Vyyo Reports 1st Quarter 2001 Financial Results

Apr 24, 2001, 01:00 ET from Vyyo Inc.

    CUPERTINO, Calif., April 24 /PRNewswire Interactive News Release/ --
 Vyyo Inc. (Nasdaq: VYYO) today reported net revenues of $669,000 for the first
 quarter of 2001 compared to $1.8 million for the first quarter of 2000.  Vyyo
 also recorded a $7.9 million charge for inventory and purchase commitments and
 a $4.6 million restructuring charge in the first quarter of 2001.
     Pro forma net loss for the first quarter of 2001, excluding stock
 compensation charges as well as the inventory and restructuring charges, was
 $9.3 million, or $0.25 per share.  Historical net loss for the first quarter
 of 2001 was $25.8 million, or $0.70 per share, compared with $11.3 million, or
 $0.48 per share, for the first quarter of 2000.
     "In response to the economic climate, we are reducing our operating
 expenses and directing resources to support key existing customers that are
 expected to continue with their deployment plans," said John O'Connell, Vyyo's
 chief executive officer.  "We are also continuing to focus on new
 opportunities in international markets, especially in the 3.5Ghz band.  We
 have the financial strength to work through this period and we remain focused
 on building our organization and product strength to take advantage of
 conditions as they improve."
     Vyyo's conference call will be webcast live over the Internet at
 www.vyyo.com on April 24, 2001 and archived through May 1, 2001 in the
 investor section of our website at www.vyyo.com.  The conference call will
 also be replayed by telephone from 3:30 p.m. Pacific Time on April 24, 2001 to
 5:00 p.m. Pacific Time on May 1, 2001.  The replay number for the call is
 1-800-405-2236 or 1-303-590-3000 with pass code 321045.
 
     About Vyyo:  Vyyo supplies standards-based broadband wireless access
 systems operating over many frequencies including MMDS, LMDS, 3.5 GHz, 10.5
 GHz, WCS, UHF and unlicensed frequencies used by telecommunications service
 providers to deliver wireless, high-speed data connections to business and
 residential subscribers.  Vyyo's flexible point-to-multipoint systems are
 based on the Internet Protocol (IP) used for data transport over the wireless
 services.  Vyyo has wireless network systems operating in the U.S., Canada,
 Latin America and South America.  Its customers include system integrators,
 OEMs, and independent wireless operators.  For more information about Vyyo's
 broadband wireless access systems, please visit www.vyyo.com.
     This press release contains forward-looking statements including
 statements regarding Vyyo's efforts to develop new opportunities, and the
 improvement of market conditions.  These statements involve risks and
 uncertainties, and there can be no assurance that Vyyo will be successful in
 marketing and selling its products, or that the wireless broadband access
 market in which Vyyo operates will improve in the near future, or at all.
 Actual events and results may differ materially from those projected in these
 forward-looking statements as a result of several factors, including but not
 limited to, the current limited visibility available in the telecommunications
 and broadband access equipment markets, growth of the fixed wireless broadband
 market and the rate of deployment by Vyyo's customers, the ability of Vyyo to
 market and sell successfully its products, economic conditions worldwide and
 the continued effects of the slowing U.S. economy, effects of regulatory
 actions worldwide affecting spectrum allocation and frequencies and the
 ability of the Company's customers to deploy broadband wireless access
 networks, and other risks set forth in Vyyo's annual report on Form 10-K for
 the year ended December 31, 2000, and in other periodic reports filed by Vyyo
 with the Securities and Exchange Commission from time to time.  Vyyo assumes
 no duty to update these statements.
 
