BURLINGTON, Mass, April 1 /PRNewswire/ -- VideoServer, Inc. (Nasdaq: VSVR)
today announced that it expects to report revenues of approximately $11.5
million for the first quarter of 1998. Net operating results before any one-
time charges are expected to approximate break-even for the quarter. The
Company expects to release final results on April 9.
Robert Castle, VideoServer president and CEO commented, "This
disappointing performance was the result of unexpectedly soft demand across
most of our channels, and across all geographies. We believe customers have
further slowed their purchases of traditional conferencing products as they
begin to evaluate new conferencing technologies just now coming to market.
The most anticipated of these are products which extend standards-based
conferencing solutions to mainstream corporate networks such as LANs,
intranets, and ATM."
Castle continued, "We are energized and encouraged by the reception we are
getting from customers regarding VideoServer's recently introduced LAN and ATM
based products. Now we, together with our partners, need to bring end users
through the transition period that the conferencing industry is experiencing.
At the same time, we are focused on keeping our costs aligned with near-term
revenue opportunities, so we are taking various actions to realign our
expenses. Associated one-time charges are expected to be reflected in our
first quarter results."
About VideoServer
VideoServer, Inc. is a leading provider of network servers for multimedia
conferencing that enable people in multiple locations to communicate together
using any combination of voice, video and data information. The company's
Multimedia Conference Server products provide multipoint conferencing, gateway
services, conference control, network management and bandwidth management.
The company's products enable connectivity across all major corporate networks
including LANs, intranets, the Internet, ISDN, ATM and Frame Relay.
VideoServer sells its products worldwide through leading suppliers and
integrators of videoconferencing and networking equipment, and directly to
providers of conferencing services including major long-distance and regional
telephone carriers and private service bureaus.
Note To Investors
The estimated results and other statements in this press release are
forward-looking statements that involve risks and uncertainties, and actual
results could differ materially. Risks and uncertainties include the
determination of 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 1997 Annual Report to Shareholders as
incorporated by reference into the Company's 10-K. Copies of this report, the
1997 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.
-0- 04/01/98
/CONTACT: Stephen J. Nill, Chief Financial Officer of VideoServer, Inc.,
781-505-2175/
(VSVR)
CO: VideoServer, Inc.
ST: Massachusetts
IN: CPR
SU: ERP |
