CORRECTING and REPLACING First Virtual Communications Announces Second Quarter Results.Business Editors/High-Tech Writers Correction...by First Virtual REDWOOD CITY Redwood City, city (1990 pop. 66,072), seat of San Mateo co., W Calif., on San Francisco Bay; inc. 1868. Manufactures include commmunications, electrical, electronic, and medical equipment. , Calif.--(BUSINESS WIRE)--July 29, 2003 In BW5728, issued July July: see month. 29, 2003, (CA-FIRST-VIRTUAL) Announces Second Quarter Results, sixth graph, last sentence should read xxx If you are unable to participate on the call, a replay will be available through August 5, 2003 by The call in numbers in numbered parts; as, a book published in numbers. See also: Number for the re-play are: domestic (888) 286-8010 and international (617) 801-6888, passcode 97996079. (sted If you are unable to participate on the call, a replay will be available through August 5, 2003 by dialing (877) 519-4471 for domestic callers and (973) 341-3080 for international callers, passcode 3866070.). The corrected release reads: Virtual Communications, Inc. (Nasdaq: FVCX), a premier provider of rich media web conferencing A videoconferencing session via the Internet. In order to interact with other participants, attendees use either a Web application or an application downloaded into their client machines. and communications solutions, today announced that revenue for the quarter ended June June: see month. 30, 2003 was $5.9 million and the net loss for the quarter was $2.9 million, or $0.36 per share. Compared to the second quarter of 2002, revenue declined by $750,000, primarily the result of lower sales of the Company's legacy ATM products, offset in part by increased revenue from the Company's family of Click to Meet(TM) rich media web conferencing products. The net loss was lower than the same quarter of last year by approximately $1.6 million, primarily due to the improvement in gross margins in the current quarter, offset in part by the lower revenue. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in the current period included $838,000 of non-recurring charges related to the relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. of the Company's California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). office from Santa Clara Santa Clara, city, Cuba Santa Clara (sän`tä klä`rä), city (1994 est. pop. 217,000), capital of Villa Clara prov., central Cuba. to Redwood City and the discontinuation dis·con·tin·u·a·tion n. A cessation; a discontinuance. Noun 1. discontinuation - the act of discontinuing or breaking off; an interruption (temporary or permanent) discontinuance of the Company's product development center in India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. . The loss per share of $0.36 in the current quarter compared to $0.59 per share in the second quarter of 2002. The per share figures have been adjusted to reflect the 1:5 reverse split of the Company's common stock implemented by the Company on June 27, 2003. Compared to the first quarter of 2003, the Company reported a 10% increase in revenue, primarily due to higher sales of support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services . The net loss for the quarter was higher than the loss reported in the first quarter of 2003 by $751,000, due to higher expenses, primarily consisting of non-recurring charges, partially offset by the impact of the increased revenue. "During the quarter we demonstrated real progress in executing on our principal short term objectives - spending containment containment Strategic U.S. foreign policy of the late 1940s and early 1950s intended to check the expansionist designs of the Soviet Union through economic, military, diplomatic, and political means. It was conceived by George Kennan soon after World War II. and revenue growth," said Jonathan Jonathan (jŏn`əthən) [short for Jehonathan, Heb.,=Yahweh has given]. 1 In the Bible, Saul's son and David's friend, both killed at the battle of Mt. Gilboa. David showed kindness to his son Mephibosheth. Morgan Morgan, American family of financiers and philanthropists. Junius Spencer Morgan, 1813–90, b. West Springfield, Mass., prospered at investment banking. , president and chief executive officer. "We completed two cost reduction actions that will result in more than $1.4 million in annual savings, while at the same time we were able to show some nice sequential growth in our top line." In June the Company borrowed $3 million from its bank pursuant to an existing term loan facility. The loan carries a variable interest rate and will be repaid over three years. Management will discuss the Company's first quarter financial results during its quarterly conference call for investors at 5:00pm EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT today. To participate, please call (877) 715-5321 at least five minutes prior to the start of the call. A live simulcast and replay of the conference call will be available through First Virtual Communications at www.fvc.com. If you are unable to participate on the call, a replay will be available through August 5, 2003 by