Global Village Reports Financial Results for Fourth-Quarter and Fiscal 1998 Year-End.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)--May 18, 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 reported its financial results for the fiscal fourth quarter and year ended March 31, 1998. These final results were consistent with the preliminary results announced by the company on April 14, 1998. Net revenue for the fourth quarter of fiscal 1998 was $12.3 million, compared with $19.0 million for the same period a year ago. Net loss for the quarter was $1.1 million, or a loss of six cents per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with net income of $5.5 million, or 32 cents per diluted share for the fourth quarter of fiscal 1997. Included in the net loss for the fiscal fourth quarter was a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. gain of $2.2 million on repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of a loan by the Company previously fully reserved and a one-time restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. related to the severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when of 25 employees. Excluding these items, the net loss would have been $2.9 million, or 17 cents per diluted share. Net revenue for the full year ended March 31, 1998, was $61.5 million, compared with $90.2 million for the previous year. Net loss for fiscal 1998 was $3.4 million, or a loss of 20 cents per diluted share, compared with a net loss of $39.9 million, or a loss of $2.38 per diluted share, for fiscal 1997. On March 31, 1998, Global Village announced a fundamental shift in business strategy and an agreement to sell the assets of its modem modem [modulator/demodulator], an external device or internal electronic circuitry used to transmit and receive digital data over a communications line normally used for analog signals. business to Boca Research, Inc. (NASDAQ:BOCA) for $10 million in cash and notes. The transaction, which is expected to close in the first quarter of fiscal 1999, will be accounted for as an asset sale and, is likely to result in a one-time gain in that quarter. Press releases issued on March 31 and April 7 discussed the Company's new strategy, which focuses on the growing small and medium-size Adj. 1. medium-size - intermediate in size medium-sized, moderate-size, moderate-sized sized - having a specified size office market. In June June: see month. or July July: see month. , the Company will 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 in a single, easy-to-use product. On April 7, 1998, the Company announced plans to change its name to OneWorld Oneworld is a worldwide airline alliance. As of 2007 it is the third largest after Star Alliance and SkyTeam. Member airlines and their affiliates enjoy a high degree of co-operation in schedueling, ticketing, code sharing, flight transfer operations, frequent flyer benefits, Systems, Inc. and trade its common stock on NASDAQ under a new ticker ticker An automated quotation system on which security transactions are reported after they occur on an exchange floor. Even though the newer systems are electronic and no longer actually tick, the name of the old mechanical device has stuck. symbol--OWLD--after the close of the transaction with Boca Research. "We believe that these actions will have a positive impact on both customers and stockholders," said Neil Selvin, president and chief executive officer of Global Village Communication. "For customers, the transaction will combine the software value, brand strength and reliability of Global Village products with the manufacturing expertise and product line breadth Breadth The percentage of assets or stocks advancing relative to those unchanged or declining. Also the number of independent forecasts available per year. A stock picker forecasting returns to 100 stocks every quarter exhibits a breadth of 400, assuming each forecast is of Boca Research. For stockholders, the Company's new focus on delivering value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: server products to the small and medium-size office markets, plus the additional cash generated by the sale, will provide a greater opportunity for increased value than remaining primarily a stand-alone (jargon) stand-alone - Capable of operating without other programs, libraries, computers, hardware, networks, etc. Exactly what is absent is presumed to be obvious from context. "We only run Windows on stand-alone PCs because it's too dangerous to run it on networked ones." Macintosh A family of desktop and laptop computers from Apple and the first computer to popularize the graphical user interface (GUI). The combination of Mac hardware and software has been consistent over the years, providing an ease of use that Mac users have enjoyed. modem company." Conference Call and Website Information for Investors A conference call will be held by the management of Global Village Communication to report and discuss the financial results for this period at 1:45 p.m. PDT/4:45 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT on Monday Monday: see week. , May 18. The call will last approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 30 minutes. To participate, please dial (719) 457-2637 approximately 10 minutes before the teleconference is scheduled to begin. In addition, the conference call audio will be replayed from Monday, May 18 at 6 p.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT until Tuesday Tuesday: see week. , May 26, 1998 at 7 p.m. PDT and can be heard by calling (402) 220-1005. The Company has also posted additional information for investors on its website at www.globalvillage.com. Investors are encouraged to review this information. 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. 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 from both companies' lenders, no material adverse changes in the companies' respective businesses and the approval of Global Village stockholders. -0-
