WebEx 2002 Annual Report Download - page 16

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
When used in this Report, the words “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,”
“estimates” and similar expressions are intended to identify forward-looking statements. These are
statements that relate to future periods and include, but are not limited to, statements as to our ability to
enhance the quality and variety of real-time communications, expected benefits of our products and
services, our ability to introduce new product offerings and increase revenue from existing products, our
ability to integrate current and emerging technology into our service offerings, expected expenses
including those related to sales and marketing, research and development and general and administrative,
anticipated increase in our customer base, expansion of our service offerings and service functionalities,
ability to reduce operating expenses, expected revenue levels and sources of revenue, expected impact, if
any, of legal proceedings, expected increases in headcount, the adequacy of liquidity and capital resources,
the sufficiency of our cash reserves to meet our capital requirements, expected growth in business and
operations, our ability to realize positive cash flow from operations, the ability of cash generated from
operations to satisfy our liquidity requirements, our ability to realize net earnings, and the effect of recent
accounting pronouncements. Forward looking statements are subject to risks and uncertainties that could
cause actual results to differ materially from those projected. These risks and uncertainties include, but
are not limited to, our dependence on key products and/or services, demand for our products and services,
our ability to attract and retain customers and distribution partners for existing and new services, our
ability to expand our operations internationally, our ability to expand our infrastructure to meet the
demand for our services, our ability to control our expenses, our ability to recruit and retain employees
particularly in the areas of sales, engineering, support and hosting services, the ability of distribution
partners to successfully resell our services, the economy, the strength of competitive offerings, the prices
being charged by those competitors, the risks discussed below and the risks discussed in “Factors that May
Affect Results” below. These forward-looking statements speak only as of the date hereof. We expressly
disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in our expectations with regard thereto or any change in
events, conditions or circumstances on which any such statement is based.
Overview
We develop and market services that allow end-users to conduct meetings and share software applications,
documents, presentations and other content on the Internet using a standard web browser. Integrated telephony
and web-based audio and video services are also available using standard devices such as telephones, computer
web-cameras and microphones.
We commenced operations under the name Silver Computing, Inc. in February 1995. We changed our name
to Stellar Computing Corporation in June 1997, ActiveTouch Systems, Inc. in December 1997, ActiveTouch,
Inc. in May 1998, and WebEx, Inc. in December 1999. In July 2000, we reincorporated in Delaware under the
name WebEx Communications, Inc. We released interactive communications software built on our technology in
early 1998, and our business at that time was focused on licensing software to end-users. We began offering
WebEx Meeting Center, our first real-time, interactive multimedia communications service, in February 1999
and began selling the service to customers and distribution partners. With WebEx Meeting Center, our business
focus became providing customers and distribution partners access to our hosted services under subscription and
other service arrangements, and we discontinued licensing software to end-users. We also made available a
subset of our service for free at www.webex.com.
Since February 1999, our activities have been focused on continuing to enhance and market our WebEx
Interactive Services and our WebEx Multimedia Switching Platform, developing and deploying new services,
expanding our sales and marketing organizations, and deploying our global WebEx Media Tone Network. We
currently sell the following services: WebEx Meeting Center, WebEx Meeting Center Pro, WebEx Training
Center, WebEx Support Center, WebEx OnStage and WebEx Enterprise Edition. In addition, we currently
provide to existing customers, though no longer offer for sale generally, a service called WebEx Business
Exchange.
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