First Virtual Communications, Inc. Announces First Quarter 2001 Results

Apr 24, 2001, 01:00 ET from First Virtual Communications

    SANTA CLARA, Calif., April 24 /PRNewswire Interactive News Release/ --
 First Virtual Communications (Nasdaq:   FVCX), a leader in rich media
 communications infrastructure, today announced financial results for the first
 quarter ended March 31, 2001.  Revenues for the quarter were $4.4 million,
 compared with revenues of $10.1 million for the quarter ended March 31, 2000.
 The net loss for the current quarter was $8.3 million or $0.48 per share,
 compared with a net loss of $4 million or $0.23 per share in the first quarter
 of 2000.
     "This was a difficult quarter, and we are certainly disappointed with the
 results," said Ralph Ungermann, President and CEO.  "While we saw a dramatic
 decline in revenues, we feel that this is a temporary setback, due in large
 part to the slowdown in the economy and declining infrastructure spending,
 which affected our ATM product sales. We remain confident in the opportunities
 of the rich media communications market and will continue to pursue our long-
 term strategy to capture those opportunities."
     "Although we are optimistic about our prospects for the future, we also
 recognize that given the state of the economy and the financial markets, we
 need to take more actions to achieve profitability," Ungermann said.  "A one-
 time charge of approximately $400,000 related to our January workforce
 reduction, is included in our first quarter spending, and we continue to focus
 on reducing operating expenses and improving operating efficiencies."
     First Virtual Communications continues to execute on its strategy to bring
 industry leading e-collaboration solutions to the enterprise and service
 provider markets.  In April 2001, First Virtual Communications announced an
 alliance agreement with EDS. Under that agreement, the Company's flagship
 offering, Click to Meet(TM), will deliver rich media communications services
 to the EDS portfolio of Federal government clients.
     The Company said that management will address the financial results in
 greater detail at the time of the first quarter earnings release on Tuesday,
 April 24, 2001.  A conference call has been scheduled to begin at 2:00 p.m.
 PDT and will last for approximately one hour.  Please dial 703-871-3022 at
 least five minutes prior to the start time to participate on the call.
 Investors have the opportunity to listen to the conference call live on the
 Internet at the Company's website at http://www.fvc.com , under Investor
 Relations - by clicking on the webcast icon.  Investors should go to the
 website a few minutes early, as it may be necessary to download audio software
 to hear the conference call.  To do so, investors should click on the Real
 Player icon and follow directions from there.  A replay of the conference call
 will be available through the Company's website for 7 days or via phone at
 703-925-2435, passcode #5114077 through May 1, 2001.
 
     About First Virtual Communications
     First Virtual Communications, Inc. (Nasdaq:   FVCX) is a leader in rich
 media communications solutions, providing systems and services that enable
 system integrators and service providers to deliver an integrated suite of
 collaboration applications to its enterprise customers. First Virtual
 Communications also delivers solutions directly to corporate and public sector
 enterprises. The Company's flagship product, Click to MeetTM, is the
 industry's communications platform for high quality, face-to-face
 e-collaboration. It is designed to seamlessly integrate video and audio
 telephony, data collaboration, and streaming across IP, ISDN, DSL, and ATM
 networks. Click to Meet(TM) provides the optimal platform for delivering a new
 generation of video enabled B2B web applications, for commerce, distance
 learning, telemedicine, federal and state governments, and the judiciary.
 
     Cautionary Statement
     Except for the historical information contained herein, this news release
 contains forward-looking statements, including, without limitation, statements
 containing the words, "believes," "anticipates," "expects," "is confident" and
 words of similar import.  Such forward-looking statements have known and
 unknown risks, uncertainties and other factors that may cause the actual
 results, performance or achievements of First Virtual Communications, or
 industry results, to be materially different from any future results,
 performance or achievements expressed or implied by such forward-looking
 statements. Such factors include, among others: First Virtual Communications'
 variability of operating results, First Virtual Communications' recent launch
 of its broadband video services offering, market acceptance of video
 technology, First Virtual Communications' dependence on ATM backbone
 technology, potential inability to maintain business relationships with
 telecommunications carriers, distributors and suppliers, rapid technological
 changes, competition and consolidation in the video networking industry, the
 importance of attracting and retaining personnel, management of First Virtual
 Communications' growth, the risk that the merger with CUseeMe will not be
 completed as anticipated and that the two companies may not be successfully
 integrated, and other risk factors referenced in First Virtual Communications'
 public filings with the Securities and Exchange Commission, including the
 company's report on Form-10K for the year ended December 31, 2000.
 
