VCON reports sliding revenues and climbing losses

But managament retains optimism as interest in videoconferencing revives after September 11 attacks on U.S.
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Herzliya-based VCON (Nouveau Marche:022021) reported dropping income for the third quarter and write-offs of inventory.

The company ended the third quarter with a 33% drop in revenue to $6.1 million, compared with $9.2 million in the parallel.

Excluding inventory write-offs and one-time restructuring charges, VCON posted an operating loss of $669,000, compared with losing almost half a million in the parallel quarter of 2000.

For the the company VCON wrote off $917,000 worth of inventory and took a one-time charge of $679,000 on restructuring. These items increased its quarterly net loss to $2.3 million, almost five times its loss in the parallel quarter.

For the nine months VCON's revenues are $19 million, down 25% from the parallel. Its net loss is $11.6 million, almost five times the loss incurred in the first nine months of 2000.

The company, which makes IP-based video solutions, retains optimism despite the sliding results, due to the surge of interest in videoconferencing after the September 11 terror attacks on the U.S. Surging interest takes time to translate into concrete sales, the company's management points out.

At the end of the quarter VCON had $4.1 million cash, down $700,000 from the end of 2000, after implementing cost-cutting measures.