EXHIBIT 99.1
[LETTER HEAD OF FIRST VIRTUAL COMMUNICATION (TM)] PRESS RELEASE
CONTACT: CONTACT:
Truman Cole Julia Schloss
Chief Financial Officer Investor Relations
408-567-7200 408-567-7200
tcole@fvc.com jschloss@fvc.com
FOR IMMEDIATE RELEASE
FIRST VIRTUAL COMMUNICATIONS ANNOUNCES FIRST QUARTER 2003 RESULTS
SANTA CLARA, CALIFORNIA - April 29, 2003 - First Virtual
Communications (Nasdaq: FVCX), a premier provider of rich media web
conferencing 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. 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. The
fourth quarter of 2002 also included a non-recurring, non-cash charge of $9.9
million, representing a charge for impairment of Goodwill and intangible assets
pursuant to FSAS 142 and 144.
"I was quite pleased with our performance in the first quarter,
historically our weakest quarter of the year," said Jonathan Morgan, 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 its Santa Clara,
California headquarters to new office space in Redwood City, California thereby
reducing its occupancy cost by approximately $900,000 per year.
First Virtual Communications Announces First Quarter 200 Results
April 29,2002
Page 2 of 4
Management will discuss the Company's first quarter financial results
during its quarterly conference call for investors at 5:00 p.m., 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.
- more -
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, while extending the
advantages of instant messaging and collaboration environments, such as MSN
Messenger and Microsoft Exchange. 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, 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 rich media and 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 for the year ended
December 31, 2002.
All trademarks are recognized.
- Financial Tables Follow -
First Virtual Communications Announces First Quarter 200 Results
April 29,2002
Page 3 of 4
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 Announces First Quarter 200 Results
April 29,2002
Page 4 of 4
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