Viewpoint Reports Fourth Quarter Results
NEW YORK-February 13, 2002-Viewpoint Corporation (Nasdaq: VWPT), a world leader in innovative graphics software, today reported net revenues for the fourth quarter ended December 31, 2001 of $4.5 million as compared to $2.1 million of revenues for the fourth quarter of 2000. The results represent a sequential growth of 13 percent over the $4.0 million of net revenues during the third quarter of 2001.
The Company reported a quarterly "cash earnings" loss (defined as loss before minority interest in loss of subsidiary and excluding depreciation, amortization, goodwill impairment, non-cash stock-based compensation charges, non-cash sales and marketing charges and the write-down of acquired in-process research and development costs) of $2.6 million or $0.07 per share for the fourth quarter of 2001, compared to a loss of $13.8 million or $0.43 per share for the fourth quarter of 2000 and a loss of $4.8 million or $0.12 per share for the third quarter of 2001. In addition, the Company reported a net loss applicable to common stockholders of $17.0 million or $0.42 per share for the quarter, as compared to $16.7 million or $0.52 per share in the fourth quarter of 2000 and $11.5 million or $0.29 per share in the third quarter of 2001.
For the year ended December 31, 2001, the Company reported net revenues of $14.0 million, as compared to $3.6 million in 2000. Cash earnings loss in 2001 was $19.1 million or $0.49 per share versus a loss of $24.8 million or $0.86 per share in 2000. Net loss applicable to common stockholders for the year ended December 31, 2001 was $52.4 million or $1.34 per share versus $56.4 million or $1.96 per share in 2000.
Cash and marketable securities on December 31, 2001 totaled $15.4 million compared to $29.0 million on December 31, 2000 and $18.7 million on September 30, 2001. The Company continues to carry no long-term debt.
Recent Events and Quarter Highlights:
* 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 animation within their advertising formats and interactive programming guide. Cablevision`s use of the Viewpoint vector graphics engine is expected to lead to future compatibility with Viewpoint`s other rich media types, including: photo-realistic 3D, 2D ZoomView and object movies, among others.
* The Company effected a 19% reduction in its cash expenses (defined as cost of revenues and the following operating expenses, excluding non-cash stock-based compensation charges: sales and marketing, research and development and general and administrative). Cash expenses were $7.2 million in the fourth quarter of 2001, versus $9.0 million during the previous quarter.
* In furtherance of the Company`s indirect sales strategy, the Company entered into a license agreement under which the Company licensed certain of its products to a long-time, leading distributor of 3D animation software. The Company recorded revenue of $750,000 for this transaction in the fourth quarter and, after certain minimum revenue targets are met, the Company will share in future revenues derived from sublicenses of the products. The distributor will bear all marketing and sales costs. The Company expects this type of transaction to lead to higher margins over time.
* Compaq signed a multi-year, enterprise-wide license agreement with Viewpoint which renders Viewpoint the preferred rich media choice across Compaq`s entire network of Web sites and partner Web sites.
* In conjunction with J. Walter Thompson, Viewpoint created the interactive feature of the 2002 Ford Explorer Web site - a demonstration of the vehicle`s newest innovations in interactive VET. Featuring the independent rear-suspension, power-adjustable brake and accelerator pedals and side curtain airbags, the extended narrative is completely interactive, driven by users and can be viewed from any angle. The demonstration can be seen at: http://www.fordvehicles.com/suvs/explorer/3Dviews
* Herman Miller launched their new RED Plan-it office furniture configuration tool in VET 3D. Developed by Michigan-based DotsInMotion, the online configurator allows Herman Miller customers to design workstations and instantaneously see the results and related pricing. This promotion relies on Viewpoint`s XML envelope which allows a real-time exchange of data and dynamic content creation that no other rich media technology can replicate. The site is located at: http://www.hermanmillerred.com/planit
CONFERENCE CALL
The company has scheduled a conference call to discuss the fourth quarter financial results for 5 p.m. (EST) today.
Conference call details:
Date/Time: Wednesday, February 13, 2001 5:00 p.m. (EST)
Telephone Number: 800-530-8983
Reservation Number: 20326387
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 http://www.viewpoint.com.
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 assurance that Cablevision will use the Company`s vector graphics animation within advertising formats and interactive programming guide, that Cablevision`s use of the Company`s vector graphics engine will lead to future compatibility with the Company`s other rich media types, or that the type of transaction in which Viewpoint licenses certain products to distributors will lead to higher incremental margins over time.
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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