Global Village Reports Fiscal Second Quarter 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)--Oct. 21, 1997--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 financial results for its second quarter of fiscal 1998, ended September September: see month. 30, 1997. Net revenue was $17.1 million, compared with $32.3 million for the same period of fiscal 1997. Net loss was $52,000, or breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations ($0.00) 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. compared to a net profit of $0.4 million, or two cents per share, for the same period a year ago. Excluding a net one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. gain of $1.6 million related to the sale of the company's investments in GlobalCenter, Inc. and Air Media Inc., the net loss would have been $1.7 million, or ten cents Ten Cents has several meanings:
Revenues for the first six-months of fiscal 1998 were $33.0 million, compared with $60.7 million for the same period a year ago. Net loss, including the one-time net gain, was $2.0 million, or twelve cents per share, compared with net loss of $4.7 million, or twenty-eight cents per share for the same six-month period last year. "We have largely completed our transition to 56K this past quarter, implemented a number of new 56K programs, and beat the Street estimate," said Neil Selvin, president and chief executive officer, Global Village Communication. "We began delivering on an 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 program with Apple for 56K modems for their new PowerMac See Power Mac. 6500, established a retail distribution agreement with CompUSA CompUSA, Inc. is a retailer and reseller of consumer electronics, technology products and computer services. CompUSA serves consumer retail, small-to-medium businesses, corporate, government and education customers. , the nation's largest computer retailer, and an exclusive agreement with Apple's subsidiary, Claris (Claris Corporation, Santa Clara, CA) A software subsidiary of Apple that was separated from the corporation (although mostly owned by it) in 1988 and then bought back in 1990. In 1998, Apple turned Claris Corporation into FileMaker, Inc., to focus on database and Web software. , to bundle To sell hardware and software as a combined product or to combine several software packages for sale as a single unit. Contrast with unbundle. See bundled software and bundling. the Macintosh OS 8 operating system operating system (OS) Software that controls the operation of a computer, directs the input and output of data, keeps track of files, and controls the processing of computer programs. with TelePort Verb 1. teleport - transport by dematerializing at one point and assembling at another science fiction - literary fantasy involving the imagined impact of science on society transport - move something or somebody around; usually over long distances 56 modems. The majority of our revenues came from 56K products. "We are pleased with the overall progress made this quarter," continued Selvin. "We offer the broadest 56K product line on the market, including the only Rockwell-based 56K modem/Ethernet PC card for Windows and Macintosh laptop computers A portable computer that has a flat LCD screen and usually weighs less than eight pounds. Often called just a "laptop," it uses batteries for mobile use and AC power for charging the batteries and desktop use. Today's high-end laptops provide all the capabilities of most desktop computers. . During the quarter, we won an Editor's Choice and other honors from MacUser MacUser is a fortnightly computer magazine published by Dennis Publishing Ltd. and licensed by Felden in the UK. In 1985 Felix Dennis’ Dennis Publishing, the creators of MacUser in the UK, licensed the name and “mouse-rating” symbol for MacUser to and MacAddict magazines. We continued to manage our channel inventory carefully, keeping an average of four to six weeks of product in the channel at any time. And we continued to manage 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. downward, while investing in some new product development areas." About Global Village Communication With over 8 million customers, Global Village Communication, Inc. (NASDAQ:GVIL) is a leading supplier of integrated communication solutions for Windows 95 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, The