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Technology Stocks : FVC.Com - FVCX >>> Streaming Video on Net , Compare with -- Ignore unavailable to you. Want to Upgrade?

To: WallStreetTips who wrote (4)	4/6/1999 8:59:00 PM
From: TheSlowLane	Respond to of 31

My view now, is that FVCX will get killed tomorrow. Tuesday April 6, 5:09 pm Eastern Time Company Press Release SOURCE: FVC.COM FVC.COM Reports Preliminary First Quarter Results as the Company Redefines Relationship with Largest OEM SANTA CLARA, Calif., April 6 /PRNewswire/ -- FVC.COM (Nasdaq: FVCX - news) today announced that revenues for the first quarter of 1999 are expected to be significantly below analyst expectations with a significant loss for the quarter. The Company anticipates that revenues will be between $8.0 and $8.5 million, and the net loss per share will be between $0.20 and $0.22. The Company attributed the drop in revenues to a combination of factors, including a significant decline in business through its major OEM partner, Bay Networks, now a part of Nortel Networks. Bay Networks has been FVC.COM's largest customer for the last several years. Negotiations during the quarter to restructure the companies' relationship resulted in a significant reduction in joint sales activity. Sales to Bay/Nortel fell to approximately 25 percent in the first quarter, compared with approximately 43 percent as previously reported for the fourth quarter of 1998. In addition, the Company stated that Nortel has indicated its intention to move from stocking inventory to having FVC.COM drop-ship to Nortel's customers. In order to reflect this change, CEO Rich Beyer, who joined the Company in January of this year, stated that the Company will now record its sales to Nortel on a sell-through basis and has implemented this change effective December 31, 1998. Therefore, FVC.COM is reducing its previously announced revenues for the quarter ended December 31, 1998 by approximately $7.0 to $7.5 million to defer the revenue on inventory of FVC.COM products held by Nortel on December 31, 1998. Such revenues under the revised policy are now being recognized as and when such products are sold by Nortel. Sales for the fourth quarter 1998 are being revised to approximately $4.7 to $5.2 million; earnings per share will be revised accordingly to a net loss per share of approximately $0.20 and $0.22. Commenting on the announcement, Beyer said, ''We are confident in the future prospects for the Company. In the first quarter, our business with non-Nortel partners grew approximately 25 percent year-on-year, we broadened the base of our distribution channel, we enhanced our product offerings, and we have continued to strengthen our leadership position in the enterprise video networking market. I believe that we have taken prudent financial steps to make FVC.COM a much healthier organization over the long-term, and to place the Company in a much better position to scale for future growth.'' Separately, as previously announced, the Company has recomputed the in-process research and development charge (IPR&D) for its acquisition of ICAST. In accordance with new SEC guidelines, the Company has reduced its estimate of the amount allocated to IPR&D in the ICAST acquisition by $1.5 million, from $6.2 million to $4.7 million. The incremental impact will be $87,000 per quarter, bringing the total charge for goodwill and other purchased intangibles to approximately $130,000 per quarter beginning the fourth quarter of 1998 and each quarter going forward for five years. In view of the slower than expected growth of first quarter revenues and the uncertainty of timing in some major projects, FVC.COM is taking a more cautious view of its near-term growth and will be lowering its internal forecast for the year. Revenues are expected to continue to grow throughout the remainder of the year, although at a slower pace than anticipated earlier. Actual results for the quarter are expected to be released on Tuesday, April 13th.

To: WallStreetTips who wrote (4)	4/7/1999 2:12:00 PM
From: TheSlowLane	Read Replies (1) \| Respond to of 31

"I kept saying few days back that FVCX is a screaming buy of streaming video company." What are you saying now? You seem to be at a loss for words. The fact that you started this thread just a few days before this disaster which is resulting in the parting of several fools and their money seems highly suspect to me. Any other stocks you like? I don't short stocks, but I would consider it if you can come up with some more hot tips. What a joke. For anyone checking this thread that is interested in companies operating in this space (because I think the space has potential) - do yourself a favor and check out TeraGlobal Communications (TGCC). But before you buy the stock, study their technology. Read about Motorola's AltiVec PowerPC. Read up on FireWire. Read up on ATM. Discuss the company and its prospects with other investors at Raging Bull. After you have done all of this - then make a decision.