 
                                First Virtual Communications, Inc.
                         Condensed Consolidated Statements of Operations
                         (in thousands, except per share data; unaudited)
 
 
                                                    (Unaudited)
                                         Three months ended Three months ended
                                              March 31           March 31
                                           2001       2000     2001     2000
 
     Revenues                            $4,382    $10,083   $4,382  $10,083
     Cost of revenues                     2,587      5,550   $2,587    5,550
            Gross profit                  1,795      4,533    1,795    4,533
 
     Operating expenses:
            Research and development      3,986      2,681   $3,986    2,681
            Selling, general and
             administrative               6,454      5,844   $6,454    5,844
             Total operating expenses    10,440      8,525  $10,440    8,525
     Operating loss                      (8,645)    (3,992) $(8,645) $(3,992)
 
     Other income, net                      316         93     $316       93
     Minority interest in consolidated
      subsidiary                             (2)       (75)     $(2)     (75)
     Net loss                           $(8,331)   $(3,974) $(8,331) $(3,974)
 
     Net loss per share:
           Basic and diluted             $(0.48)    $(0.23)  $(0.48)  $(0.23)
 
     Shares used to compute net loss
      per share:
           Basic and diluted             17,414     16,970   17,429   16,970
 
 
 
                    First Virtual Communications, Inc.
                   Condensed Consolidated Balance Sheets
                         (in thousands; unaudited)
                                                       (Unaudited)
 
                                                         March 31, December 31,
                                                            2001       2000
     ASSETS
     Current assets:
            Cash and cash equivalents                       $11,433     $7,077
            Short-term investments                            6,984     16,851
            Accounts receivable                               4,348      9,937
            Inventory                                        10,410      6,912
            Prepaids and other current
             assets                                             753        871
                Total current assets                         33,928     41,648
     Property and equipment, net                              2,607      2,815
     Other assets                                             2,192      2,478
                                                            $38,727    $46,941
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
            Current portion of long-term
             debt                                               $56        $80
            Accounts payable                                  4,205      5,122
            Accrued liabilities                               4,170      3,574
            Deferred revenue                                  1,494      1,143
                Total current liabilities                     9,925      9,919
 
     Long-term debt, net of current
      portion                                                    73         39
 
     Minority interest in consolidated
      subsidiary                                                253        253
 
     Stockholders' equity:
            Series A Convertible Preferred
             Stock                                                -          -
            Common stock                                         17         17
            Additional paid-in capital                       92,208     92,168
            Accumulated other
             comprehensive income                               247        210
            Accumulated deficit                             (63,996)   (55,665)
                Total stockholders' equity                   28,476     36,730
                                                            $38,727    $46,941
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X26648424
 
 

SOURCE First Virtual Communications
    SANTA CLARA, Calif., April 24 /PRNewswire Interactive News Release/ --
 First Virtual Communications (Nasdaq:   FVCX), a leader in rich media
 communications infrastructure, today announced financial results for the first
 quarter ended March 31, 2001.  Revenues for the quarter were $4.4 million,
 compared with revenues of $10.1 million for the quarter ended March 31, 2000.
 The net loss for the current quarter was $8.3 million or $0.48 per share,
 compared with a net loss of $4 million or $0.23 per share in the first quarter
 of 2000.
     "This was a difficult quarter, and we are certainly disappointed with the
 results," said Ralph Ungermann, President and CEO.  "While we saw a dramatic
 decline in revenues, we feel that this is a temporary setback, due in large
 part to the slowdown in the economy and declining infrastructure spending,
 which affected our ATM product sales. We remain confident in the opportunities
 of the rich media communications market and will continue to pursue our long-
 term strategy to capture those opportunities."
     "Although we are optimistic about our prospects for the future, we also
 recognize that given the state of the economy and the financial markets, we
 need to take more actions to achieve profitability," Ungermann said.  "A one-
 time charge of approximately $400,000 related to our January workforce
 reduction, is included in our first quarter spending, and we continue to focus
 on reducing operating expenses and improving operating efficiencies."
     First Virtual Communications continues to execute on its strategy to bring
 industry leading e-collaboration solutions to the enterprise and service
 provider markets.  In April 2001, First Virtual Communications announced an
 alliance agreement with EDS. Under that agreement, the Company's flagship
 offering, Click to Meet(TM), will deliver rich media communications services
 to the EDS portfolio of Federal government clients.
     The Company said that management will address the financial results in
 greater detail at the time of the first quarter earnings release on Tuesday,
 April 24, 2001.  A conference call has been scheduled to begin at 2:00 p.m.
 PDT and will last for approximately one hour.  Please dial 703-871-3022 at
 least five minutes prior to the start time to participate on the call.
 Investors have the opportunity to listen to the conference call live on the
 Internet at the Company's website at http://www.fvc.com , under Investor
 Relations - by clicking on the webcast icon.  Investors should go to the
 website a few minutes early, as it may be necessary to download audio software
 to hear the conference call.  To do so, investors should click on the Real
 Player icon and follow directions from there.  A replay of the conference call
 will be available through the Company's website for 7 days or via phone at
 703-925-2435, passcode #5114077 through May 1, 2001.
 