Village, 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, including, without limitation, announcements by the company's customers and competitors; customer acceptance of, and transition to, 56K products, including the company's 56K product line; product returns; risks related to delays in product development and new product introductions; rapidly changing technology; an intensely competitive market; market acceptance of new products; foreign operations; and general economic conditions. Each of these factors, and others, are discussed more fully in the company's last filed Form 10K, Form 10Q and the company's other filings with the Securities and Exchange Commission. -0-
GLOBAL VILLAGE COMMUNICATION, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three months ended Sept. 30,
1997 % 1996 %
(unaudited) (unaudited)
Net revenue $ 17,100 100.0% $ 32,298 100.0%
Cost of revenue 12,038 70.4% 21,762 67.4%
Gross profit 5,062 29.6% 10,536 32.6%
Operating expenses:
Research and development 2,722 15.9% 3,082 9.5%
Marketing and sales 3,210 18.8% 6,048 18.7%
General and administrative 1,043 6.1% 1,995 6.2%
Loss from investment in
GlobalCenter, Inc. -- -- -- --
Total operating expenses 6,975 40.8% 11,125 34.4%
Loss from operations (1,913) -11.2% (589) -1.8%
Loss from sale of investment
in AirMedia, Inc. (2,074) -12.1% -- --
Gain from sale of investment
in GlobalCenter, Inc. 3,691 21.6% -- --
Other income, net 244 1.4% 323 1.0%
Loss before income taxes (52) 0.0% (266) -0.8%
Provision for income taxes
(benefit) -- -- (93) -0.3%
Loss from continuing operations (52) 0.0% (173) -0.5%
Discontinued operations:
Loss from discontinued operations -- -- (1,565) -4.8%
Gain on disposal of discontinued
operation -- -- 2,133 6.6%
Net income (loss) $ (52) 0.0% $ 395 1.2%
Loss per share from continuing
operations $ (0.00) $ (0.01)
Income per share from
discontinued operations -- 0.03
Net income (loss) per share $ (0.00) $ 0.02
Shares used in computing per
share amounts 16,979 17,388
Six months ended Sept. 30,
1997 % 1996 %
(unaudited) (unaudited)
Net revenue $ 33,007 100.0% $ 60,741 100.0%
Cost of revenue 22,354 67.7% 43,488 71.6%
Gross profit 10,653 32.3% 17,253 28.4%
Operating expenses:
Research and development 5,144 15.6% 6,443 10.6%
Marketing and sales 7,003 21.2% 13,581 22.4%
General and administrative 2,451 7.4% 3,366 5.5%
Loss from investment in
GlobalCenter, Inc. -- -- 2,191 3.6%
Total operating expenses 14,598 44.2% 25,581 42.1%
Loss from operations (3,945) -12.0% (8,328) -13.7%
Loss from sale of investment
in AirMedia, Inc. (2,074) -6.3% -- --
Gain from sale of investment
in GlobalCenter, Inc. 3,691 11.2% -- --
Other income, net 301 0.9% 553 0.9%
Loss before income taxes (2,027) -6.1% (7,775) -12.8%
Provision for income taxes
(benefit) -- -- (2,796) -4.6%
Loss from continuing operations (2,027) -6.1% (4,979) -8.2%
Discontinued operations:
Loss from discontinued
operations -- -- (1,822) -3.0%
Gain on disposal of
discontinued operation -- -- 2,133 3.5%
Net income (loss) $ (2,027) -6.1% $ (4,668) -7.7%
Loss per share from continuing
operations $ (0.12) $ (0.30)
Income per share from
discontinued operations -- 0.02
Net income (loss) per share $ (0.12) $ (0.28)
Shares used in computing per
share amounts 16,935 16,766
GLOBAL VILLAGE COMMUNICATION, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
Sept. 30, 1997 March 31, 1997
(unaudited) (audited)
Assets
Current assets:
Cash and cash equivalents $ 3,022 $ 9,687
Accounts receivable, net 13,070 4,324
Receivable from sale of investment 3,691 --
Inventories, net 2,285 2,071
Income tax receivable -- 7,665
Other current assets 487 343
Total current assets 22,555 24,090
Property and equipment, net 5,374 6,929
Other assets 82 4,181
Total assets $28,011 $35,200
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $15,048 $15,971
Line of credit borrowings -- 4,241
Accrued and other liabilities 7,533 7,638
Total current liabilities 22,581 27,850
Stockholders' equity 5,430 7,350
Total liabilities and stockholders'
equity $28,011 $35,200
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 Marianne This article is about the symbol of France. For other uses, see Marianne (disambiguation). Marianne, a national emblem of France, is a personification of Liberty and Reason. Baldrica, 510/938-2678 baldrica@demer-ir.com |
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