Hybrid Networks Reports Financial Results for First Quarter of 2001

Apr 24, 2001, 01:00 ET from Hybrid Networks Inc.

    SAN JOSE, Calif., April 24 /PRNewswire Interactive News Release/ --
 Hybrid Networks Inc. (Nasdaq: HYBR), the worldwide leader in high-capacity
 MMDS fixed broadband wireless Internet access systems, today reported net
 sales of $5.1 million for the first quarter ended March 31, 2001, compared to
 $1.7 million for the first quarter of 2000.
     The net loss for the quarter was $6.3 million, or ($0.28) a share,
 compared to $8 million, or ($0.57) a share, for the first quarter of 2000.
 Hybrid's loss for the first quarter of 2001 included non-cash charges of
 $595,000.  During the quarter ended March 31, 2000, non-cash charges totaled
 $4.6 million.
     "We are encouraged by our strong results this quarter," said Michael D.
 Greenbaum, president and CEO of Hybrid Networks.  "While we recognize the
 current downturn in the telecommunications industry, during the first quarter
 we continued to ship products and succeeded in securing equity financing to
 fund additional R&D efforts and expand our sales into international markets."
     Hybrid also said it expects its revenues from the second quarter of 2001
 to be comparable to its revenues from the second quarter a year ago.  This
 expectation is based on revenue to be recognized for systems shipped in
 previous quarters that Hybrid expects Sprint to fully accept during the second
 quarter.  If Sprint does not accept the systems, Hybrid anticipates
 significantly lower revenues during the second quarter compared to the same
 period a year ago.
     In the first quarter of fiscal 2001, Hybrid introduced the ThruWAVE
 Wireless Broadband Router(TM), a single-carrier, multiple-modulation router
 that enables fixed broadband wireless service providers to increase their
 customer capacity and coverage by offering near-line-of-sight capabilities.
 In addition, Sprint deployed its Sprint Broadband Direct service using
 Hybrid's two-way fixed broadband wireless systems in Melbourne, Fla.; Fresno,
 Calif.; Oklahoma City; and Chicago.
     Wireless World LLC also launched the first two-way fixed wireless system
 in the Caribbean to deliver high-speed Internet access to its customers in the
 U.S. Virgin Islands.  Using Hybrid's system, Wireless World, the largest
 Internet service provider in the Virgin Islands, provides high-speed Internet
 access to business and residential customers in St. Thomas and St. Croix using
 a single CyberManager(TM) to operate both systems.
     A live Webcast of the management team's discussion of first-quarter
 results can be accessed at 10:30 a.m. EST today at
 http://www.videonewswire.com/HYBRID/042401.  A replay of the Webcast will be
 available until June 30 at the same Web address.  An audio replay will be
 available until June 30 at (888) 300-0165, passcode 42401.
 
     About Hybrid Networks
     Headquartered in San Jose, Calif., Hybrid Networks Inc. designs, develops,
 manufactures and markets fixed broadband wireless systems that enable
 telecommunications companies, wireless systems operators and network providers
 to offer high-speed Internet access to businesses and residences.  Hybrid was
 first to market with patented two-way wireless products that focus on the MMDS
 and WCS spectrum in the United States.  The company has also deployed systems
 in the 3.5 GHz band and similar spectrum abroad.  Hybrid's customers include
 Sprint, WorldCom, Look Communications, Thomcast Communications and Andrew
 Corp.  With systems in use in 75 markets across six continents, Hybrid is part
 of more fixed broadband wireless deployments than all of its competitors
 combined.
     For more information, call (408) 323-6252 or visit www.hybrid.com.
 
     Some of the statements in this news release regarding Hybrid Networks Inc.
 are forward-looking statements, including our expectations of revenues for the
 second quarter 2001.  We caution our stockholders and others that these
 statements involve certain risks and uncertainties.  Factors that may cause
 actual results to differ from expected results include, but are not limited
 to, the proposed rollouts not proceeding as currently anticipated, the effects
 of competitive products and pricing, economic and political conditions that
 may impact customers' ability to fund purchases of our products and services,
 the company's ability to achieve the costs savings anticipated from cost-
 reduction programs, fluctuations in international exchange rates, the timing
 of cash payments and receipts, end-use demands for wireless communication
 services, and other business factors.  For information regarding these risks
 and other related risks, see the "Risk Factors" section of Hybrid's most
 recent Form 10-K and Form 10-Q on file with the SEC.
 
