-----BEGIN PRIVACY-ENHANCED MESSAGE-----
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Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001102624-06-000067.txt : 20060314
<SEC-HEADER>0001102624-06-000067.hdr.sgml : 20060314
<ACCEPTANCE-DATETIME>20060314090911
ACCESSION NUMBER:		0001102624-06-000067
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20060314
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20060314
DATE AS OF CHANGE:		20060314

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FORGENT NETWORKS  INC
		CENTRAL INDEX KEY:			0000884144
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373]
		IRS NUMBER:				742415696
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0731

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-20008
		FILM NUMBER:		06683619

	BUSINESS ADDRESS:	
		STREET 1:		108 WILD BASIN RD
		CITY:			AUSTIN
		STATE:			TX
		ZIP:			78746
		BUSINESS PHONE:		5124372700

	MAIL ADDRESS:	
		STREET 1:		108 WILD BASIN RD
		CITY:			AUSTIN
		STATE:			TX
		ZIP:			78746

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	VTEL CORP
		DATE OF NAME CHANGE:	19960401

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	VIDEO TELECOM CORP
		DATE OF NAME CHANGE:	19960401
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>forgent8k.htm
<DESCRIPTION>FORGENT NETWORKS 8-K
<TEXT>
<table cellpadding="3" border="0" cellspacing="0" width="100%">
<tr><td>
</td></tr>
</table>
<center>
<table border=0 cellpadding=3 cellspacing=0>
<tr><td align="center"><br><br>
<B>UNITED STATES</B><br>
<B>SECURITIES AND EXCHANGE COMMISSION</B><br>
Washington, D.C. 20549<p>
<hr size=1>
<p><b>FORM 8-K<p>
CURRENT REPORT
<p>
Pursuant to Section 13 or 15(d) of the<br>Securities Exchange Act of 1934.
</td>
</tr>
</table>
<p>
<b>
<table border=0 cellpadding=0 cellspacing=0>
<tr><td colspan=5 align=center>
<b>Date of Report: March     14, 2006</b><br>
(Date of earliest event reported)<br><br>
</td></tr>
<tr><td colspan=5 align=center>
<b>Forgent Networks Inc</b><br>
(Exact name of registrant as specified in its charter)
</td></tr>
<tr><td colspan=5><br></td></tr>
<tr>
<td align=center colspan=2 width="40%" valign="top">
<b>TX</b><br>
(State or other jurisdiction <br>of incorporation)
</td>
<td align=center width="20%" valign="top">
<b>0-20008</b><br>
(Commission File Number)
</td>
<td align=center colspan=2 width="40%" valign="top">
<b>74-2415696</b><br>
(IRS Employer <br>Identification Number)
</td>
</tr>
<tr><td colspan=5><br></td></tr>
<tr>
<td align="center" colspan=2>
<b>108 Wild Basin Rd</b><br>
(Address of principal executive offices)
</td>
<td>&nbsp;</td>
<td align="center" colspan=2>
<b>78746</b><br>
(Zip Code)
</td>
</tr>
<tr><td colspan=5 align=center><br>
<b>512-437-2700</b><br>(Registrant's telephone number, including area code)
</td></tr>
<tr><td colspan=5><br></td></tr>
<tr><td colspan=5 align=center>
<b>Not Applicable</b><br>(Former Name or Former Address, if changed since last report)<br>
</td></tr>
</table>
</center>
<br><br>
</b>
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:<br>
<dl>
 <dd><font face="wingdings">o</font> Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<br>
 <dd><font face="wingdings">o</font> Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<br>
 <dd><font face="wingdings">o</font> Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

  <br>
 <dd><font face="wingdings">o</font> Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

