Below is NetSpeak's 3rd Qtr results. Based on having read it, Bay's investment($37.6) is very high for a company with so little revenues.
I know technology costs---what am I missing?
Regards,
John
NetSpeak Announces Third Quarter 1997 Results
BOCA RATON, FL - November 4, 1997 - NetSpeak Corporation (NASDAQ National Market: NSPK), a leading
developer and marketer of IP telephony technology, today announced revenues of $1.5 million for the third quarter ended
September 30, 1997, an increase of $1.3 million from the third quarter of 1996 and an increase of 33% over the second
quarter of 1997. Revenues for the nine months ended September 30, 1997 were $3.5 million, an increase of $3.1 million
from the comparable period in 1996. Sales of gateway products and business systems continued to increase as a percentage
of net revenues during the third quarter as compared to previous quarters.
Net loss for the third quarter of 1997 was $1.2 million, or $0.11 per share, as compared to $0.8 million, or $0.10 per share,
in the third quarter of 1996. Net loss for the nine months ended September 30, 1997 was $3.3 million, or $0.35 per share,
as compared to $2.0 million, or $0.23 per share, for the comparable period in 1996.
Total operating expenses for the third quarter of 1997 were $2.9 million representing an increase of $1.8 million from the
comparable period in 1996. The increase in operating expenses is the result of the Company's continued investments in its
research and development efforts and the expansion of its sales and marketing infrastructure. The Company also incurred
additional research and development expenses attributable to the introduction of its new generation of gateway products on
the Natural MicroSystems platform. Additionally, NetSpeak recently opened an office in Australia as a result of our
relationship with Telstra and is also in the process of opening an office in California.
"We are extremely pleased with NetSpeak's progress during the quarter," said Stephen R. Cohen, Chairman and Chief
Executive Officer. "As reflected by the amount of attention the IP telephony industry has recently received, we believe that
the market is beginning to realize the advantages that IP telephony offers. In line with NetSpeak's mission, to develop
scalable, interoperable systems that meet the rigorous standards of the carrier and telco market, the Company introduced its
new generation of gateway products based on the Natural Microsystems platform during the quarter. Utilizing this new
platform NetSpeak has created a suite of highly scalable gateway products which offer up to 120 ports in a single system,
while delivering the highest voice quality in the Company's history. We are very excited about this new product offering, we
believe this product is a major step towards meeting the current standards demanded by the carrier and telco market."
Earlier today, the Company announced an expanded relationship with Siemens Telecom Networks (formerly Siemens
Stromberg Carlson) to extend the number of NetSpeak products marketed by Siemens and to imbed NetSpeak's
technology into the recently announced Siemens gateway offering. "We are very proud to have the endorsement of a
world-class telecommunications leader such as Siemens. We look forward to a mutually prosperous partnership together,"
added Cohen.
On October 20, 1997, Networks Telephony Corporation, a subsidiary of Infonet, which operates one of the world's largest
commercial data networks, launched a service which delivers voice traffic over Infonet's worldwide frame relay network.
This service, which allows computer users to access Infonet's network directly through ISP's, was made possible through the
deployment of a comprehensive suite of NetSpeak's systems.
NetSpeak Corporation, based in Boca Raton, FL, develops, markets, licenses and supports a suite of intelligent software
modules which provide business solutions for concurrent, real-time interactive voice, video and data communications over
packetized data networks such as the Internet and Local Area Networks and Wide Area Networks. NetSpeak's products
allow organizations to build new voice and video-enabled communications networks, or to add these communications
capabilities to their existing networks. |