GLOBAL VILLAGE COMMUNICATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended March 31,
1998 % 1997 %
-------- --------
(unaudited) (unaudited)
Net revenue $ 12,276 100.0% $ 18,967 100.0%
Cost of revenue 8,492 69.2% 11,500 60.6%
-------- ------- -------- ------
Gross profit 3,784 30.8% 7,467 39.4%
Operating expenses:
Research and development 2,484 20.2% 2,433 12.8%
Marketing and sales 3,263 26.6% 3,666 19.3%
General and administrative 1,107 9.0% 1,438 7.6%
Restructuring costs 240 2.0% -- --
Loss from investment
in Global Center -- -- -- --
-------- ------- -------- ------
Total operating expenses 7,094 57.8% 7,537 39.7%
Loss from continuing operations (3,310) -27.0% (70) -0.4%
Loss from sale of investment
in AirMedia, Inc. -- -- -- --
Gain from sale of investment
in GlobalCenter, Inc. -- -- -- --
Other income, net 2,235 18.2% 143 0.8%
-------- ------- -------- ------
Income/(loss) before
income taxes (1,075) -8.8% 73 0.4%
Provision for income taxes -- -- -- --
-------- ------- -------- -------
Net income/(loss) from
continuing operations (1,075) -8.8% 73 0.4%
-------- ------- -------- ------
Discontinued operations:
Loss from discontinued operation -- -- -- --
Gain/(loss) on disposal of
discontinued operations -- -- 5,460 28.8%
-------- ------- -------- -------
Net income/(loss) $ (1,075) -8.8% $ 5,533 29.2%
======== ======= ======== ======
Basic earnings per share:
Income/(loss) from
continuing operations $ (0.06) $ 0.00
Income/(loss) from discontinued
operations, net of taxes -- 0.33
======== ======
Net income/(loss) per share $ (0.06) $ 0.33
======== ======
Shares used in basic
per share computations 17,133 16,909
======== ======
Diluted earnings per share:
Income/(loss) from
continuing operations $ (0.06) $ 0.00
Income/(loss) from discontinued
operations, net of taxes -- 0.32
======== ======
Net income/(loss) per share $ (0.06) $ 0.32
======== ======
Shares used in diluted
per share computations 17,133 17,161
======== ======
Twelve Months Ended March 31
1998 % 1997 %
-------- --------
(audited) (audited)
Net revenue $61,468 100.0% $90,174 100.0%
Cost of revenue 42,204 68.7% 80,439 89.2%
-------- ------- -------- -------
Gross profit 19,264 31.3% 9,735 10.8%
Operating expenses:
Research and development 9,727 15.8% 12,008 13.3%
Marketing and sales 13,900 22.6% 28,900 32.0%
General and administrative 4,370 7.1% 7,367 8.2%
Restructuring costs 240 0.4% 1,298 1.4%
Loss from investment
in Global Center - - 2,191 2.4%
-------- ------- -------- -------
Total operating expenses 28,237 45.9% 51,764 57.4%
Loss from continuing
operations (8,973) -14.6% (42,029) -46.6%
Loss from sale of investment
in AirMedia, Inc. (2,074) -3.4% - -
Gain from sale of investment
in GlobalCenter, Inc. 3,691 6.0% - -
Other income, net 2,647 4.3% 776 0.9%
-------- ------- ------- -------
Income/(loss) before
income taxes (4,709) -7.7% (41,253) -45.7%
Provision for income taxes - - (5,401) -6.0%
-------- ------- -------- -------
Net income/(loss) from
continuing operations (4,709) -7.7% (35,852) -39.8%
-------- ------- -------- -------
Discontinued operations:
Loss from
discontinued operation - - (1,822) -2.0%
Gain/(loss) on disposal of
discontinued operations 1,331 2.2% (2,207) -2.4%
======== ======= ======== ========
Net income/(loss) $ (3,378) -5.5% $(39,881) -44.2%
======== ======= ======== ========
Basic earnings per share:
Income/(loss) from
continuing operations $ (0.28) $ (2.14)
Income/(loss)
from discontinued
operations, net of taxes 0.08 (0.24)
========= ========
Net income/(loss) per share $ (0.20) $ (2.38)
========= ========
Shares used in basic
per share computations 17,006 16,787
========= ========
Diluted earnings per share:
Income/(loss) from
continuing operations $ (0.28) $ (2.14)
Income/(loss)
from discontinued
operations, net of taxes 0.08 (0.24)
========= =========
Net income/(loss) per share $ (0.20) $ (2.38)
========= =========
Shares used in diluted
per share computations 17,006 16,787
========= ========
GLOBAL VILLAGE COMMUNICATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, 1998 March 31, 1997
Assets (audited) (audited)
Current assets:
Cash and short-term investments $ 3,097 $ 9,687
Accounts receivable, net 8,160 4,324
Inventories, net 2,350 2,071
Income tax receivable -- 7,665
Other current assets 253 343
------- -------
Total current assets 13,860 24,090
Property and equipment, net 4,049 6,929
Investment in AirMedia, Inc. -- 4,043
Other assets 64 138
------- -------
Total Assets $17,973 $35,200
======= =======
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 7,625 $15,971
Accrued and other liabilities 6,003 7,638
Line of credit borrowings -- 4,241
------- -------
Total current liabilities 13,628 27,850
Stockholders' equity 4,345 7,350
------- -------
Total Liabilities and
Stockholders' Equity $17,973 $35,200
======= =======
-0- CONTACT: Global Village Heidi Heidi has instinct for goodness. [Children’s Lit.: Heidi] See : Innocence Palmer palmer: see pilgrim. , 408/523-2204 heidi_palmer@globalvillage.com or Demer The Demer is an 85 km long river in eastern Belgium, right tributary of the Dijle. It flows through the Belgian provinces Limburg and Flemish Brabant. Its source is near Tongeren. It flows into the river Dijle in Werchter, Rotselaar municipality. IR Counsel Mary Mary, the mother of Jesus Mary, in the Bible, mother of Jesus. Christian tradition reckons her the principal saint, naming her variously the Blessed Virgin Mary, Our Lady, and Mother of God (Gr., theotokos). Her name is the Hebrew Miriam. McGowan McGowan or MacGowan may refer to:
mmcgowan@demer-ir.com |
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