Latitude Communications Reports First Quarter 2001 Financial Results

Apr 17, 2001, 01:00 ET from Latitude Communications, Inc.

    SANTA CLARA, Calif., April 17 /PRNewswire/ --
 Latitude Communications, Inc. (Nasdaq: LATD), the e-conferencing company,
 today reported its financial results for the first quarter ended March 31,
 2001.  Revenue for the first quarter was $10.2 million as compared with $10.4
 million in the first quarter of the prior year.
     Pro forma net loss for the first quarter was $779,000, or $0.04 per share
 diluted, as compared with first quarter pro forma net income in the prior year
 on a fully-taxed equivalent basis of $1.0 million, or $0.05 per share diluted.
 Pro forma results exclude amortization of deferred stock compensation.
 Without such pro forma adjustment, net loss for the first quarter was
 $875,000, or $0.05 per share diluted.
     Commenting on the first quarter results, Emil Wang, president and chief
 executive officer, stated, "Despite the current economic slowdown resulting in
 noticeably reduced capital expenditures, combined with the seasonal weakness
 we typically observe in our first quarter, top and bottom line performance
 during the period was in line with our expectations.  Additionally during the
 quarter, we successfully deployed MeetingPlace IP at our first customer site,
 U.S. Robotics, for use in an IP telephony environment with Cisco CallManager.
 And we showed strong performance from our channel sales efforts, in particular
 from our global distributors."
     Revenue for the quarter was comprised of product revenue of $6.2 million
 and service revenue of $4.0 million.  Indirect distribution accounted for a
 record 31% of total revenue, and international sales increased to 12% of total
 revenue.
     Mr. Wang continued, "We are pursuing two principal initiatives to address
 the current economic environment.  First, we are actively promoting
 MeetingPlace as a tool that has benefit to companies in a weak economy by
 reducing telecommunications expenses, helping to manage travel costs, and
 making existing employees more productive.  Second, we are increasing our
 focus on offering MeetingPlace as a service, either directly or through
 partners, to provide the functional advantages of network integration while
 helping to mitigate the capital expenditure concerns and IT resource
 constraints of many customers."
     The Company will host a conference call related to this announcement today
 at 1:30 p.m. pacific time.  Access to the conference call will be available
 both on a live as well as recorded basis through the Company's web site at
 http://www.latitude.com/investor.
 
     Cautionary Language
     This press release contains forward-looking statements regarding
 Latitude's future operating results and business strategies that involve risks
 and uncertainties that could cause actual results to differ materially from
 those in such statements.  All forward-looking statements in this release are
 based upon information available to Latitude as of the date hereof, and
 Latitude assumes no obligation to update any such forward-looking statements.
 Potential risks and uncertainties include, without limitation, Latitude's
 limited operating history, economic uncertainty and resulting weakness in
 capital expenditures, potential fluctuations in operating results, intense
 competition from substantially larger, more recognized companies, the early
 stage of development of the market for integrated voice and web conferencing
 systems, the Company's ability to attract and retain qualified sales
 personnel, the Company's reliance on the performance of its distribution
 partners, uncertain market acceptance for Latitude's products and rapid
 technological change.  These and other risk factors are described in detail in
 the company's annual report on Form 10-K for the year ended December 31, 2000
 and in its other filings with the Securities and Exchange Commission.
 
     About Latitude Communications
     Latitude Communications, Inc. is the leading provider of enterprise
 e-conferencing solutions. Latitude's award-winning MeetingPlace system is
 designed for enterprise-wide deployment to improve the ability of employees,
 partners, and customers to meet and work. Latitude customers include companies
 such as Aetna, AOL, Charles Schwab, Cisco, Deloitte & Touche, Federal Express,
 Hewlett-Packard, and Oracle. Based in Santa Clara, California, Latitude has
 direct sales and support offices or distribution partners in the United
 States, Canada, the United Kingdom, Hong Kong, Singapore and Australia.
 MeetingPlace is also available from leading application service providers.
 Latitude can be contacted at 408-988-7200 or www.latitude.com.
 
     Note:  MeetingPlace is a registered trademark of Latitude Communications,
 Inc.  All other product and company names are trademarks of their respective
 holders.
 
