Global Village Reports Second-Quarter 1997 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. 15, 1996--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 the second quarter of fiscal 1997, ended September September: see month. 30. Net revenue was $32.3 million, compared with $30.6 million in the same period of 1995. Net income was $0.4 million, or 2 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 includes a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. net gain of $0.6 million from the discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action. DISCONTINUANCE, pleading. A chasm or interruption in the pleading. 2. of its enterprise network server operation based in the U.K. and a one-time charge of $0.3 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the settlement of two lawsuits. Excluding the one-time charges, net income was $90,000 or 1 cent per share. This compares with net income of $2.3 million, or 13 cents per share a year ago. Revenues for the first six months of fiscal 1997 were $60.7 million, compared with $58.2 million for the same period a year ago. Net loss, including the one-time charges, was $4.7 million, or 28 cents per share, compared with net income of $3.9 million, or 22 cents per share, for the same period last year. "During the second quarter, we took aggressive steps to improve the performance and profitability of the company," said Neil Selvin, president and chief executive officer. "While the recovery is not complete, we have implemented a number of changes that have brought the company back close to a break-even point break-even point - In the process of implementing a new computer language, the point at which the language is sufficiently effective that one can implement the language in itself. . Critical steps taken during the last ninety days include discontinuing the enterprise network server business, implementing a number of aggressive cost controls, and introducing several new products for Windows and Macintosh personal computers. "Toward the end of the quarter, we decided to put the enterprise network server operation in the U.K. up for sale, and as a result, we are accounting for it as a discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. ," added Selvin. "We will continue to develop personal ISDN ISDN in full Integrated Services Digital Network Digital telecommunications network that operates over standard copper telephone wires or other media. products. However, the network server portion of the business is aimed at a different customer base and requires a different distribution channel than our core business. Therefore, it is inconsistent with our focus on personal and small business communications products." New Windows and Macintosh Products During the quarter, Global Village announced several new Windows and Macintosh products which reinforce the company's strategy to expand its Windows-based product line while maintaining solid leadership on the Macintosh platform. New Windows products included: -- NewsCatcher, the first wireless Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the receiver with multimedia delivery of news and information from the Internet, 24 hours a day. -- A major upgrade to its FocalPoint integrated communications software (communications, software) communications software - Application programs, operating system components, and probably firmware, forming part of a communication system. These different software components might be classified according to the functions within the Open Systems , which integrates fax, data, e-mail, Internet, voice mail, speakerphone speak·er·phone n. A telephone or telephone attachment that contains both a loudspeaker and a microphone, allowing several persons to participate in a call at the same time without the telephone receiver being held. Noun 1. and paging capabilities in a single interface. -- A new release of its FaxWorks Server 2.0 for Windows NT (Windows New Technology) A 32-bit operating system from Microsoft for Intel x86 CPUs. NT is the core technology in Windows 2000 and Windows XP (see Windows). Available in separate client and server versions, it includes built-in networking and preemptive multitasking. , an easy-to-use, scalable and cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. fax communication solution for small to medium-sized Me´di`um-sized` a. 1. Having a medium size; as, a medium-sized man s>. Adj. 1. medium-sized - intermediate in size medium-size, moderate-size, moderate-sized businesses and departments within large corporations. -- GlobalTransfer 1.0, an easy-to-use file transfer program for Windows 95 and Macintosh systems that gives computer users a more reliable, immediate and inexpensive way to share information using their modems. New products for the Macintosh platform included a 33.6 kbps version of its award winning 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 fax/modems for desktop users, and a new speakerphone modem for the Macintosh, announced yesterday, that breaks new ground in merging computer and telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. functions. This new TelePort Speakerphone Edition is the first speakerphone modem that can actually be used as a standalone stand·a·lone adj. Self-contained and usually independently operating: a standalone computer terminal. speakerphone, even when the computer is turned off. About Global Village Communication, Inc. Global Village (NASDAQ: GVIL) is a leading supplier of integrated communication solutions for personal computer