Net One Systems Invests $1.6 Million in First Virtual Communications, Inc.
Business Editors/High-Tech Writers
REDWOOD CITY, Calif.--(BUSINESS WIRE)--Oct. 10, 2003
First Virtual Communications (Nasdaq: FVCX), a premier provider of rich media web conferencing and collaboration solutions, today announced that Net One Systems, the Company's exclusive distributor in Japan, has invested $1.6 million in the Company.
The investment agreement between the parties resulted in the issuance to Net One of 642,921 shares of the Company's common stock at $2.45 per share and the return by Net One to the Company of $1.6 million of products previously purchased. The Company had deferred recognition of the revenues associated with the sale of those products, recording the value as Deferred Revenue in the current liabilities section of the balance sheet.
This transaction did not provide additional cash to the Company, but it did result in a net reduction in liabilities and a net increase in Stockholders Equity for First Virtual.
About First Virtual Communications
First Virtual Communications is a premier provider of rich media web conferencing and communications solutions. The Company's award-winning Click to Meet(TM) product line is enterprise-class software that enables corporate, education, healthcare and government customers worldwide to present, share, sell, train and collaborate. Click to Meet integrates the user's choice of data, audio and multipoint interactive video into existing work environments and into everyday communication tools such as instant messaging, web browsing and e-mail. Click to Meet software solutions are widely deployed in over 1,500 customer locations and excel in such challenging environments such as military intelligence, emergency response, disaster recovery, corporate training and geographically dispersed tele-working locations, among others. Headquartered in Redwood City, California, First Virtual Communications has operations in France, United Kingdom, Japan and China. More information about First Virtual Communications can be found at www.fvc.com or by calling 1-800-728-6337 or +1-650-801-6500 outside North America.
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 continued listing of the Company's securities on The Nasdaq SmallCap Market, the Company's ability to raise additional capital and the reduced liquidity of its capital stock if its securities are de-listed from The Nasdaq SmallCap Market, 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 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-Q for the three month period ended June 30, 2003.
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