VideoServer, Inc. Reports 1999 First Quarter Financial Results
PR Newswire - April 12, 1999 16:28
Revenues of $16.6 Million Up 41% Over Preceding Year
BURLINGTON, Mass., April 12 /PRNewswire/ -- VideoServer, Inc. (Nasdaq: VSVR) today reported revenues of $16.6 million for the first quarter ended March 31, 1999, a 41% increase over $11.8 million reported in the first quarter of 1998. Net income for the quarter was $1,332,000 or ten cents per share compared to a net loss of $1,298,000 or ten cents per share for the corresponding quarter in 1998.
"This was another strong quarter for the company, reflecting solid gains in sales of VideoServer(TM) products to service providers and through resellers. Increased revenue was driven by demand from installed customers for product upgrades of VideoServer's industry-leading ISDN product line as well as continued early customer adoption of VideoServer's pioneering Encounter(TM) family of Internet Protocol (IP)-based products. Our Internet products are opening entirely new opportunities for us and we are encouraged with the number of leading networking resellers and ISPs that view conferencing capability as a core element of the network," said Khoa Nguyen, VideoServer president and CEO.
In February, VideoServer announced the availability of "GetSmart," an e-commerce enabled distance learning application. GetSmart, the result of a collaboration between IBM and VideoServer, features interactive collaboration capabilities, which enable training and education organizations to attract a student base previously excluded by their geography.
In March, the company announced a distribution agreement with a unit of Pioneer Standard, a $1.7 billion distributor of a broad range of computer products and electronic components. Pioneer will distribute VideoServer's IP- based Encounter family and its Series 2000 line of circuit-switched Multimedia Conference Servers, in addition to offering the GetSmart solution. VideoServer also announced the expansion of its European channel, adding Voyager Networks, a UK network solutions specialist, as a reseller. Voyager joins Controlware in Germany, Fibronique in France, ISS in Sweden, KPN Telecom in Holland, Videre in South Africa and Unitronics in Spain, all of which are marketing VideoServer's IP and ISDN networked conferencing solutions complemented with a variety of consulting and design services.
Also in March, VideoServer announced a technology partnership with VirtuaLINC Corporation, a leading Next Generation Internet service provider. VirtuaLINC's innovative network links many hotels and convention centers to provide a nationwide service enabling long-distance video interviews, employee training, product launches, and interactive trade show capabilities for Fortune 1000 companies.
About VideoServer
VideoServer, Inc. is a leading global provider of networked conferencing, which enables people in multiple locations to communicate together, using any combination of audio, video and data. VideoServer connects employees, customers, and partners reliably to each other by providing seamless integration of networked conferencing over LANs, WANs, and any IP-based network. The Company's Multimedia Conference Server (MCS) and related products provide multipoint conferencing, gateway services, conference control, and network and bandwidth management. VideoServer sells its products worldwide through leading resellers and integrators, as well as remarketers of videoconferencing and networking solutions. VideoServer also sells directly to providers of conferencing services, including Internet Service Providers, telecommunication carriers, Regional Bell Operating Companies and global PTTs.
Note To Investors
Statements included herein that are not historical facts may include forward-looking statements. Such forward looking statements involve risks and uncertainties, including 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 1998 Annual Report to Shareholders as incorporated by reference into the Company's 10-K. Copies of this report, the 1998 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.
VideoServer, Inc.
Consolidated Balance Sheets
(In thousands)
March 31, December 31,
1999 1998
ASSETS
Current assets:
Cash and marketable
securities $52,353 $50,606
Accounts receivable, net 9,063 7,778
Inventories 2,609 3,693
Deferred taxes 3,300 3,300
Other current assets 1,576 1,497
Total current assets 68,901 66,874
Equipment and
improvements, net 5,754 6,616
Deferred taxes 4,000 4,000
Other assets, net 3,061 2,642
Total Assets $81,716 $80,132
LIABILITIES AND STOCKHOLDERS' EQUITY
Total Current Liabilities 15,588 15,987
Total Stockholders' Equity 66,128 64,145
Total Liabilities &
Stockholders' Equity $81,716 $80,132
VideoServer, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
For the three months
ended March 31,
1999 1998
Net revenue 16,562 11,753
Cost of revenue 6,146 5,004
Gross Profit 10,416 6,749
Operating expenses:
Research and development 3,799 3,791
Sales and marketing 3,831 2,849
General and administrative 1,311 1,215
Non-recurring charges 657
Total operating expenses 8,941 8,512
Income (loss)
from operations 1,475 (1,763)
Interest income, net 543 465
Income (loss) before
income taxes 2,018 (1,298)
Provision (benefit)
for income taxes 686 0
Net income (loss) $1,332 ($1,298)
Net income (loss) per share $0.10 ($0.10)
Net income (loss) per share
- diluted $0.10 ($0.10)
Weighted average
common shares 13,434 13,164
Weighted average common
shares and
equivalents -
assuming dilution 13,913 13,164
SOURCE VideoServer, Inc.
/CONTACT: Stephen J. Nill, Chief Financial Officer of VideoServer, Inc.,
781-505-2175/
(VSVR)
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