Viewpoint Reports First Quarter Results Cash Loss Narrows to $1.9 million
NEW YORK--May 1, 2002-Viewpoint Corporation (Nasdaq: VWPT), a world leader in innovative graphics software, today reported revenues for the first quarter ended March 31, 2002 of $4.9 million as compared to $2.8 million of revenues for the first quarter of 2001 and $4.5 million of revenues during the fourth quarter of 2001.
The Company reported a quarterly, "cash earnings" loss (defined as net loss from continuing operations, excluding depreciation, amortization, impairment of goodwill and other intangible assets and non-cash stock-based compensation charges) of $1.9 million or $0.05 per share for the quarter, compared to a loss of $5.8 million or $0.15 per share for the first quarter of 2001 and a loss of $2.6 million or $0.07 per share for the fourth quarter of 2001. In addition, the Company reported a GAAP net loss of $11.0 million or $0.27 per share for the quarter (inclusive of a $6.3 million impairment of goodwill and other intangible assets charge), as compared to $12.0 million or $0.32 per share in the first quarter of 2001 and $17.0 million or $0.42 per share in the fourth quarter of 2001 (inclusive of a $7.9 million impairment of goodwill charge).
The first quarter continued our trend of revenue growth and declining cash expenses, commented Robert E. Rice Chairman and CEO of Viewpoint Corporation. Very importantly, we also launched critical new revenue generating initiatives, the Adobe Photoshop ZoomView Partner Portal and the Cablevision transaction, which we expect will soon give rise to incremental, high margin revenue streams.
The Company continued to reduce its cash expenses which dropped to $6.8 million for the quarter from $7.2 million and $9.0 million in the previous two quarters, respectively.
Cash and marketable securities on March 31, 2002 totaled $12.8 million compared to $15.4 million on December 31, 2001. In addition, the Company is scheduled to receive a $2.5 million contractual payment, with a customer option for an additional $500,000, during the second quarter. The Company continues to carry no long-term debt.
The current quarter revenues include $1.6 million resulting from an amendment in the Company`s contract with AOL, which did not change payment dates but did result in the Company recording revenues when payments are due, as contrasted to the partial deferral of those payments which would otherwise have occurred.
Recent Events and Quarter Highlights:
Viewpoint`s technology was bundled in the releases of both Adobe`s Photoshop 7.0 and Adobe`s Atmosphere software. Photoshop 7.0 offers native ZoomView export and a direct link for Adobe users to purchase a broadcast license from Viewpoint`s Partner Portal. For just 10 dollars per image per month, customers can display their interactive, zoomable 2D digital images online
Cablevision reached an agreement with Viewpoint to put Viewpoint`s technology onto Cablevision`s new television set-top boxes. Cablevision plans to use Viewpoint`s lightning-fast vector graphics engine within their advertising formats and interactive programming guide. The agreement envisions an ongoing license fee calculated in cents, per subscriber, per month
AOL began a staged rollout of Viewpoint-enabled content on the AOL service. The Viewpoint Media Player continues to ship as part of AOL version 7.0 and within computers preloaded with the AOL service.
The growth in the distribution of the Viewpoint Media Player plug-in continues to escalate. It is estimated that the 50 million plug-in download level has been surpassed, which the Company believes is a milestone that will enable the advertising industry to launch broad-based Internet advertising campaigns.
CONFERENCE CALL
The Company has scheduled a conference call to discuss the first quarter financial results for 5 p.m. (EST) today.
Conference call details:
Date/Time: Wednesday, May 1, 2002 5:00 p.m. (EST)
Telephone Number: 800-585-9271
Reservation Number: 20477333
It is recommended that participants call at least 10 minutes before the call is scheduled to begin. The conference call can also be accessed on the Internet through CCBN at www.companyboardroom.com.
A replay of the conference call in its entirety will be available approximately one hour after its completion for 48 hours thereafter by calling 800-633-8284 and entering the above reservation number.
About Viewpoint
Viewpoint Corporation (Nasdaq: VWPT) is a leading provider of interactive media technologies and services. Its graphics operating system platform, the Viewpoint Media Player, has been licensed by Fortune 500 companies for use in online, offline and embedded applications serving a wide variety of needs, including: business process visualizations, marketing campaigns, rich advertising and product presentations. The Company also provides cross media digital solutions for film, broadcast television and games. Headquartered in New York City, the Company also has offices in London, Los Angeles and Salt Lake City. Visit the Viewpoint Web site at .
This press release contains forward-looking statements and similar expressions that reflect Viewpoint`s current expectations about its future performance, and are subject to risks, uncertainties and other factors that could cause Viewpoint`s actual performance to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors include those described in the Company`s filings and reports on file with the Securities and Exchange Commission as well as the lack of assurances that the Company`s new revenue generating initiatives will soon give rise to incremental, high margin revenue streams, that the Company will soon start to benefit from its efforts in Internet advertising and enterprise solutions, that Cablevision will use the Company`s vector graphics engine within Cablevision`s advertising formats and interactive programming guide, or that the level of plug-in downloads will impact the ability of the advertising industry to pursue Internet advertising campaigns.
Viewpoint and Viewpoint Experience Technology are either registered trademarks or trademarks of Viewpoint Corporation. Other product and company names herein may be trademarks of their respective owners. Copyright 2002 Viewpoint Corporation. All rights reserved.
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