  <br>
</dl>
<hr size=1>
<table width=100%>
<tr><td width="100%">
<b>Item 2.02. Results of Operations and Financial Condition</b></b><br>
<br>
Forgent Announces the Results for the 2006 Fiscal Second Quarter
<p>
<b>Item 9.01. Financial Statements and Exhibits</b></b><br>
<br><b>(a) Financial statements:</b><br>
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;  None<br>
<b>(b) Pro forma financial information:</b><br>
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;  None<br>
<b>(c) Shell company transactions:</b><br>
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;  None<br>
<b>(d) Exhibits</b><br>
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;  99.1 &nbsp; &nbsp; &nbsp; <a href="forgentnetworksinc8.htm">Press Release of Forgent Networks Inc dated March     14, 2006</a></b>
<p>
<p>
<hr size=1>
<b><center>SIGNATURE</center></b>
<p>
&nbsp; &nbsp; &nbsp; Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be
              signed on its behalf by the undersigned hereunto duly authorized.<p>
</td></tr>
</table>
<br>
<table>
<tr>
<td width="50%" valign=top>
Dated: March     14, 2006<br>
</td>
<td>
<b>FORGENT NETWORKS INC</b>
<p>
By: <u>&nbsp;/s/ Jay Peterson &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; </u> <br>
&nbsp; &nbsp; &nbsp;Jay Peterson<br>
&nbsp; &nbsp; &nbsp;<i>Chief Financial Officer</i><br>
</td></tr>
</table>
<hr>
<center>
<table border=0 width="100%">
<tr><td colspan=2>
<center><b>Exhibit Index</b></center>
</td>
</tr>
<tr>
<td width=50% align=center><b><u>Exhibit No.</u></b></td>
<td width=50% align=center><b><u>Description</u></b></td>
</tr>
<tr>
<td align=center>99.1</td>
<td align=center>Press Release of Forgent Networks Inc dated March     14, 2006</td>
</tr>
</table>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>forgentnetworksinc8.htm
<DESCRIPTION>FORGENT NETWORKS PRESS RELEASE
<TEXT>