     HYBRID NETWORKS, INC.
     Unaudited Condensed Statements of Operations
     (Amounts in thousands, except per share data)
 
                                                         Three Months Ended
                                                             March 31,
 
                                                        2001           2000
 
     Gross sales                                       $5,089         $1,801
     Sales discounts                                      ---            124
     Net sales                                          5,089          1,677
 
     Cost of goods sold                                 6,229          1,866
 
      Gross profit (loss)                             (1,140)          (189)
 
     Operating expenses:
      Research and development                          1,884          1,393
      Sales and marketing                                 796          3,005
      General and administrative                        1,822          3,124
       Total operating expenses                         4,502          7,522
 
     Loss from operations                             (5,642)        (7,711)
 
     Other, net                                         (632)          (308)
      Net loss                                       $(6,274)       $(8,019)
 
     Basic and diluted net loss per share             $(0.28)        $(0.57)
 
     Shares used in basic and diluted per
      share calculations                               22,059         13,991
 
 
     HYBRID NETWORKS, INC.
     Unaudited Condensed Balance Sheets
      (Amounts in thousands)
                                                                     Audited
                                                     March 31,    December 31,
                                                       2001            2000
 
     Assets
      Cash and cash equivalents                        $5,628         $1,878
      Accounts receivable, net                          4,566          7,699
      Inventories                                       6,704          7,303
      Other current assets                                424            519
       Total current assets                            17,322         17,399
 
     Property and equipment, net                        1,998          2,000
     Other assets, net                                  1,075            265
      Total assets                                    $20,395        $19,664
 
     Liabilities and shareholders' equity
      Current liabilities                               9,701         11,075
      Convertible debentures                            7,429          5,500
      Other long term liabilities                         132            132
      Shareholders' equity                              3,133          2,957
       Total liabilities and shareholders' equity     $20,395        $19,664
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X28337472
 
 

SOURCE Hybrid Networks Inc.
    SAN JOSE, Calif., April 24 /PRNewswire Interactive News Release/ --
 Hybrid Networks Inc. (Nasdaq: HYBR), the worldwide leader in high-capacity
 MMDS fixed broadband wireless Internet access systems, today reported net
 sales of $5.1 million for the first quarter ended March 31, 2001, compared to
 $1.7 million for the first quarter of 2000.
     The net loss for the quarter was $6.3 million, or ($0.28) a share,
 compared to $8 million, or ($0.57) a share, for the first quarter of 2000.
 Hybrid's loss for the first quarter of 2001 included non-cash charges of
 $595,000.  During the quarter ended March 31, 2000, non-cash charges totaled
 $4.6 million.
     "We are encouraged by our strong results this quarter," said Michael D.
 Greenbaum, president and CEO of Hybrid Networks.  "While we recognize the
 current downturn in the telecommunications industry, during the first quarter
 we continued to ship products and succeeded in securing equity financing to
 fund additional R&D efforts and expand our sales into international markets."
     Hybrid also said it expects its revenues from the second quarter of 2001
 to be comparable to its revenues from the second quarter a year ago.  This
 expectation is based on revenue to be recognized for systems shipped in
 previous quarters that Hybrid expects Sprint to fully accept during the second
 quarter.  If Sprint does not accept the systems, Hybrid anticipates
 significantly lower revenues during the second quarter compared to the same
 period a year ago.
     In the first quarter of fiscal 2001, Hybrid introduced the ThruWAVE
 Wireless Broadband Router(TM), a single-carrier, multiple-modulation router
 that enables fixed broadband wireless service providers to increase their
 customer capacity and coverage by offering near-line-of-sight capabilities.
 In addition, Sprint deployed its Sprint Broadband Direct service using
 Hybrid's two-way fixed broadband wireless systems in Melbourne, Fla.; Fresno,
 Calif.; Oklahoma City; and Chicago.
     Wireless World LLC also launched the first two-way fixed wireless system
 in the Caribbean to deliver high-speed Internet access to its customers in the
 U.S. Virgin Islands.  Using Hybrid's system, Wireless World, the largest
 Internet service provider in the Virgin Islands, provides high-speed Internet
 access to business and residential customers in St. Thomas and St. Croix using
 a single CyberManager(TM) to operate both systems.
     A live Webcast of the management team's discussion of first-quarter
 results can be accessed at 10:30 a.m. EST today at
 http://www.videonewswire.com/HYBRID/042401.  A replay of the Webcast will be
 available until June 30 at the same Web address.  An audio replay will be
 available until June 30 at (888) 300-0165, passcode 42401.
 
