and twelve months ended December 31, 1999. In addition, the Company also announced that, in conjunction with its increasingly successful strategic shift to focusing on the Internet video services market, the Company will take a one-time, non-cash charge in the amount of $6.3 million to reflect this major new market focus.
Revenues for the quarter were $13.0 million, compared with revenues of $13.7 million reported in the third quarter of 1999 and $5.2 million reported in the fourth quarter of 1998. The net loss for the current quarter was $7.9 million or $0.47 per share. Excluding the one-time adjustment, the net loss was $1.6 million or $0.09 per share. The Company reported a net loss of $3.2 million or $0.20 per share in the fourth quarter of 1998.
For the year revenues were $45.7 million, compared with $37.3 reported in 1998. The net loss for the year was $14.3 million, or $0.87 per share, compared with a net loss of $8.0 million, or $0.69 per share the previous year. Excluding the one-time charge, the net loss in 1999 was $8.0 million or $0.49 per share.
``1999 was a successful transition year for FVC.COM,' comments Rich Beyer, President and CEO of FVC.COM. ``At the beginning of the year our focus was on selling broadband video networking systems to enterprise customers, primarily in the government, educational and medical markets. Today we are the dominant supplier to this market and will continue to pursue it. However, it is now clear that a much larger opportunity exists in enabling service providers to deliver video services over the quickly emerging broadband Internet. Thus, throughout the year we have redirected significant resources in order to address this market opportunity. Recent successes indicate that now is the time to focus on also dominating this much larger service provider opportunity.'
FVC.COM revenues from this new market have grown from less than $500,000 in 1998 to over $8 million in 1999. The Company strongly believes that two-way and related streaming video services over the broadband Internet are poised to become as important as text and graphics are today, and that service providers, ISPs and CLECs will be the vehicle for widespread adoption of video. FVC.COM plans to provide the enabling technology and services to these companies for broadband video Internet applications.
The one-time, non-cash charge is associated with items related to previous market and product plans. Included in the charge are adjustments to accounts receivable from some international customers ($1.7 million) and adjustments to inventories of selected products that are less critical to the Company's video services strategy ($4.2 million).
``We feel strongly that our thrust into the service provider market is the future of FVC.COM. The one-time adjustment strengthens our balance sheet, and will permit the management team to focus its energies on the exciting activities and opportunities that will make us a leader in the video services arena.'
During the fourth quarter, the Company announced a strategic relationship with British Telecommunications plc (BT) to provide a new class of managed video services. BT Conferencing will provide their customers with videoconferencing, video broadcast, video on demand and the recording and storage of video content using FVC.COM equipment. The Company also announced in the quarter a joint customer win with Bell Atlantic and FORE Systems to provide Internet and broadband video services throughout the state of Pennsylvania.
About FVC.COM
FVC.COM, the world leader in broadband video networking, designs, manufactures and supports a wide range of high quality two-way and streaming video systems and service offerings that enable applications such as broadband Internet based video calls, conferences, mail, and events. These services are designed to video-enable a broad range of Internet commerce portals.
FVC.COM's strategic partners include Accord, Alcatel, Ameritech, Bell Atlantic, British Telecommunications plc, Cisco Systems, Inc., EDS, France Telecom, Nortel Networks, Polycom, Shanghai Telecom, Telstra, White Pine Software, and other leading companies worldwide. Further information about the Company is available at 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.
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