 
                           LATITUDE COMMUNICATIONS, INC.
                        CONSOLIDATED STATEMENTS OF OPERATION
                  (Amounts in thousands, except per share amounts)
 
                                                              3 Months Ended
                                                                March 31,
                                                               (Unaudited)
                                                             2001        2000
                                                            ------      ------
     Revenue:
       Product                                              $6,156     $7,388
       Service                                               4,060      2,977
                                                            ------     ------
         Total revenue                                      10,216     10,365
                                                            ------     ------
     Cost of revenue:
       Product                                               1,016      1,226
       Service                                               2,510      1,502
                                                            ------     ------
         Total cost of revenue                               3,526      2,728
                                                            ------     ------
     Gross Profit                                            6,690      7,637
                                                            ------     ------
     Operating expenses:
       Research and development                              1,740      1,532
       Marketing and sales                                   5,605      4,360
       General and administrative                            1,181        765
       Amortization of deferred stock compensation              96        127
                                                            ------     ------
         Total operating expenses                            8,622      6,784
                                                            ------     ------
     Income (loss) from operations                         (1,932)        853
     Interest income, net                                      565        587
                                                            ------     ------
     Income (loss) before provision for income tax         (1,367)      1,440
     Income tax (expense) benefit                              492      (596)
                                                            ------     ------
     Net income (loss)                                      $(875)       $844
                                                            ======     ======
     Net income (loss) per share - basic                   $(0.05)      $0.05
                                                            ======     ======
     Shares used in per share calculation - basic           18,746     18,662
                                                            ======     ======
     Net income (loss) per share - diluted                 $(0.05)      $0.04
                                                            ======     ======
 
     Shares used in per share calculation - diluted         18,746     20,059
                                                            ======     ======
 
     Pro forma net income (loss):
     Net income                                             $(875)       $844
     Pro forma adjustments:
       Amortization of deferred stock compensation              96        127
                                                            ------     ------
 
     Pro-forma net income (loss)                            $(779)       $971
                                                            ======     ======
 
     Pro-forma net income (loss) per share - diluted       $(0.04)      $0.05
                                                            ======     ======
 
     Shares used in per share calculation - diluted         18,746     20,059
                                                            ======     ======
 
 
                           LATITUDE COMMUNICATIONS, INC.
                            CONSOLIDATED BALANCE SHEETS
                  (Amounts in thousands, except per share amounts)
 
                                                          March 31,
                                                            2001      Dec. 31,
                                                         (unaudited)    2000
                                                           ------      ------
                            ASSETS
     Current assets:
       Cash and cash equivalents                           $18,761    $23,993
       Short-term investments                               12,327     14,203
       Accounts receivable, net                             13,031     10,044
       Inventory                                             1,506      1,662
       Prepaid and other assets                              2,550      2,790
       Deferred tax asset                                    2,779      2,779
                                                            ------     ------
         Total current assets                               50,954     55,471
     Property and equipment, net                             4,250      4,062
     Long-term investments                                   6,462      2,301
     Deposits and other long-term assets                       537        530
     Deferred tax asset                                      1,287        794
                                                            ------     ------
         Total assets                                      $63,490    $63,158
                                                            ======     ======
 
             LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
       Accounts payable                                       $631       $875
       Accrued liabilities                                   3,978      3,565
       Deferred revenue                                      7,423      6,434
       Current portion of long-term debt                       362        362
                                                            ------     ------
         Total current liabilities                          12,394     11,236
     Long-term debt                                             12        106
                                                            ------     ------
         Total liabilities                                  12,406     11,342
                                                            ------     ------
     Stockholders' equity:
       Common stock, $0.001 par value                           19         19
       Additional paid-in capital                           57,698     57,675
       Notes receivable from common stockholders              (10)       (10)
       Deferred stock compensation                           (509)      (620)
       Accumulated comprehensive income (loss)                  55         46
       Accumulated deficit                                 (6,169)    (5,294)
                                                            ------     ------
         Total stockholders' equity                         51,084     51,816
                                                            ------     ------
         Total liabilities and stockholders' equity        $63,490    $63,158
                                                            ======     ======
 
