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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 12b-25
NOTIFICATION OF LATE FILING
Commission file number 000-22235
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[ ] Form 10-K and Form 10KSB [ ] Form 11-K
[ ] Form 20-F [x] Form 10-Q and Form 10-QSB [ ] Form N-SAR
For period ended June 30, 2000
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[ ] Transition Report on Form 10-K and Form 10-KSB
[ ] Transition Report on Form 20-F
[ ] Transition Report on Form 11-K
[ ] Transition Report on Form 10-Q and Form 10-QSB
[ ] Transition Report on Form N-SAR
For transition period ended
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Read Attached Instruction Sheet Before Preparing Form. Please Print or
Type.
Nothing in this form shall be construed to imply that the Commission has
verified any information contained herein.
If the notification relates to a portion of the filing checked above,
identify the item(s) to which the notification relates: Not Applicable
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PART I
REGISTRANT INFORMATION
Full name of registrant: Video Network Communications, Inc.
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Former name if applicable: Objective Communications, Inc.
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Address of principal executive office (Street and number): 50 International
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Drive
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City, State, Zip Code: Portsmouth, New Hampshire, 03801
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PART II
RULE 12B-25(b) AND (c)
If the subject report could not be filed without unreasonable effort or expense
and the registrant seeks relief pursuant to Rule 12b-25, the following should be
completed. (Check box if appropriate.)
[X] (a) The reasons described in reasonable detail in Part III of this
form could not be eliminated without unreasonable effort or
expense;
[X] (b) The subject annual report, semi-annual report, transition report
on Form 10-K, 10-KSB, 20-F, 11-K or Form N-SAR, or portion thereof
will be filed on or before the 15th calendar day following the
prescribed due date; or the subject quarterly report on Form 10-Q,
10-QSB, or portion thereof will be filed on or before the fifth
calendar day following the prescribed due date; and
(C) The accountant's statement or other exhibit required by Rule
12b-25(c) has been attached if applicable.
PART III
NARRATIVE
State below in reasonable detail the reasons why Form 10-K, 10-KSB, 11-K, 20-F,
10-Q, 10-QSB, N-SAR or the transition report portion thereof could not be filed
within the prescribed time period. (Attach extra sheets if needed.)
The Registrant is unable to prepare all of the materials required in
order to permit an accurate and complete filing of its quarterly report on Form
10-QSB for the quarter ended June 30, 2000, on a timely basis, without
unreasonable effort and expense. The Registrant will file its Form 10-QSB no
later than August 18, 2000.
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PART IV
OTHER INFORMATION
(1) Name and telephone of person to contact in regard to this
notification.
Kimberly V. Mann (202)663-8281
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(Name) (Area Code)(Telephone Number)
(2) Have all other periodic reports required under Section 13 or 15(d)
or the Securities Exchange Act of 1934 or Section 30 of the Investment Company
Act of 1940 during the preceding 12 months or for such shorter period that the
registrant was required to file such report(s) been filed? If the answer is no,
identify report(s).
[X] Yes [ ] No
(3) Is it anticipated that any significant change in results of
operations from the corresponding period for the last fiscal year will be
reflected by the earnings statements to be included in the subject report or
portion thereof?
[X] Yes [ ] No
If so: attach an explanation of the anticipated change, both narratively
and quantitatively, and, if appropriate, state the reasons why a reasonable
estimate of the results cannot be made.
VIDEO NETWORK COMMUNICATIONS, INC.
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(Name of Registrant as Specified in Charter)
Has caused this notification to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: August 15, 2000 By: /s/ Robert H. Emery
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Name: Robert H. Emery
Title: Chief Financial Officer
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The Registrant's quarterly report on Form 10-QSB for the quarter ended June 30,
2000 will report significantly enhanced results of operations relative to the
corresponding period in the preceding fiscal year. See the attached Statements
of Operations and Balance Sheets.
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VIDEO NETWORK COMMUNICATIONS, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
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<TABLE>
<CAPTION>
For the three months ended For the six months ended
June 30, June 30,
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2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues:
Products $ 894,394 $ 749,968 $ 1,537,440 $ 1,405,425
Services 898,654 75,070 908,978 75,070
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1,793,048 825,038 2,446,418 1,480,495
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Cost of sales:
Products 502,473 319,818 1,027,104 688,520
Services 692,126 22,521 695,223 22,521
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1,194,599 342,339 1,722,327 711,041
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Gross margin 598,449 482,699 724,091 769,454
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Operating expenses:
Research and development 993,567 1,068,658 1,933,920 2,085,864
Selling, general and
administrative 1,297,567 1,049,036 2,347,131 2,272,627
--------- --------- --------- ---------
Total operating
expenses 2,291,134 2,117,694 4,281,051 4,358,491
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Loss from operations (1,692,685) (1,634,995) (3,556,960) (3,589,037)
Interest expense, net 51,889 1,687,168 105,514 2,147,745
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Net loss (1,744,574) (3,322,163) (3,662,474) (5,736,782)
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Cumulative Series B dividend -- (8,297) -- (22,672)
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Net loss attributable to common
stockholders $(1,744,574) $ (3,330,460) $ (3,662,474) $ (5,759,454)
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Net loss per common share
-- basic and diluted $ (.20) $ (1.71) $ (.41) $ (4.02)
============ ============= ============= =============
Weighted average shares outstanding
-- basic and diluted 8,878,117 1,944,127 8,907,970 1,433,186
============ ============= ============= =============
</TABLE>
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VIDEO NETWORK COMMUNICATIONS, INC.
BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
June 30, December 31,
2000 1999
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(Unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $1,458,363 $2,594,529
Accounts receivable, net 15,735 376,580
Inventory, net 4,630,813 4,913,115
Other current assets 122,110 107,379
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Total current assets 6,227,021 7,991,603
Property and equipment, net 954,724 1,304,785
Trademarks and patents, net 257,841 234,343
Other assets 68,309 68,309
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$7,507,895 $9,599,040
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $ 60,872 $ 20,000
Accounts payable 746,740 462,065
Deferred revenue 1,092,632 28,068
Accrued liabilities 797,582 858,785
Current portion of long term debt 2,471,530 1,685,536
Obligations under capital lease, current portion 13,927 7,798
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Total current liabilities 5,183,283 3,062,252
Long term debt 909,192 1,717,805
Obligations under capital lease 25,729 37,890
Commitments
Stockholders' equity:
Common stock, par value $.01, 30,000,000 shares authorized; 8,907,970 and
8,812,141 issued and outstanding at June 30, 2000 and December
31, 1999, respectively 89,080 88,121
Additional paid-in capital 57,440,997 57,170,884
Accumulated deficit (56,140,386) (52,477,912)
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Total stockholders' equity 1,389,691 4,781,093
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$7,507,895 $9,599,040
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</TABLE>
