Global Village Issues Preliminary Fiscal Fourth Quarter Financial Results.SUNNYVALE Sunnyvale, city (1990 pop. 117,229), Santa Clara co., W Calif., near San Francisco; settled 1849, inc. 1912. A city in Silicon Valley, its many manufactures include semiconductors; machinery and instruments; electrical, electronic, and aerospace products; , Calif.--(BUSINESS WIRE)--April 14, 1998--Global Village Communication, Inc., (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :GVIL) today announced preliminary financial results for the fourth quarter ended March 31, 1998. Revenues for the fiscal fourth quarter 1998 are anticipated to be approximately $12 million, with an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. , before other gains and charges, of $2.5-$3.0 million, or 15-18 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . This compares to revenues in the fourth quarter last year of $19.0 million, with net income, before one time gains, of $73,000 or break-even ($0.00) per share. Final financial results will be announced on May 18, 1998. "As we announced in January January: see month. , revenues for the fourth quarter were expected to be lower than the previous quarter. Significantly reduced OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and shipments to Apple during this quarter, the transition to V.90 products, and a continued decline in the Macintosh market all contributed to the lower sequential revenues," said Neil Selvin, president and chief executive officer of Global Village Communication. On March 31, 1998, Global Village announced that it was selling its modem business to Boca Research for $10 million in cash and notes. The sale is likely to result in a one-time gain which will be accounted for in the quarter in which the transaction closes, which is expected in fiscal Q1 1999. "While revenues in Q4 were about what we expected, today's market environment makes it increasingly difficult to return to a profitable growth path as a stand-alone modem company," said Neil Selvin. "In today's modem industry, larger entities can take advantage of purchasing volumes and manufacturing efficiency which are critical to enhancing one's competitive position. With our current level of modem business and the financial condition of the company, our opportunity to become profitable, to grow our modem business and fund our new server product line is not achievable. By combining the software skills, brand strength and reliability of Global Village's products with the manufacturing skills and product breadth of Boca Research, we are firmly convinced that Global Village customers will be better served. "By focusing the rest of the company's attention on creating value-added products in a growing market, and with the additional cash provided by the sale of the modem business, our stockholders have a better opportunity to see the company's value grow than if we remain a stand-alone, Macintosh modem company," Selvin added. On March 31, 1998, the Company announced that it is changing its business strategy and would introduce a family of communications servers See network access server, modem server, terminal server and communications controller. (operating system) Communications Server - IBM's rebranding of ACF. that integrate Internet access See how to access the Internet. , routing, remote access, fax server and shared modem capabilities into a single, easy-to-use product for the growing small and medium size office market. On April 7, the Company also announced it would change its name to OneWorld Systems, Inc. and trade on a new NASDAQ ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors (OWLD OWLD Obligation Work Limiting Date ) after the completion of the sale of its modem business to Boca Research. About Global Village Communication Currently with over 8 million customers, Global Village Communication, Inc. (NASDAQ:GVIL) is a leading supplier of integrated communication solutions for Windows and Macintosh personal computer users. Global Village sells its products directly and through leading VARs, retailers and distributors worldwide. For more information, please visit the Global Village web site at http://www.globalvillage.com. -0- Portions of this news release contain 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. . Investors are cautioned that all forward-looking statements involve risks and uncertainties. Specifically, the agreement between Boca Research and Global Village is subject to certain closing conditions, including the receipt of consents for both companies' lenders, no material adverse change in the companies' businesses, and the approval of Global Village stockholders. CONTACT: Global Village Communication Heidi Palmer, 408/523-2204 heidi_palmer@globalvillage.com |
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