(May 13, 2004) Herzliya, Israel – VCON (Nouveau Marché ISIN Code: IL 00 108 30540), a worldwide leader in audio and videoconferencing solutions, today reports financial results for the first quarter of 2004. Revenues for the first quarter of 2004 were $4.2 million (€ 3.5 million) compared to $2.8 million (€ 2.3 million) in the first quarter of 2003, representing an increase of 51%. The company reports a loss from continuing operations of $2.0 million (€ 1.7 million) for the first quarter of 2004 compared to a net loss of $2.2 million (€ 1.8 million) for the first quarter of 2003. (All USD$ amounts in this press release are, for convenience, converted to EUR amounts based on an exchange rate of 1 € = 1.22 US$). Yair Shamir, Chairman and CEO of VCON explained, “We are satisfied by the rapid acceptance of our latest videoconferencing systems introduced during the first quarter of 2004 which we attribute to our products’ comprehensive feature list combined with attractive price-performance.” Mr. Shamir continued, “We expect continued interest in our new HD line of videoconferencing products, especially where large scale projects require the flexible and complete solutions that are unique to VCON’s offering.” Jack Wakileh, Chief Financial Officer of VCON, elaborated, “The losses of Q1 were partially related to our penetration strategy for our newly released products, which affected our gross margins and increased our sales and marketing expenses. We believe that this investment is essential for achieving and maintaining growth.” He added, “The closing of our $10 million private placement in April adds confidence in VCON’s ability to invest in growing its market share.” FINANCIAL TABLES FOLLOW: |
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About VCON
VCON develops and manufactures a variety of conferencing solutions that enable seamless communication and collaboration using all forms of interactive media. The company’s award-winning technology ensures the highest audio and video performance for organizations worldwide. VCON’s meeting and collaboration solutions include desktop and group videoconferencing products, audio conferencing products, data conferencing products and management systems. The company markets its products and services through a network of reseller partners, OEMS and value-added resellers around the world. VCON has worldwide headquarters in Israel and regional headquarters in Munich, Austin and Beijing. VCON is publicly traded on Le Nouveau Marché (ISIN Code: IL 00 108 30540).
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