     About Hybrid Networks
     Headquartered in San Jose, Calif., Hybrid Networks Inc. designs, develops,
 manufactures and markets fixed broadband wireless systems that enable
 telecommunications companies, wireless systems operators and network providers
 to offer high-speed Internet access to businesses and residences.  Hybrid was
 first to market with patented two-way wireless products that focus on the MMDS
 and WCS spectrum in the United States.  The company has also deployed systems
 in the 3.5 GHz band and similar spectrum abroad.  Hybrid's customers include
 Sprint, WorldCom, Look Communications, Thomcast Communications and Andrew
 Corp.  With systems in use in 75 markets across six continents, Hybrid is part
 of more fixed broadband wireless deployments than all of its competitors
 combined.
     For more information, call (408) 323-6252 or visit www.hybrid.com.
 
     Some of the statements in this news release regarding Hybrid Networks Inc.
 are forward-looking statements, including our expectations of revenues for the
 second quarter 2001.  We caution our stockholders and others that these
 statements involve certain risks and uncertainties.  Factors that may cause
 actual results to differ from expected results include, but are not limited
 to, the proposed rollouts not proceeding as currently anticipated, the effects
 of competitive products and pricing, economic and political conditions that
 may impact customers' ability to fund purchases of our products and services,
 the company's ability to achieve the costs savings anticipated from cost-
 reduction programs, fluctuations in international exchange rates, the timing
 of cash payments and receipts, end-use demands for wireless communication
 services, and other business factors.  For information regarding these risks
 and other related risks, see the "Risk Factors" section of Hybrid's most
 recent Form 10-K and Form 10-Q on file with the SEC.
 
     HYBRID NETWORKS, INC.
     Unaudited Condensed Statements of Operations
     (Amounts in thousands, except per share data)
 
                                                         Three Months Ended
                                                             March 31,
 
                                                        2001           2000
 
     Gross sales                                       $5,089         $1,801
     Sales discounts                                      ---            124
     Net sales                                          5,089          1,677
 
     Cost of goods sold                                 6,229          1,866
 
      Gross profit (loss)                             (1,140)          (189)
 
     Operating expenses:
      Research and development                          1,884          1,393
      Sales and marketing                                 796          3,005
      General and administrative                        1,822          3,124
       Total operating expenses                         4,502          7,522
 
     Loss from operations                             (5,642)        (7,711)
 
     Other, net                                         (632)          (308)
      Net loss                                       $(6,274)       $(8,019)
 
     Basic and diluted net loss per share             $(0.28)        $(0.57)
 
     Shares used in basic and diluted per
      share calculations                               22,059         13,991
 
 
     HYBRID NETWORKS, INC.
     Unaudited Condensed Balance Sheets
      (Amounts in thousands)
                                                                     Audited
                                                     March 31,    December 31,
                                                       2001            2000
 
     Assets
      Cash and cash equivalents                        $5,628         $1,878
      Accounts receivable, net                          4,566          7,699
      Inventories                                       6,704          7,303
      Other current assets                                424            519
       Total current assets                            17,322         17,399
 
     Property and equipment, net                        1,998          2,000
     Other assets, net                                  1,075            265
      Total assets                                    $20,395        $19,664
 
     Liabilities and shareholders' equity
      Current liabilities                               9,701         11,075
      Convertible debentures                            7,429          5,500
      Other long term liabilities                         132            132
      Shareholders' equity                              3,133          2,957
       Total liabilities and shareholders' equity     $20,395        $19,664
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X28337472
 
 SOURCE  Hybrid Networks Inc.

RELATED LINKS

http://www.hybrid.com