<p></p>
<b>Forgent Announces the Results for the 2006 Fiscal Second Quarter</b>
<p>Revenues Increase by $0.7M, Operating Expenses Decrease by $0.2M</p>
<p>AUSTIN, TX -- 03/14/2006 --  Forgent&#8482; Networks (NASDAQ: FORG) today
announced results for the 2006 fiscal second quarter ended Jan. 31, 2006.
During the quarter, the company reported total revenues of approximately
$4.4 million.  Highlights for the quarter include:
</p>
<p>
<pre>
- --  Increased total revenues to $4.4M
- --  Increased intellectual property revenues by $0.9M over the prior
    quarter to more than $3.8M
- --  Reduced operating expenses to $2.7M
- --  Reduced net loss to $0.02 EPS
- --  Maintained cash, cash equivalents and short-term investments of
    approximately $15.6M
    </pre>
</p>
<p>
"We are pleased with the '672 Patent licensing revenue and continue to see
activity and interest in this important area.  We are also seeing progress
with respect to the litigation of both the '672 and '746 Patents. The
addition of the Susman Godfrey firm to the '672 team has made a positive
contribution to the program," said Richard Snyder, chairman and CEO of
Forgent.  "We continue to license our technology, manage our operating
expenses, as well as maintain a solid cash and working capital position."
</p>
<p>
Intellectual Property
</p>
<p>
The intellectual property business generated revenues of approximately $3.8
million for the second quarter of fiscal 2006, compared to $2.9 million for
the first quarter of 2006.  This past quarter, 8 intellectual property
licenses were signed.
</p>
<p>
U.S. Patent No. 4,698,672 (the '672 Patent)
</p>
<p>
Forgent has litigation pending against approximately 30 companies for
infringement of its '672 Patent in the United States District Court for the
Northern District of California.  The '672 Patent relates to digital image
compression used in digital image devices that compress, store, manipulate,
print or transmit digital images such as digital cameras, personal digital
assistants, cellular telephones, printers, scanners, and certain software
applications.  Following the filings of the litigation, 13 companies have
entered into license or settlement agreements.
</p>
<p>
U.S. Patent No. 6,285,746 (the '746 Patent)
</p>
<p>
Forgent has pending litigation against 15 companies for infringement of its
'746 Patent in the United States District Court for the Eastern District of
Texas, Marshall Division.  The '746 Patent relates to a computer controlled
video system allowing playback during recording.
</p>
<p>
After the quarter end, Judge Leonard Davis of the United States District
Court for the Eastern District of Texas, Marshall Division set a mediation
date for April 6, 2006.
</p>
<p>
Since its inception approximately four years ago, Forgent's intellectual
property program has generated more than $108.4 million in revenues
primarily from licensing the '672 Patent to more than 60 different
companies in Asia, Europe and the United States.  The company's patent
portfolio includes the combined inventions of Compression Labs, Inc., VTEL
Corporation, and Forgent Networks, Inc.
</p>
<p>
Software
</p>
<p>
NetSimplicity software revenues declined by approximately 25% to $0.5
million for the second quarter of fiscal 2006, compared to $0.7 million for
the first quarter of fiscal 2006.  The decline was due in part to sales
force turnover and a softer than expected holiday season.  Forgent
anticipates a return to its historical growth pattern in the third quarter
of fiscal 2006.
</p>
<p>
NetSimplicity increased its customers to more than 2,000 worldwide.  The
company provides a low-cost, high-value software application to small and
medium businesses and divisions of large enterprises.  NetSimplicity sells
Meeting Room Manager and other high-value business applications, such as IT
asset management, via its a low-cost e-marketing and telesales model.
</p>
<p>
Fiscal Second Quarter Results
</p>
<p>
Revenue was $4.4 million for the fiscal second quarter compared to $3.6
million for the 2006 fiscal first quarter, reflecting the inherent
unpredictability of intellectual property licensing revenues.  Overall
operating expenses were approximately $2.7 million, down from the prior
quarter by $0.2 and the lowest level in more than a year.  The company had
a net loss of $0.5 million or $0.02 per share for the second fiscal quarter
of 2006, compared to a net loss of $1.4 million or $0.05 per share for the
first quarter of 2006.  Cash, cash equivalents and short-term investments
were approximately $15.6 million.
</p>
<p>
Outlook
</p>
<p>
Forgent expects to continue to generate licensing revenues in the 2006
fiscal year and fiscal third quarter.  However, predicting the timing and
amounts will be complicated because of the uncertainty of licensing
negotiations and due to the pending litigation.
</p>
<p>
Conference Call and Webcast
</p>
<p>
Forgent has scheduled a conference call with the investment community for
Tue, Mar. 14, 2006, at 10:00 a.m. CT (11:00 a.m. ET) to discuss the quarter
and outlook.  To take part, dial 800-591-6944 ten minutes before the
conference call begins, ask for the Forgent event, and use a pass code of
71075178.  International callers should dial 617-614-4910 and use a pass
code of 71075178.  Investors, analysts, media and the general public will
also have the opportunity to listen to the conference call over the
Internet by visiting the investor relations page of Forgent's web site at
www.forgent.com.  To listen to the live call, please visit the web site at
least 15 minutes early to register, download and install any necessary
audio software.  For those who cannot listen to the live broadcast, a
replay will be available shortly after the call on the investor relations
page of our web site at www.forgent.com.
</p>
<p>
About Forgent
</p>
<p>
Forgent&#8482; Networks (NASDAQ: FORG) develops and licenses intellectual
property and provides scheduling software to a wide variety of customers.
Forgent's intellectual property licensing program is related to
communication technologies developed from a diverse and growing patent
portfolio.  Forgent's software division, NetSimplicity provides a spectrum
of scheduling software that enables all sizes of organizations to
streamline the scheduling of people, places and things. For additional
information please visit www.forgent.com.
</p>
<p>
Safe Harbor
</p>
<p>
This release may include projections and other forward-looking statements
that involve a number of risks and uncertainties, and actual results in
future periods may differ materially from those currently expected. Some of
the factors that could cause actual results to differ materially include
changes in the general economy or in our industry, rapid changes in
technology; sales cycle and product implementations; risks associated with
transitioning to a new business model and the subsequent limited operating
history; the possibility of new entrants into our software markets, the
possibility that the market for the sale of certain software and services
may not develop as expected; or that development of these software and
services may not proceed as planned; the risks associated with the
company's license program, and including risks of litigation involving
intellectual property, patents and trademarks.  Additional discussion of
these and other risk factors affecting the company's business and prospects
is contained in the company's periodic filings with the SEC.
<pre>
                 Forgent Networks Consolidated Balance Sheets
                 (Amounts in thousands, except per share-data)