 
 

SOURCE Latitude Communications, Inc.
    SANTA CLARA, Calif., April 17 /PRNewswire/ --
 Latitude Communications, Inc. (Nasdaq: LATD), the e-conferencing company,
 today reported its financial results for the first quarter ended March 31,
 2001.  Revenue for the first quarter was $10.2 million as compared with $10.4
 million in the first quarter of the prior year.
     Pro forma net loss for the first quarter was $779,000, or $0.04 per share
 diluted, as compared with first quarter pro forma net income in the prior year
 on a fully-taxed equivalent basis of $1.0 million, or $0.05 per share diluted.
 Pro forma results exclude amortization of deferred stock compensation.
 Without such pro forma adjustment, net loss for the first quarter was
 $875,000, or $0.05 per share diluted.
     Commenting on the first quarter results, Emil Wang, president and chief
 executive officer, stated, "Despite the current economic slowdown resulting in
 noticeably reduced capital expenditures, combined with the seasonal weakness
 we typically observe in our first quarter, top and bottom line performance
 during the period was in line with our expectations.  Additionally during the
 quarter, we successfully deployed MeetingPlace IP at our first customer site,
 U.S. Robotics, for use in an IP telephony environment with Cisco CallManager.
 And we showed strong performance from our channel sales efforts, in particular
 from our global distributors."
     Revenue for the quarter was comprised of product revenue of $6.2 million
 and service revenue of $4.0 million.  Indirect distribution accounted for a
 record 31% of total revenue, and international sales increased to 12% of total
 revenue.
     Mr. Wang continued, "We are pursuing two principal initiatives to address
 the current economic environment.  First, we are actively promoting
 MeetingPlace as a tool that has benefit to companies in a weak economy by
 reducing telecommunications expenses, helping to manage travel costs, and
 making existing employees more productive.  Second, we are increasing our
 focus on offering MeetingPlace as a service, either directly or through
 partners, to provide the functional advantages of network integration while
 helping to mitigate the capital expenditure concerns and IT resource
 constraints of many customers."
     The Company will host a conference call related to this announcement today
 at 1:30 p.m. pacific time.  Access to the conference call will be available
 both on a live as well as recorded basis through the Company's web site at
 http://www.latitude.com/investor.
 
     Cautionary Language
     This press release contains forward-looking statements regarding
 Latitude's future operating results and business strategies that involve risks
 and uncertainties that could cause actual results to differ materially from
 those in such statements.  All forward-looking statements in this release are
 based upon information available to Latitude as of the date hereof, and
 Latitude assumes no obligation to update any such forward-looking statements.
 Potential risks and uncertainties include, without limitation, Latitude's
 limited operating history, economic uncertainty and resulting weakness in
 capital expenditures, potential fluctuations in operating results, intense
 competition from substantially larger, more recognized companies, the early
 stage of development of the market for integrated voice and web conferencing
 systems, the Company's ability to attract and retain qualified sales
 personnel, the Company's reliance on the performance of its distribution
 partners, uncertain market acceptance for Latitude's products and rapid
 technological change.  These and other risk factors are described in detail in
 the company's annual report on Form 10-K for the year ended December 31, 2000
 and in its other filings with the Securities and Exchange Commission.
 
     About Latitude Communications
     Latitude Communications, Inc. is the leading provider of enterprise
 e-conferencing solutions. Latitude's award-winning MeetingPlace system is
 designed for enterprise-wide deployment to improve the ability of employees,
 partners, and customers to meet and work. Latitude customers include companies
 such as Aetna, AOL, Charles Schwab, Cisco, Deloitte & Touche, Federal Express,
 Hewlett-Packard, and Oracle. Based in Santa Clara, California, Latitude has
 direct sales and support offices or distribution partners in the United
 States, Canada, the United Kingdom, Hong Kong, Singapore and Australia.
 MeetingPlace is also available from leading application service providers.
 Latitude can be contacted at 408-988-7200 or www.latitude.com.
 
     Note:  MeetingPlace is a registered trademark of Latitude Communications,
 Inc.  All other product and company names are trademarks of their respective
 holders.
 
