Global Village Reports Fiscal Third Quarter Results
SUNNYVALE, Calif.--(BUSINESS WIRE)--Jan. 22, 1998--Global Village Communication, Inc. (NASDAQ:GVIL - news) today reported financial results for its third quarter of fiscal 1998, ended December 31, 1997.
Net revenue was $16.2 million, compared with $10.5 million for the same period of fiscal 1997. Net loss was $276,000, or a loss of two cents per share, compared with a net loss of $40.7 million, or a loss of $2.44 per share, for the same period a year ago. Excluding a one-time gain of $1.3 million from discontinued operations in the third quarter of fiscal 1998, the net loss would have been $1.6 million, or a loss of nine cents per share, compared with a net loss from continuing operations, excluding one time charges, of $8.6 million, or a loss of 51 cents per share for the same period last year.
Revenues for the nine months of fiscal 1998 were $49.2 million, compared with $71.2 million for the same period a year ago. Net loss, including non-recurring items, was $2.3 million, or a loss of 14 cents per share, compared with a net loss of $45.4 million, or a loss of $2.71 per share for the same period last year.
The company continues to invest in new product development. Much of this investment is being applied to new, wide-area communications products aimed at individuals and small-to-medium sized businesses. The company's management believes its ability to return to growth depends in part on the success of these efforts which may not be known for a number of quarters. In the near-term, however, the company's management expects to see continued weakness in the Macintosh market.
During the quarter, Global Village won the ''Best Buy'' rating from PC World for the TelePort 56 Windows fax/modem based on the product's performance, price and ease of installation. In the Macintosh market, Global Village continued to demonstrate its leadership position by being voted ''Reader's Choice'' for best Macintosh modem from MacHome Journal. In addition, the TelePort 56 and 56K PC Card fax/modems received the highest ratings in product reviews from MacHome Journal and MacAddict magazines.
About Global Village Communication
With over 8 million customers, Global Village Communication, Inc. (NASDAQ:GVIL - news) is a leading supplier of integrated communication solutions for Windows 95 and Macintosh personal computer users. Global Village sells its products directly and through leading VARs, retailers and distributors worldwide. For more information, please visit the Global Village web site, The Village, at globalvillage.com .
Portions of this news release contain forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including, without limitation, announcements by the company's customers and competitors; customer acceptance of, and transition to, 56K products, including the company's 56K product line; product returns; risks related to delays in product development and new product introductions; rapidly changing technology; an intensely competitive market; market acceptance of new products; foreign operations; and general economic conditions. Each of these factors, and others, are discussed more fully in the company's last filed Form 10K, Form 10Q and the company's other filings with the Securities and Exchange Commission.
GLOBAL VILLAGE COMMUNICATION, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three months ended December 31,
1997 % 1996 %
-------- ------ -------- ------
(unaudited) (unaudited)
Net revenue $ 16,185 100.0% $ 10,466 100.0%
Cost of revenue 11,358 70.2% 25,451 243.2%
Gross profit (deficit) 4,827 29.8% (14,985) -143.2%
Operating expenses:
Research and development 2,099 13.0% 3,132 29.9%
Marketing and sales 3,634 22.5% 11,653 111.3%
General and administrative 812 5.0% 2,564 24.5%
Restructuring costs -- -- 1,297 12.4%
Loss from investment in
GlobalCenter, Inc. -- -- -- --
Total operating expenses 6,545 40.4% 18,646 178.2%
Loss from operations (1,718) -10.6% (33,631) -321.3%
Loss from sale of investment in
AirMedia, Inc. -- -- -- --
Gain from sale of investment in
GlobalCenter, Inc. -- -- -- --
Other income, net 111 0.7% 80 0.8%
Loss before income taxes (1,607) -9.9% (33,551) -320.6%
Provision for income taxes
(benefit) -- -- (2,605) -24.9%
Loss from continuing
operations (1,607) -9.9% (30,946) -295.7%
Discontinued operations:
Loss from discontinued
operations -- -- -- --
Gain (loss) on disposal of
discontinued operation 1,331 8.2% (9,800) -93.6%
Net loss $ (276) -1.7% $(40,746) -389.3%
Loss per share from continuing
operations $ (0.09) $ (1.85)
Income (loss) per share from
discontinued operations 0.07 (0.59)
Net loss per share $ (0.02) $ (2.44)
Shares used in computing per
share amounts 16,981 16,725
Nine months ended December 31,
1997 % 1996 %
-------- ------ -------- ------
(unaudited) (unaudited)
Net revenue $ 49,192 100.0% $ 71,207 100.0%
Cost of revenue 33,712 68.5% 68,939 96.8%
Gross profit (deficit) 15,480 31.5% 2,268 3.2%
Operating expenses:
Research and development 7,243 14.7% 9,575 13.4%
Marketing and sales 10,637 21.6% 25,234 35.4%
General and administrative 3,263 6.6% 5,930 8.3%
Restructuring costs -- -- 1,297 1.8%
Loss from investment in
GlobalCenter, Inc. -- -- 2,191 3.1%
Total operating expenses 21,143 43.0% 44,227 62.1%
Loss from operations (5,663) -11.5% (41,959) -58.9%
Loss from sale of investment in
AirMedia, Inc. (2,074) -4.2% -- --
Gain from sale of investment in
GlobalCenter, Inc. 3,691 7.5% -- --
Other income, net 412 0.8% 633 0.9%
Loss before income taxes (3,634) -7.4% (41,326) -58.0%
Provision for income taxes
(benefit) -- -- (5,401) -7.6%
Loss from continuing
operations (3,634) -7.4% (35,925) -50.5%
Discontinued operations:
Loss from discontinued
operations -- -- (1,822) -2.6%
Gain (loss) on disposal of
discontinued operation 1,331 2.7% (7,667) -10.8%
Net loss $(2,303) -4.7% $(45,414) -63.8%
Loss per share from continuing
operations $ (0.21) $ (2.14)
Income (loss) per share from
discontinued operations 0.07 (0.57)
Net loss per share $ (0.14) $ (2.71)
Shares used in computing per
share amounts 16,965 16,771
GLOBAL VILLAGE COMMUNICATION, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
Dec. 31, March 31,
1997 1997
-------- --------
(unaudited) (audited)
Assets
Current assets:
Cash and cash equivalents $ 5,623 $ 9,687
Accounts receivable, net 9,402 4,324
Inventories, net 2,882 2,071
Income tax receivable -- 7,665
Other current assets 488 343
Total current assets $18,395 24,090
Property and equipment, net 4,599 6,929
Other assets 54 4,181
Total assets $23,048 $35,200
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $11,753 $15,971
Line of credit borrowings -- 4,241
Accrued and other liabilities 6,107 7,638
Total current liabilities 17,860 27,850
Stockholders' equity 5,188 7,350
Total liabilities and
stockholders' equity $23,048 $35,200
--------------------------------------------------------------------------------
Contact:
Global Village
Heidi Palmer, 408/523-2204 (Media Contact)
heidi_palmer@globalvillage.com
or
Demer IR Counsel, Inc.
Marianne Baldrica, 510/938-2678 (Analyst Contact)
baldrica@demer-ir.com
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