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VideoServer, Inc. 1997 Second Quarter To Be Below Expectations
BURLINGTON, Mass., June 30 /PRNewswire/ -- VideoServer, Inc. (Nasdaq:VSVR) today announced that it expects
revenues of approximately $11 million for the second quarter of 1997. Including a pre-tax charge of approximately $14 million
for purchased research and development related to the acquisition of the network access card business unit of Promptus
Communications, the Company expects to report a net loss of approximately $8 million to $9 million, or sixty to sixty-seven
cents per share, for the period. Excluding the acquisition related charge, the company anticipates it will be modestly profitable
in the quarter. The Company expects to release final results for the second quarter on July 10.
The company cited several primary reasons for the shortfall in revenue and earnings compared to expectations. First, sales to
PictureTel Corporation, the Company's largest customer, were lower than expected. In addition, consolidations and
reorganizations among several other videoconferencing equipment OEM's were believed to have led to lower demand in the
current quarter, and demand from service providers did not meet expectations.
Robert Castle, VideoServer president and CEO commented, ``Although we are clearly disappointed in this quarter's financial
performance, we have confidence in the direction and growth of the conference server market. We will continue to focus on
those factors which have been the foundation of our market leadership, including extending our technology lead into emerging
network platforms for conferencing such as the LAN, ATM, and frame relay, moving aggressively to evolve our distribution
model to bring us closer to our customers, and building strategic partnerships.''
About VideoServer
Videoserver, Inc is a leader in networked conferencing, providing hardware and software networking solutions for multipoint
and multimedia conferences, enabling users to communicate over a variety of networks and allowing them to interact as a
group. The company's Multimedia Conference Server (MCS) products provide multipoint conferencing, as well as applications
for conference control, network management and bandwidth management. VideoServer sells its products to leading suppliers
and integrators of videoconferencing equipment, telephone carriers, conferencing service providers, network equipment
companies, computer companies and others.
Note To Investors
The estimated results in this press release are forward-looking statements that involve risks and uncertainties, and actual results
could differ materially. Risks and uncertainties include final accounting results, the evolution of VideoServer's market,
dependence on major customers, rapid technological change and competition, all as discussed further in the Management's
Discussion and Analysis section of VideoServer's 1996 Annual Report to Shareholders as incorporated by reference into the
Company's 10-K. Copies of this report, the 1996 Form 10-K filed with the Securities and Exchange Commission, or other
financial information may be received at no charge by contacting Investor Relations at VideoServer.
SOURCE: VideoServer, Inc.
Contact: Stephen J. Nill, Chief Financial Officer of VideoServer, Inc., 617-505-2175
More news for referenced ticker symbols: VSVR, and related industries: computer. |