 
                           LATITUDE COMMUNICATIONS, INC.
                        CONSOLIDATED STATEMENTS OF OPERATION
                  (Amounts in thousands, except per share amounts)
 
                                                              3 Months Ended
                                                                March 31,
                                                               (Unaudited)
                                                             2001        2000
                                                            ------      ------
     Revenue:
       Product                                              $6,156     $7,388
       Service                                               4,060      2,977
                                                            ------     ------
         Total revenue                                      10,216     10,365
                                                            ------     ------
     Cost of revenue:
       Product                                               1,016      1,226
       Service                                               2,510      1,502
                                                            ------     ------
         Total cost of revenue                               3,526      2,728
                                                            ------     ------
     Gross Profit                                            6,690      7,637
                                                            ------     ------
     Operating expenses:
       Research and development                              1,740      1,532
       Marketing and sales                                   5,605      4,360
       General and administrative                            1,181        765
       Amortization of deferred stock compensation              96        127
                                                            ------     ------
         Total operating expenses                            8,622      6,784
                                                            ------     ------
     Income (loss) from operations                         (1,932)        853
     Interest income, net                                      565        587
                                                            ------     ------
     Income (loss) before provision for income tax         (1,367)      1,440
     Income tax (expense) benefit                              492      (596)
                                                            ------     ------
     Net income (loss)                                      $(875)       $844
                                                            ======     ======
     Net income (loss) per share - basic                   $(0.05)      $0.05
                                                            ======     ======
     Shares used in per share calculation - basic           18,746     18,662
                                                            ======     ======
     Net income (loss) per share - diluted                 $(0.05)      $0.04
                                                            ======     ======
 
     Shares used in per share calculation - diluted         18,746     20,059
                                                            ======     ======
 
     Pro forma net income (loss):
     Net income                                             $(875)       $844
     Pro forma adjustments:
       Amortization of deferred stock compensation              96        127
                                                            ------     ------
 
     Pro-forma net income (loss)                            $(779)       $971
                                                            ======     ======
 
     Pro-forma net income (loss) per share - diluted       $(0.04)      $0.05
                                                            ======     ======
 
     Shares used in per share calculation - diluted         18,746     20,059
                                                            ======     ======
 
 
                           LATITUDE COMMUNICATIONS, INC.
                            CONSOLIDATED BALANCE SHEETS
                  (Amounts in thousands, except per share amounts)
 
                                                          March 31,
                                                            2001      Dec. 31,
                                                         (unaudited)    2000
                                                           ------      ------
                            ASSETS
     Current assets:
       Cash and cash equivalents                           $18,761    $23,993
       Short-term investments                               12,327     14,203
       Accounts receivable, net                             13,031     10,044
       Inventory                                             1,506      1,662
       Prepaid and other assets                              2,550      2,790
       Deferred tax asset                                    2,779      2,779
                                                            ------     ------
         Total current assets                               50,954     55,471
     Property and equipment, net                             4,250      4,062
     Long-term investments                                   6,462      2,301
     Deposits and other long-term assets                       537        530
     Deferred tax asset                                      1,287        794
                                                            ------     ------
         Total assets                                      $63,490    $63,158
                                                            ======     ======
 
             LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
       Accounts payable                                       $631       $875
       Accrued liabilities                                   3,978      3,565
       Deferred revenue                                      7,423      6,434
       Current portion of long-term debt                       362        362
                                                            ------     ------
         Total current liabilities                          12,394     11,236
     Long-term debt                                             12        106
                                                            ------     ------
         Total liabilities                                  12,406     11,342
                                                            ------     ------
     Stockholders' equity:
       Common stock, $0.001 par value                           19         19
       Additional paid-in capital                           57,698     57,675
       Notes receivable from common stockholders              (10)       (10)
       Deferred stock compensation                           (509)      (620)
       Accumulated comprehensive income (loss)                  55         46
       Accumulated deficit                                 (6,169)    (5,294)
                                                            ------     ------
         Total stockholders' equity                         51,084     51,816
                                                            ------     ------
         Total liabilities and stockholders' equity        $63,490    $63,158
                                                            ======     ======
 
 
 SOURCE  Latitude Communications, Inc.