Earnings
VideoServer, Inc. Reports 1997 Second Quarter Financial Results
BURLINGTON, Mass, July 10 /PRNewswire/ -- VideoServer, Inc. (Nasdaq:VSVR) today reported revenues of $11.5 million for the second quarter ended June 30, 1997, compared with $11.3 million in revenues reported in the second quarter of 1996. Including a pre-tax charge of $14,000,000 for purchased research and development related to the acquisition of the network access card business unit of Promptus Communications, the Company reported a net loss for the quarter of $8,679,000 or sixty-five cents per share compared to net income of $2,243,000 or seventeen cents per share for the corresponding quarter in 1996.
Excluding the impact of the $14,000,000 acquisition related charge, the company's net income for the 1997 second quarter was $281,000 or $.02 cents per share.
Through the six months ending June 30, 1997, revenues were $26.8 million, a 29% increase over the $20.8 million reported in the corresponding period in 1996. The company reported a net loss for the first six months of 1997 of $5,782,000 or forty-four cents per share compared to net income of $4,148,000 or thirty-one cents per share in the corresponding 1996 period. Without the impact of the acquisition related charge, net income for the six months of 1997 was $3,178,000, or $.24 cents per share.
Robert Castle, VideoServer President and CEO, said, ``As previously indicated in our announcement on June 30, 1997, the disappointing financial results for the second quarter reflect lower revenues due to lower sales to PictureTel Corporation, the Company's largest customer, consolidations and reorganizations among several other videoconferencing equipment OEMs, and lower demand from service providers.''
``Although momentum in the conferencing market appears to have slowed, we are very encouraged by the direction the market is taking, and are working aggressively to advance our technology, broaden our distribution model, and to build on our strategic partnerships. There are a number of important developments on the horizon which are expected to fuel market growth, including the extension of conferencing to packet based networks such as LANs, intranets and the Internet, increasing focus and commitment to videoconferencing by some of the world's leading computer and internetworking companies, and continued advances in the quality, ease of use, and the economics of conferencing for the end user.''
In April, VideoServer announced its selection by Bell Atlantic as the supplier for Bell Atlantic's Group Link Video conferencing service. In May, VideoServer announced an OEM agreement with Zydacron, one of the largest suppliers of videoconferencing solutions, making VideoServer its first supplier of conference servers. Also in May, VideoServer began shipping Version 5.2 of its software, delivering enhanced conference management capabilities to service providers and enterprise users.
Also in the second quarter, VideoServer introduced multipoint conferencing capabilities over frame relay and ATM networks through partnerships with ABL, a world leader in digital video transmission, and First Virtual Corporation, the leading provider of business quality video networking. These industry firsts demonstrate VideoServer's continued technology leadership in the conference server market and its commitment to grow its markets by broadening the range of network platforms over which VideoServer equipment is used.
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
Statements included herein that are not historical facts may include forward-looking statements that involve risks and uncertainties, including 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.
VideoServer, Inc.
Consolidated Balance Sheets
(In thousands)
June 30, December 31,
1997 1996
ASSETS
Current Assets:
Cash and marketable securities $43,392 $54,684
Accounts receivable, net 6,383 7,252
Inventories 5,880 3,653
Deferred taxes 2,280 2,280
Other current assets 796 843
Total current assets 58,731 68,712
Equipment and improvements, net 5,171 4,180
Deferred taxes 4,680 ---
Other assets, net 2,451 204
Total Assets $71,033 $73,096
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $12,833 $13,058
Other liabilities 41 167
Stockholders' equity 58,159 59,871
Total Liabilities &
Stockholders' Equity $71,033 $73,096
VideoServer, Inc.
Consolidated Statements of Income
(In thousands)
For the three months For the six months
ended June 30, ended June 30,
1997 1996 1997 1996
Net Sales $11,451 $11,270 $26,754 $20,780
Cost of Sales 4,220 3,742 9,179 6,815
Gross Profit 7,231 7,528 17,575 13,965
Operating expenses:
Research and development 3,176 1,894 5,719 3,477
Sales and marketing 2,881 2,027 5,609 3,807
General and administrative 1,144 977 2,215 1,849
Purchased research and
development 14,000 --- 14,000 ---
Total operating expenses 21,201 4,898 27,543 9,133
Income from operation (13,970) 2,630 (9,968) 4,832
Interest income, net 409 442 934 850
Income before income taxes (13,561) 3,072 (9,034) 5,682
Provision for income taxes (4,882) 829 (3,252) 1,534
Net Income ($8,679) $2,243 ($5,782) $4,148
Net income per share ($0.65) $0.17 ($0.44) $0.31
Weighted average common
shares and equivalents 13,268 13,338 13,240 13,216
------------------------------------------------------------------------
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: |
