First Virtual Communications Announces First Quarter 2003 Results.Business Editors/High-Tech Writers 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. , Calif.--(BUSINESS WIRE)--April 29, 2003 First Virtual Communications (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 collaboration solutions, today announced that revenue for the quarter ended March 31, 2003 was $5.4 million and the net loss for the quarter was $2.1 million or $0.05 per share. Compared to the first quarter of 2002, revenue declined by $1.2 million, primarily the result of lower sales of the Company's legacy ATM products. The net loss was higher than the same quarter of last year by approximately $460,000, primarily due to the lower revenue, offset in part by an improvement in gross margins in the current quarter. The loss per share was $0.05 in the current quarter and the first quarter of 2002. Compared to the fourth quarter of 2002, the Company reported a 7% increase in revenue for the first quarter of 2003, with higher sales of both Click to Meet(TM) software and 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 lower than the loss reported in the fourth quarter of 2002 by $10.3 million, due to higher revenue, improved gross margins and lower 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. . The fourth quarter of 2002 also included a non-recurring, non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $9.9 million, representing a charge for impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of Goodwill and intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. pursuant to FSAS FSAS Famous Stars And Straps (clothing label) FSAS Flight Service Automation System FSAS Fuel Savings Advisory System FSAS Force Selection and Activation System 142 and 144. "I was quite pleased with our performance in the first quarter, historically our weakest quarter of the year," said Jonathan 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. "Compared to the fourth quarter of last year, we delivered an increase in revenue, higher gross margins and lower spending." In April 2003, the Company entered into two separate agreements, one with its bank and one with its founder and Chairman, Ralph Ungermann, pursuant to which the Company will have access to additional cash resources of up to $4 million. The Company also announced that it would relocate re·lo·cate v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates v.tr. To move to or establish in a new place: relocated the business. v.intr. its Santa Clara, California Santa Clara, California (IPA: /ˌsæntəˈklærə/) , founded in 1777 and incorporated in 1852, is a city in Santa Clara County, in the U.S. state of California. headquarters to new office space 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. , thereby reducing its occupancy cost Occupancy costs are the whole life costs of buildings and their associated land from occupancy until disposal. These costs may be incurred on a regular or irregular basis. Occupancy costs are those costs related to occupying a space including; rent, real estate taxes, personal by approximately $900,000 per year. 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 May 6, 2003 by dialing (877) 519-4471 for domestic callers and (973) 341-3080 for international callers, passcode 3866070. About First Virtual Communications Headquartered in Santa Clara, California, First Virtual Communications is a premier provider of next generation web conferencing and collaboration solutions. It delivers award-winning integrated communications solutions that address the needs of business people who need to work together remotely to collaborate, train, demonstrate or sell. The Company has defined the next generation of web conferencing by adding optional video with easier enterprise deployment and a potentially greater return on investment. The Company's Click to Meet(TM) products provide business quality communication by supporting a wide range of industry standards and works in existing customer environments. The Company's solutions integrate seamlessly with existing tools and methodologies, such as email and web browsing See browse. , while extending the advantages of 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 and collaboration environments, such as MSN Messenger Microsoft's instant messaging (IM) service, which provides text messaging and voice calling. Part of the MSN Network, MSN Messenger clients are available for non-XP versions of Windows, Mac, Pocket PC and MSN TV. For Windows XP, the IM client is Windows Messenger. and Microsoft Exchange Messaging and groupware software for Windows from Microsoft. Exchange Server is an Internet-compliant e-mail system that runs under Windows NT/2000 and Windows Server 2003. It can be accessed by Web browsers, the Exchange client, versions of Outlook and the earlier Windows Inbox. . The Company's innovative solutions are deployed in over 1,400 customer sites worldwide, including Fortune 500 companies, government agencies and service providers with installations of up to 8,000 seats. Additional information about First Virtual Communications can be found on the Web at http://www.fvc.com. 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 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: 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, First Virtual Communications' variability of operating results, market acceptance of 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 First Virtual Communications' public filings with the Securities and Exchange Commission, including the Company's report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2002. All trademarks are recognized.
First Virtual Communications, Inc.
Condensed Consolidated Balance Sheets
(in thousands; unaudited)
March 31, December 31,
2003 2002
ASSETS
Current assets:
Cash and cash equivalents $7,057 $8,352
Short-term investments 81 83
Accounts receivable 3,580 4,080
Inventory 293 613
Prepaids and other current assets 438 406
Total current assets 11,449 13,534
Property and equipment, net 1,934 2,197
Other assets 298 293
Intangible assets, net 3,679 3,736
$17,360 $19,760
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 1,268 1,192
Accrued liabilities 4,963 5,139
Deferred revenue 6,498 6,656
Total current liabilities 12,729 12,987
Stockholders' equity:
Common stock 40 40
Additional paid-in capital 118,531 118,531
Accumulated other comprehensive income
(loss) (218) (210)
Accumulated deficit (113,722) (111,588)
Total stockholders' equity 4,631 6,773
$17,360 $19,760
First Virtual Communications, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data; unaudited)
Three months ended
March 31,
2003 2002
Revenue $5,377 $6,601
Cost of revenue 831 1,348
Gross profit 4,546 5,253
Operating expense:
Research and development 2,487 2,757
Sales and marketing 2,593 1,915
General and administrative 1,627 2,284
Total operating expense 6,707 6,956
Operating loss (2,161) (1,703)
Other income, net 27 44
Minority interest in consolidated subsidiary - (15)
Net loss $(2,134) $(1,674)
Basic and diluted net loss per share $(0.05) $(0.05)
Shares used in computing basic and diluted
net loss per share 40,484 33,380
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