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ViewCast
Announces Financial Results for First Quarter 2001
Year-over-Year
Revenues Grow 21%
DALLAS,
TX (May 3, 2001) - ViewCast Corporation (Nasdaq: VCST),
a leading provider of Internet and networked video solutions,
today reported financial results for its first quarter ended
March 31, 2001.
Revenues
for the quarter were $2.3 million, up 21% year-over-year
from $1.9 million reported for the quarter ending March
2000 and a sequential decrease from $2.6 million reported
for the December 2000 quarter. Revenues were dominated by
the company's subsystem products - Osprey® - as system
sales continued to be effected by a slowing economy and
softer corporate IT spending.
Net
loss for the first quarter was $2.5 million versus a net
loss of $2.1 million reported in the quarter ended March
31, 2000 and a modest increase from $2.3 million reported
in the previous quarter. Basic and diluted net loss per
share for the first quarter was $0.16, slightly increased
from $0.15 recorded for both the year ago period and December
2000 quarter.
"The
company has made progress on an annualized basis as indicated
by the 21% increase in revenues," said George Platt,
ViewCast's president & CEO. "On a quarterly basis
our revenue continues to be hampered by the current economic
slowdown, especially for our systems business. We are addressing
the situation with our previously announced 'reduction in
force' and refining our strategy for the near term. Industry
research indicates growing demand for video-related systems
in the long term. As IT spending rebounds, we believe we
are well positioned with products and services to address
this market opportunity. Osprey sales continue to grow,
and we generated an enthusiastic response from customers
at the National Association of Broadcasters convention last
week for our EZ Stream™ Service and Niagara™ Streaming
System offerings. As we assess the economic climate going
forward and its impact on our business, we will continue
to adjust our business model as warranted. The key priorities
are to contain operating costs and increase sales revenues.
We remain optimistic about our ability to produce improved
financial results in 2001."
The
company's cash and cash equivalents as of March 31, 2001
decreased from the prior quarter to $1.6 million. Total
assets were $10.6 million and working capital was approximately
$1.9 million. Besides sales, the major source of cash during
the first quarter included proceeds of $1.0 million from
a shareholder line of credit.
The
company will hold a conference call today, May 3, at 5:00
p.m. EST. ViewCast's management team will discuss the company's
first quarter results, the general business outlook and
trends going forward. To participate in the call, dial (212)
231-6007 (reservation #18736273).
Investors
can listen to the conference call over the Internet through
Vcall at www.vcall.com. For those who cannot listen to the
live broadcast, a replay will be available shortly after
the call at www.vcall.com. In addition, a playback of the
call will be available by phone. The replay can be accessed
by calling (800) 633-8284 (reference reservation #18736273).
International callers should call (858) 812-6440.
Business
Outlook
The following statements are forward-looking in nature and
are subject to risks and uncertainties. These statements
are based on current expectations, and are the company's
targets, not predictions of actual performance. The company's
performance has deviated, often materially, from its targets
as of the beginning of a quarter. The company will not update
these targets during the quarter or comment on its progress
in the quarter to analysts or investors until after it has
closed its books on the quarter. Any statements by persons
outside the company speculating on the progress of the quarter
will not be based on internal company information and should
be assessed accordingly by investors.
- As
the economy recovers, the company anticipates revenues
to continue to grow over the prior year primarily through
shipments of new products in both subsystems and systems.
ViewCast's new products, the Osprey® 2000 MPEG board
family and the Niagara professional encoding and decoding
systems, are now generally available. In addition, the
company expects to see revenue contribution in 2001 from
EZ Stream, ViewCast Online's first video and streaming
application service accessed over the Internet.
- With
its current product mix, the company anticipates gross
margins will continue on average in the mid 50% range.
- The
company expects that operating expenses will decline in
response to cost containment adjustments made during the
second quarter associated with the economic slowdown.
About
ViewCast Corporation
ViewCast develops products and services that provide video
networked solutions. ViewCast maximizes the value of video
through its core businesses: Osprey® Video provides
the streaming media industry's de facto standard capture
cards; ViewCast Systems integrates turnkey streaming and
video distribution systems; and ViewCast Online Solutions
delivers complete B2B solutions and video delivery for online
video communications. From streaming digital video on the
Internet to distribution of broadcast-quality video throughout
the corporate enterprise to comprehensive "click, create
and view" video software applications, ViewCast provides
the complete range of video solutions.
Visit
the company's Web site (http://www.viewcast.com)
for more information.
Safe
Harbor Statement
Certain statements, including those made by George Platt
and those regarding business outlook, contain "forward-looking"
information within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, which reflect the Company's
current judgment on certain issues. Because such statements
apply to future events, they are subject to risks and uncertainties
that could cause the actual results to differ materially.
Important factors which could cause the actual results to
differ materially include, without limitation, the following:
the ability of the Company to service its debt; continued
significant losses by the Company; the ability of the Company
to develop and market new products as technology evolves;
the ability of the Company to meet its capital requirements;
increased competition in the video communications market;
the ability of the Company to maintain current and develop
future relationships with third party resellers, manufacturers
and suppliers; the ability of the Company to meet governmental
regulations; and the ability of the Company to obtain and
enforce its patents and avoid infringing upon third parties'
patents. The company will not update the guidance or targets
given in these statements during the quarter or comment
on its progress in the quarter to analysts or investors
until after it has closed its books on the quarter. For
a detailed discussion of these and other cautionary statements
and factors that could cause actual results to differ from
the Company's forward-looking statements, please refer to
the Company's Prospectus filed on July 14, 2000 and its
reports on Form 10-K and 10-Q on file with the Securities
and Exchange Commission.
All
trademarks are property of their respective holders.
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