     About First Virtual Communications
     First Virtual Communications, Inc. (Nasdaq:   FVCX) is a leader in rich
 media communications solutions, providing systems and services that enable
 system integrators and service providers to deliver an integrated suite of
 collaboration applications to its enterprise customers. First Virtual
 Communications also delivers solutions directly to corporate and public sector
 enterprises. The Company's flagship product, Click to MeetTM, is the
 industry's communications platform for high quality, face-to-face
 e-collaboration. It is designed to seamlessly integrate video and audio
 telephony, data collaboration, and streaming across IP, ISDN, DSL, and ATM
 networks. Click to Meet(TM) provides the optimal platform for delivering a new
 generation of video enabled B2B web applications, for commerce, distance
 learning, telemedicine, federal and state governments, and the judiciary.
 
     Cautionary Statement
     Except for the historical information contained herein, this news release
 contains forward-looking statements, including, without limitation, statements
 containing the words, "believes," "anticipates," "expects," "is confident" and
 words of similar import.  Such forward-looking statements have known and
 unknown risks, uncertainties and other factors that may cause the actual
 results, performance or achievements of First Virtual Communications, or
 industry results, to be materially different from any future results,
 performance or achievements expressed or implied by such forward-looking
 statements. Such factors include, among others: First Virtual Communications'
 variability of operating results, First Virtual Communications' recent launch
 of its broadband video services offering, market acceptance of video
 technology, First Virtual Communications' dependence on ATM backbone
 technology, potential inability to maintain business relationships with
 telecommunications carriers, distributors and suppliers, rapid technological
 changes, competition and consolidation in the video networking industry, the
 importance of attracting and retaining personnel, management of First Virtual
 Communications' growth, the risk that the merger with CUseeMe will not be
 completed as anticipated and that the two companies may not be successfully
 integrated, and other risk factors referenced in First Virtual Communications'
 public filings with the Securities and Exchange Commission, including the
 company's report on Form-10K for the year ended December 31, 2000.
 
 
                                First Virtual Communications, Inc.
                         Condensed Consolidated Statements of Operations
                         (in thousands, except per share data; unaudited)
 
 
                                                    (Unaudited)
                                         Three months ended Three months ended
                                              March 31           March 31
                                           2001       2000     2001     2000
 
     Revenues                            $4,382    $10,083   $4,382  $10,083
     Cost of revenues                     2,587      5,550   $2,587    5,550
            Gross profit                  1,795      4,533    1,795    4,533
 
     Operating expenses:
            Research and development      3,986      2,681   $3,986    2,681
            Selling, general and
             administrative               6,454      5,844   $6,454    5,844
             Total operating expenses    10,440      8,525  $10,440    8,525
     Operating loss                      (8,645)    (3,992) $(8,645) $(3,992)
 
     Other income, net                      316         93     $316       93
     Minority interest in consolidated
      subsidiary                             (2)       (75)     $(2)     (75)
     Net loss                           $(8,331)   $(3,974) $(8,331) $(3,974)
 
     Net loss per share:
           Basic and diluted             $(0.48)    $(0.23)  $(0.48)  $(0.23)
 
     Shares used to compute net loss
      per share:
           Basic and diluted             17,414     16,970   17,429   16,970
 
 
 
                    First Virtual Communications, Inc.
                   Condensed Consolidated Balance Sheets
                         (in thousands; unaudited)
                                                       (Unaudited)
 
                                                         March 31, December 31,
                                                            2001       2000
     ASSETS
     Current assets:
            Cash and cash equivalents                       $11,433     $7,077
            Short-term investments                            6,984     16,851
            Accounts receivable                               4,348      9,937
            Inventory                                        10,410      6,912
            Prepaids and other current
             assets                                             753        871
                Total current assets                         33,928     41,648
     Property and equipment, net                              2,607      2,815
     Other assets                                             2,192      2,478
                                                            $38,727    $46,941
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
            Current portion of long-term
             debt                                               $56        $80
            Accounts payable                                  4,205      5,122
            Accrued liabilities                               4,170      3,574
            Deferred revenue                                  1,494      1,143
                Total current liabilities                     9,925      9,919
 
     Long-term debt, net of current
      portion                                                    73         39
 
     Minority interest in consolidated
      subsidiary                                                253        253
 
     Stockholders' equity:
            Series A Convertible Preferred
             Stock                                                -          -
            Common stock                                         17         17
            Additional paid-in capital                       92,208     92,168
            Accumulated other
             comprehensive income                               247        210
            Accumulated deficit                             (63,996)   (55,665)
                Total stockholders' equity                   28,476     36,730
                                                            $38,727    $46,941
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X26648424
 
 SOURCE  First Virtual Communications