                                   Vyyo Inc.
                Condensed Consolidated Statements of Operations
                     (In Thousands, except per share data)
 
                                                           Quarter Ended
                                                             March 31,
                                                       2001              2000
 
     Net revenues                                      $669            $1,841
     Cost of revenues (includes $7.9
      million of charges for inventory and
      purchase commitments in 2001)                   8,900             1,392
     Gross profit (loss)                             (8,231)              449
 
     Operating expenses:
        Research and development                      5,534             1,903
        Sales and marketing                           2,331             1,450
        General and administrative                    2,822             1,783
        Restructuring charge                          4,573               ---
        Charge for stock compensation                 4,012             6,500
     Total operating expenses                        19,272            11,636
 
     Operating loss                                 (27,503)          (11,187)
     Interest and other income (expense), net         1,752               (68)
 
     Net loss                                      $(25,751)         $(11,255)
     Pro forma net loss *                           $(9,004)          $(4,755)
 
     Net loss per share (basic and
      diluted)                                       $(0.70)           $(0.48)
     Shares used in net loss per share
      (basic and diluted)                            36,983            23,312
 
     Pro forma net loss per share *                  $(0.24)           $(0.17)
     Shares used in pro forma net loss per share     36,983            27,256
 
     * Pro forma net loss excludes charges for inventory and purchase
       commitments, restructuring, and stock compensation.  Pro forma net loss
       per share excludes these charges and for 2000 reflects the conversion of
       the outstanding preferred shares into common shares, which automatically
       converted at the completion of the IPO
 
 
                                     Vyyo Inc.
                       Condensed Consolidated Balance Sheets
                                  (In Thousands)
 
                                                  March 31,        December 31,
                                                     2001              2000
     Assets
     Current assets:
        Cash, cash equivalents and short-term
         investments                               $104,064          $127,905
        Accounts receivable, net                        646             2,890
        Inventory                                     4,795             6,006
        Other                                         2,206             2,382
     Total Current Assets                           111,711           139,183
 
     Property and equipment, net                      4,609             3,984
                                                   $116,320          $143,167
 
     Liabilities and stockholders' equity
     Current liabilities:
        Accounts payable                             $3,297            $6,242
        Accrued liabilities                          15,374             9,345
     Total Current Liabilities                       18,671            15,587
 
     Stockholders' equity                            97,649           127,580
                                                   $116,320          $143,167
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X98956858
 
 

SOURCE Vyyo Inc.
    CUPERTINO, Calif., April 24 /PRNewswire Interactive News Release/ --
 Vyyo Inc. (Nasdaq: VYYO) today reported net revenues of $669,000 for the first
 quarter of 2001 compared to $1.8 million for the first quarter of 2000.  Vyyo
 also recorded a $7.9 million charge for inventory and purchase commitments and
 a $4.6 million restructuring charge in the first quarter of 2001.
     Pro forma net loss for the first quarter of 2001, excluding stock
 compensation charges as well as the inventory and restructuring charges, was
 $9.3 million, or $0.25 per share.  Historical net loss for the first quarter
 of 2001 was $25.8 million, or $0.70 per share, compared with $11.3 million, or
 $0.48 per share, for the first quarter of 2000.
     "In response to the economic climate, we are reducing our operating
 expenses and directing resources to support key existing customers that are
 expected to continue with their deployment plans," said John O'Connell, Vyyo's
 chief executive officer.  "We are also continuing to focus on new
 opportunities in international markets, especially in the 3.5Ghz band.  We
 have the financial strength to work through this period and we remain focused
 on building our organization and product strength to take advantage of
 conditions as they improve."
     Vyyo's conference call will be webcast live over the Internet at
 www.vyyo.com on April 24, 2001 and archived through May 1, 2001 in the
 investor section of our website at www.vyyo.com.  The conference call will
 also be replayed by telephone from 3:30 p.m. Pacific Time on April 24, 2001 to
 5:00 p.m. Pacific Time on May 1, 2001.  The replay number for the call is
 1-800-405-2236 or 1-303-590-3000 with pass code 321045.
 