users. The company's broad product offerings include software that integrates fax, data, e-mail, Internet, voice mail, speakerphone and paging capabilities for individual users; communication servers that combine fax, remote access and network modem A modem shared by all users in a network. See network access server. for small businesses and workgroups; fax/modems for individual users; Integrated Services Digital Network Integrated services digital network (ISDN) A generic term referring to the integration of communications services transported over digital facilities such as wire pairs, coaxial cables, optical fibers, microwave radio, and satellites. products for individuals and small businesses, and wireless Internet receivers that provide multimedia news, sports and weather information direct to the desktop. Global Village sells its products directly and through leading VARs, retailers and distributors worldwide. Users wanting more information about any of Global Village's products can visit their 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, 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 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. , Form 10-Q Form 10-Q See 10-Q. and the company's other filings with the Securities and Exchange Commission. -0-
GLOBAL VILLAGE COMMUNICATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Sept. 30,
1996 % 1995 %
(unaudited) (unaudited)
Net revenue $32,298 100.0 $30,636 100.0
Cost of revenue 21,762 67.4 17,098 55.8
Gross profit 10,536 32.6 13,538 44.2
Operating expenses:
Research & development 3,082 9.5 3,329 10.9
Marketing and sales 6,048 18.7 5,019 16.4
General and administrative 1,995 6.2 1,192 3.9
Loss on investment in
Global Center -- 0.0 -- 0.0
Total operating expenses 11,125 34.4 9,540 31.1
Income/(loss) from
continuing operations (589) (1.8) 3,998 13.1
Other income, net 323 1.0 205 0.7
Income/(loss) before income
taxes (266) (0.8) 4,203 13.7
Income taxes (93) (0.3) 1,303 4.3
Net income/(loss) from
continuing operations $ (173) (0.5) $2,900 9.5
Discontinued operations:
Loss from operations of
discontinued Global Village
Communication Ltd. $(1,565) (4.8) $ (597) (1.9)
Gain on disposal of Global
Village Communication Ltd.,
including provision of
approximately $900 for
operating losses during phase-out
period (including income tax
benefit of $9,000) $ 2,133 6.6 -- 0.0
Net income/(loss) $ 395 $2,303
Net income/(loss) per share
from continuing operations $ (0.01) $ 0.16
Net income/(loss) per share
from discontinued
operations $ 0.03 $(0.03)
Net income/(loss) per share $ 0.02 $ 0.13
Shares used in computing net
income per share 17,388 17,866
Six Months Ended Sept. 30,
1996 % 1995 %
(unaudited) (unaudited)
Net revenue $60,741 100.0 $58,247 100.0
Cost of revenue 43,488 71.6 32,140 55.2
Gross profit 17,253 28.4 26,107 44.8
Operating expenses:
Research & development 6,443 10.6 6,359 10.9
Marketing and sales 13,581 22.4 10,069 17.3
General and administrative 3,366 5.5 2,538 4.4
Loss from investment in
Global Center 2,191 3.6 -- 0.0
Total operating expenses 25,581 42.1 18,966 32.6
Income(loss) from
continuing operations (8,328) (13.7) 7,141 12.3
Other income, net 553 0.9 484 0.8
Income/(loss) before income
taxes (7,775) (12.8) 7,625 13.1
Income taxes (2,796) (4.6) 2,398 4.1
Net income/(loss) from
continuing operations $(4,979) (8.2) $5,227 9.0
Discontinued operations:
Loss from operations of
discontinued Global Village
Communication Ltd. $(1,822) (3.0) $(1,320) (2.3)
Gain on disposal of Global
Village Communication Ltd.,
including provision of
approximately $900 for
operating losses during phase-out
period (including income tax
benefit of $9,000) $ 2,133 3.5 $ -- 0.0
Net income/(loss) $(4,668) $ 3,907
Net income/(loss) per share from
continuing operations $ (0.30) $ 0.29
Net income/(loss) per share
from discontinued
operations $ 0.02 $ (0.07)
Net income/(loss) per share $ (0.28) $ 0.22
Shares used in computing net
income per share 16,766 17,823
GLOBAL VILLAGE COMMUNICATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
Sept. 30, 1996 March 31, 1996
(unaudited) (audited)
ASSETS
Current assets:
Cash and short-term investments $11,326 $37,719
Accounts receivable, net 20,503 12,449
Inventories, net 5,615 5,779
Income tax receivable 2,505 0
Deferred income taxes 11,384 2,384
Other current assets 2,055 1,998
Net assets of discontinued
operations 0 277
Total current assets 53,388 60,606
Property and equipment, net 8,811 10,055
Other assets 5,386 1,374
Total assets $67,585 $72,035
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $16,908 $18,046
Accrued and other liabilities 4,237 5,823
Income taxes payable 0 335
Net liabilities of discontinued
operations 4,238 0
Total current liabilities 25,383 24,204
Stockholders' equity 42,202 47,831
Total liabilities and
stockholders' equity $67,585 $72,035
CONTACT: Global Village Kevin Burr/Heidi Palmer, (408)523-2260/2204 (Media) kevin_burr burr (bur) bur. burr n. Variant of bur. burr 1. a plant seed capsule carrying many hooked structures which catch in animal coats thus promoting dissemination of the plant. @globalvillage.com heidi_palmer@globalvillage.com or Analysts Contact: Global Village Jim Walker Jim Walker (né James Donat Walker) (born 1955 in Edmonton) was the original drummer of Public Image Ltd. in 1978. In 1977 he played drums for Canadian punk band The Furies and moved to London in October 1977. (Analysts), (408) 523-2400 jim_walker@globalvillage.com or Demer IR Marianne Baldrica, (510) 938-2678 baldrica@demer-ir.com |
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