8x8 2001 Annual Report Download - page 61

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NETERGY NETWORKS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
The following table illustrates net revenues by groupings of similar products:
The following illustrates net revenues by geographic area. Revenues are attributed to countries based on the destination of shipment (in
thousands):
No customer represented greater than 10% of total revenues for the fiscal years ended March 31, 2001, 2000, and 1999.
NOTE 14 -- INVENTORY CHARGES
In the fourth quarter of fiscal 1999, the Company determined that a combination of factors including the high cost of maintaining a consumer
distribution channel, the slower than expected growth rate of the consumer videophone market, and the low gross margins typical of a
the Company announced in April 1999 that it would cease production of the ViaTV product line and withdraw from its distribution channels
over the subsequent several quarters. In conjunction with this decision, the Company recorded a $5.7 million charge associated with the write-
off of ViaTV videophone inventories in the fourth quarter of fiscal 1999.
NOTE 15 -- SUBSEQUENT EVENT
On April 6, 2001, the Company, along with Sun Microsystems, Inc., Netscape Communications Canada Inc., Burntsand Inc., and Intraware
Canada Inc., was sued by Milinx Business Services, Inc. and Milinx Business Group Inc. (collectively, Milinx) in the Supreme Court of British
Columbia, Canada (the Court). Milinx has alleged that the Company failed to perform certain contractual obligations and knowingly
misrepresented the capabilities of its products. The lawsuit seeks general, special, and aggravated damages
56
YEAR ENDED MARCH 31,
-----------------------------
2001 2000 1999
------- ------- -------
Videoconferencing semiconductors.................... $ 9,478 $11,323 $10,302
IP telephony semiconductors......................... 1,878 37 --
Consumer videophone systems......................... 105 3,000 12,935
Video monitoring systems............................ 915 6,006 2,952
Media hub systems................................... 432 451 --
------- ------- -------
Product revenues.......................... 12,808 20,817 26,189
------- ------- -------
Videoconferencing licenses and royalties............ 3,237 4,318 4,248
IP telephony licenses and royalties................. 825 179 --
Nonrecurring engineering fees....................... -- -- 1,245
Hosted iPBX licenses................................ 198 70 --
Professional services............................... 1,160 -- --
------- ------- -------
License and other revenues................ 5,420 4,567 5,493
------- ------- -------
Total revenues............................ $18,228 $25,384 $31,682
======= ======= =======
YEAR ENDED MARCH 31,
-----------------------------
2001 2000 1999
------- ------- -------
United States......................................... $ 5,632 $13,381 $18,116
Europe................................................ 5,862 5,808 5,393
Japan................................................. 1,188 2,351 4,227
Other................................................. 5,546 3,844 3,946
------- ------- -------
$18,228 $25,384 $31,682
======= ======= =======