     About Vyyo:  Vyyo supplies standards-based broadband wireless access
 systems operating over many frequencies including MMDS, LMDS, 3.5 GHz, 10.5
 GHz, WCS, UHF and unlicensed frequencies used by telecommunications service
 providers to deliver wireless, high-speed data connections to business and
 residential subscribers.  Vyyo's flexible point-to-multipoint systems are
 based on the Internet Protocol (IP) used for data transport over the wireless
 services.  Vyyo has wireless network systems operating in the U.S., Canada,
 Latin America and South America.  Its customers include system integrators,
 OEMs, and independent wireless operators.  For more information about Vyyo's
 broadband wireless access systems, please visit www.vyyo.com.
     This press release contains forward-looking statements including
 statements regarding Vyyo's efforts to develop new opportunities, and the
 improvement of market conditions.  These statements involve risks and
 uncertainties, and there can be no assurance that Vyyo will be successful in
 marketing and selling its products, or that the wireless broadband access
 market in which Vyyo operates will improve in the near future, or at all.
 Actual events and results may differ materially from those projected in these
 forward-looking statements as a result of several factors, including but not
 limited to, the current limited visibility available in the telecommunications
 and broadband access equipment markets, growth of the fixed wireless broadband
 market and the rate of deployment by Vyyo's customers, the ability of Vyyo to
 market and sell successfully its products, economic conditions worldwide and
 the continued effects of the slowing U.S. economy, effects of regulatory
 actions worldwide affecting spectrum allocation and frequencies and the
 ability of the Company's customers to deploy broadband wireless access
 networks, and other risks set forth in Vyyo's annual report on Form 10-K for
 the year ended December 31, 2000, and in other periodic reports filed by Vyyo
 with the Securities and Exchange Commission from time to time.  Vyyo assumes
 no duty to update these statements.
 
                                   Vyyo Inc.
                Condensed Consolidated Statements of Operations
                     (In Thousands, except per share data)
 
                                                           Quarter Ended
                                                             March 31,
                                                       2001              2000
 
     Net revenues                                      $669            $1,841
     Cost of revenues (includes $7.9
      million of charges for inventory and
      purchase commitments in 2001)                   8,900             1,392
     Gross profit (loss)                             (8,231)              449
 
     Operating expenses:
        Research and development                      5,534             1,903
        Sales and marketing                           2,331             1,450
        General and administrative                    2,822             1,783
        Restructuring charge                          4,573               ---
        Charge for stock compensation                 4,012             6,500
     Total operating expenses                        19,272            11,636
 
     Operating loss                                 (27,503)          (11,187)
     Interest and other income (expense), net         1,752               (68)
 
     Net loss                                      $(25,751)         $(11,255)
     Pro forma net loss *                           $(9,004)          $(4,755)
 
     Net loss per share (basic and
      diluted)                                       $(0.70)           $(0.48)
     Shares used in net loss per share
      (basic and diluted)                            36,983            23,312
 
     Pro forma net loss per share *                  $(0.24)           $(0.17)
     Shares used in pro forma net loss per share     36,983            27,256
 
     * Pro forma net loss excludes charges for inventory and purchase
       commitments, restructuring, and stock compensation.  Pro forma net loss
       per share excludes these charges and for 2000 reflects the conversion of
       the outstanding preferred shares into common shares, which automatically
       converted at the completion of the IPO
 
 
                                     Vyyo Inc.
                       Condensed Consolidated Balance Sheets
                                  (In Thousands)
 
                                                  March 31,        December 31,
                                                     2001              2000
     Assets
     Current assets:
        Cash, cash equivalents and short-term
         investments                               $104,064          $127,905
        Accounts receivable, net                        646             2,890
        Inventory                                     4,795             6,006
        Other                                         2,206             2,382
     Total Current Assets                           111,711           139,183
 
     Property and equipment, net                      4,609             3,984
                                                   $116,320          $143,167
 
     Liabilities and stockholders' equity
     Current liabilities:
        Accounts payable                             $3,297            $6,242
        Accrued liabilities                          15,374             9,345
     Total Current Liabilities                       18,671            15,587
 
     Stockholders' equity                            97,649           127,580
                                                   $116,320          $143,167
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X98956858
 
 SOURCE  Vyyo Inc.