Of interest:
( BW)(VOCALTEC)(VOCLF) VocalTec Communications Reports First Quarter
1998 Results
ÿÿÿÿBusiness/Hi-Tech Editors
ÿÿÿÿHERZLIYA, Israel--(BUSINESS WIRE)--April 23, 1998--VocalTec
Communications Ltd. (Nasdaq:VOCLF), the IP communications company, today announced revenues of $4.9 million for the first quarter ended March 31, 1998, an increase of 60% over the first quarter ended March 31, 1997, and 2% over the fourth quarter of 1997.
ÿÿÿÿThe net loss for the first quarter of 1998 was $2.4 million, or
$0.23 per share, compared to a net loss of $2.3 million, or $0.27 per
share, for the year-ago period. The net loss in the fourth quarter of
1997 was $1.6 million, or $0.18 per share.
ÿÿÿÿCommenting on the results, Dr. Elon Ganor, chairman and chief
executive officer of VocalTec, said "As we'd planned, we continued to
invest aggressively during the first quarter of 1998 in order to extend our leadership position. Just as the introduction of the VocalTec Telephony Gateway(tm) changed IP telephony from a niche to a mainstream industry, we believe the announcement of the VocalTec Ensemble Architecture(tm) represents an equally important milestone. This architecture, including new components like the VocalTec Gatekeeper(tm) and the VocalTec Network Manager(tm), enables the widescale deployment of centrally managed, reliable, scaleable and secure IP telephone services, routing traffic between thousands of gateways and servers and millions of end-user devices for both the corporate and carrier markets. These vital components, together with the availability early next year of true carrier-class gateways, will usher in the next phase of IP communications. We are committed to achieving the full potential of IP telephony y all the capabilities of the traditional telephone system and more, with significantly lower costs to construct and maintain such a network."ITSP Deployments and Telco Pilots Continue to ExpandÿDuring the first quarter of 1998, the industry continued in a phase characterized mainly by testing and field trials. The Company's gross margins were impacted this quarter by the need to supply hardware as well as software in response to requests by customers for trial systems based on the new VocalTec Ensemble Architecture. "We are pleased that trials in the international market are moving forward, and we are gratified and encouraged by the fact that we have made the 'short list' for several that seem to be the farthest along," said Dr. Ganor. "It is important to establish clear priorities and align ourselves with customers and strategic partners seriously committed to moving forward aggressively with real world deployments."ÿOn January 19th, 1998, the transaction with Deutsche Telekom was closed, and the proceeds resulted in an increase in VocalTec's cash and short term investment position to $57.1 million at the end of the quarter. Several times during the quarter, Deutsche Telekom reiterated its determination to be the first major telco to deploy IP telephony broadly as a complement to its existing service. According to Deutsche Telekom, this will enable the company to offer various classes of service. Deutsche Telekom recently announced plans to enter the market in the United States with a pilot project allowing calls to 20 countries in Europe, the Far East, Latin America and South America.ÿDuring the first quarter, VocalTec also announced that its unique NextGen Telephony Partnership Program more than doubled in size during its first seven months of operation with the addition of nine new customers. Based on these Internet Telephony Service Providers' field experience, VocalTec is accumulating valuable feedback and insight that is impossible to gain in a laboratory environment.Additional Strategic Relationships
ÿÿÿÿVocalTec also enhanced its business partnership network with the
announcement during the quarter of a worldwide distribution agreement
with Fujitsu Business Systems. Under the agreement, Fujitsu Business
Systems intends to bring the full range of VocalTec IP telephony
solutions to mainstream, national and multinational corporate customers worldwide. Fujitsu Business Systems will initially focus on distributing VocalTec's IP telephony solutions in Japan where VocalTec has recently opened a new office.ÿVocalTec also signed an agreement with Portal Software, Inc., the leader in customer management and billing software for Internet service providers. The availability of reliable, real-time billing solutions is seen as a key component for the widespread roll out of IP telephony services.Expanding Product Lines and Adding Functionality
ÿÿÿÿDuring the first quarter, VocalTec signed an agreement to acquire
substantially all the assets and liabilities of RADLinx Ltd.
("RADLinx"), a leading developer of innovative standards-based products for integrated real-time fax and electronic messaging over IP networks. RADLinx has played a similar leadership role in the development of IP fax standards to the one VocalTec has played in the development of voice standards.
ÿÿÿÿVocalTec also announced two new IP telephony gateways to meet the
needs of two important market sectors. The company announced a
carrier-grade solution that is being developed with ECI Telecom, a
leading international telecommunications manufacturer and distributor.
Available for full-scale carrier deployment early next year, this
solution will serve hundreds of lines per platform enabling operators to build networks that serve millions of users. VocalTec also announced the VocalTec Telephony Gateway Series 120, a DSP-based solution that supports 24 to 120 lines for mid-range corporate networks and independent carriers and service providers. General availability is planned for the second quarter of 1998. These new gateways join the host-based VocalTec Telephony Gateway 3.1a, the entry-level gateway solution that won the prestigious Network Magazine Product of the Year Award for its category during the quarter.
NOTE: VocalTec(R), Internet Phone(R), Internet Phone Company(tm),
Community Browser(tm), Atrium(tm), VocalTec Telephony Gateway(tm),
Surf&Call(tm), VocalTec Gatekeeper(tm) and VocalTec Network Manager(tm) are trademarks or registered trademarks of VocalTec Communications Ltd.
Other trademarks are the property of their respective holders.
ÿÿÿÿCertain statements contained in this release may contain
forward-looking information with respect to plans, projections or future performance of this Company, the occurrence of which involves certain risks and uncertainties, including, but not limited to, product and market acceptance risks, the impact of competitive pricing, competitive products, product development, commercialization and technological difficulties and other risks detailed in VocalTec Communications' reports filed from time to time with the Securities and Exchange Commission.
Seth |