The call in numbers for the re-play are: domestic (888) 286-8010 and international (617) 801-6888, passcode 97996079. About First Virtual Communications First Virtual Communications is a premier provider of rich media web conferencing and communications solutions. The Company's award-winning Click to Meet(TM) product line is enterprise-class software that enables corporate, education, healthcare and government customers worldwide to present, share, sell, train and collaborate. Click to Meet integrates the user's choice of data, audio and multipoint interactive video into existing work environments and into everyday communication tools such as instant messaging Exchanging text messages in real time between two or more people logged into a particular instant messaging (IM) service. Instant messaging is more interactive than e-mail because messages are sent immediately, whereas e-mail messages can be queued up in a mail server for seconds or , web browsing See browse. and e-mail. Click to Meet software solutions are widely deployed in over 1,500 customer locations and excel in challenging environments such as military intelligence, emergency response, disaster recovery, corporate training and geographically dispersed dis·perse v. dis·persed, dis·pers·ing, dis·pers·es v.tr. 1. a. To drive off or scatter in different directions: The police dispersed the crowd. b. tele-working locations, among others. Headquartered in Redwood City, California Redwood City is a suburb located on the San Francisco Peninsula in the San Francisco Bay Area of California. Redwood City is the county seat of San Mateo County. As of the 2005 census, the city had a total population of 76,000. , First Virtual Communications has operations in France, United Kingdom, Japan and China. More information about First Virtual Communications can be found at www.fvc.com or by calling 1-800-728-6337 or +1-650-801-6500 outside of North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Cautionary Statement Except for the historical information contained herein, this news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , including, without limitation, statements containing the words, "believes,'' "anticipates,'' "expects'' 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 the Company, 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: the success of and timely release of Click to Meet(TM) products, the continued increase in sales of the Company's Click to Meet(TM) and Conference Server products, the Company's ability to continue to contain spending and increase revenues, the Company's variability of operating results, market acceptance of rich media and Web conferencing technology, potential inability to maintain business relationships with integrators, distributors and suppliers, rapid technological changes, competition and consolidation in the Web conferencing industry, the importance of attracting and retaining personnel, and other risk factors referenced in the Company's public filings with the Securities and Exchange Commission, including the Company's report on Form 10-Q Form 10-Q See 10-Q. for the three months ended March 31, 2003. All trademarks are recognized.
First Virtual Communications, Inc.
Condensed Consolidated Balance Sheets
(in thousands; unaudited)
June 30, December 31,
2003 2002
ASSETS
Current assets:
Cash and cash equivalents $6,076 $8,352
Short-term investments 76 83
Accounts receivable 4,107 4,080
Inventory 78 613
Prepaids and other current assets 962 406
--------- ---------
Total current assets 11,299 13,534
Property and equipment, net 1,311 2,197
Other assets 249 293
Intangible assets, net 3,529 3,736
--------- ---------
$16,388 $19,760
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 1,045 1,192
Current portion of long-term debt 1,000 -
Accrued liabilities 4,448 5,139
Deferred revenue 5,983 6,656
--------- ---------
Total current liabilities 12,476 12,987
Long-term debt, net of current portion 2,000 -
Stockholders' equity:
Common stock 40 40
Additional paid-in capital 118,742 118,531
Accumulated other comprehensive
income (loss) (263) (210)
Accumulated deficit (116,607) (111,588)
Total stockholders' equity 1,912 6,773
--------- ---------
$16,388 $19,760
First Virtual Communications, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data; unaudited)
Three months Six months
ended ended
June 30, June 30,
2003 2002 2003 2002
Revenue $5,894 $6,644 $11,271 $13,245
Cost of revenue 991 3,653 1,822 5,001
Gross profit 4,903 2,991 9,449 8,244
Operating expense:
Research and development 2,395 2,431 4,882 5,188
Sales and marketing 2,778 2,375 5,371 4,290
General and administrative 1,743 2,777 3,370 5,061
Other Non-recurring charges 838 - 838 -
Total operating expense 7,754 7,583 14,461 14,539
Operating loss (2,851) (4,592) (5,012) (6,295)
Other income (expense), net (34) 48 (7) 92
Minority interest in consolidated
subsidiary - 32 - 17
Net loss $(2,885) $(4,512) $(5,019) $(6,186)
Basic and diluted net loss per
share $(0.36) $(0.59) $(0.62) $(0.85)
Shares used in computing basic and
diluted net loss per share 8,107 7,689 8,102 7,253
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