                                                   JANUARY 31,   JULY 31,
                                                       2006        2005
                                                    --------     --------
                                                   (UNAUDITED)
                           ASSETS
Current Assets:
   Cash and cash equivalents, including
    restricted cash of $650 at
    January 31, 2006 and July 31, 2005              $ 15,599     $ 15,861
   Short-term investments                                 --        1,487
   Accounts receivable, net of allowance
    for doubtful accounts of $14 and $10
    at January 31, 2006 and July 31,
    2005, respectively                                 1,039          471
   Prepaid expenses and other current assets             405          266
                                                    --------     --------
       Total Current Assets                           17,043       18,085

Property and equipment, net                            1,374        1,957
Intangible assets, net                                    17           33
Other assets                                              15           27
                                                    --------     --------
                                                    $ 18,449     $ 20,102
                                                    ========     ========
           LIABILITIES AND STOCKHOLDERS&#146; EQUITY
Current Liabilities:
   Accounts payable                                 $  2,317     $  1,856
   Accrued compensation and benefits                     375          590
   Other accrued liabilities                             954        1,209
   Notes payable, current position                       355          355
   Deferred revenue                                      588          517
                                                    --------     --------
       Total Current Liabilities                       4,589        4,527

Long-Term Liabilities:
   Deferred revenue                                       12            4
   Other long-term obligations                         2,072        2,280
                                                    --------     --------
       Total Long-Term Liabilities                     2,084        2,284

Stockholders&#146; Equity:
   Preferred stock, $.01 par value; 10,000
    authorized; none issued or outstanding                --           --
   Common stock, $.01 par value; 40,000 authorized;
    27,168 and 26,967 shares issued; 25,378 and
    25,177 shares outstanding at January 31, 2006
    and July 31, 2005, respectively                      271          269
   Treasury stock at cost, 1,790 issued at
    January 31, 2006 and July 31, 2005                (4,815)      (4,815)
   Additional paid-in capital                        265,356      265,020
   Accumulated deficit                              (249,060)    (247,199)
   Accumulated other comprehensive income                 24           16
                                                    --------     --------
       Total Stockholders&#146; Equity                     11,776       13,291
                                                    --------     --------
                                                    $ 18,449     $ 20,102
                                                    ========     ========


           Forgent Networks Consolidated Statements of Operations
                (Amounts in thousands, except per-share data)

                                             FOR THE           FOR THE
                                       THREE MONTHS ENDED  SIX MONTHS ENDED
                                           JANUARY 31,       JANUARY 31,
                                          2006     2005     2006     2005
                                        -------  -------  -------  -------
                                           (UNAUDITED)       (UNAUDITED)
REVENUES:
   Intellectual property licensing      $ 3,805  $ 1,040  $ 6,722  $ 6,963
   Software and services                    546      476    1,277      912
                                        -------  -------  -------  -------
      Total revenues                      4,351    1,516    7,999    7,875

COST OF SALES:
   Intellectual property licensing        2,080    1,553    4,167    4,481
   Software and services                    198      210      392      415
                                        -------  -------  -------  -------

      Total cost of sales                 2,278    1,763    4,559    4,896

GROSS MARGIN                              2,073     (247)   3,440    2,979

OPERATING EXPENSES:
   Selling, general and administrative    2,477    3,581    5,159    6,150
   Research and development                 170       88      301      157
   Amortization of intangible assets          6       12       17       24
                                        -------  -------  -------  -------
      Total operating expenses            2,653    3,681    5,477    6,331

LOSS FROM OPERATIONS                       (580)  (3,928)  (2,037)  (3,352)

OTHER INCOME AND (EXPENSES):
   Interest income                          134      102      232      170
   Interest expense and other               (29)     (13)     (46)     (25)
                                        -------  -------  -------  -------
      Total other income and (expenses)     105       89      186      145

LOSS FROM CONTINUING OPERATIONS, BEFORE
 INCOME TAXES                              (475)  (3,839)  (1,851)  (3,207)
   Provision for income taxes                (5)       9      (10)      (5)
                                        -------  -------  -------  -------
LOSS FROM CONTINUING OPERATIONS            (480)  (3,830)  (1,861)  (3,212)

   Loss from discontinued operations,
    net of income taxes                      --     (257)      --     (488)
   Gain on disposal, net of income taxes     --    4,318       --    4,318
                                        -------  -------  -------  -------
INCOME FROM DISCONTINUED OPERATIONS, NET
 OF INCOME TAXES                             --    4,061       --    3,830
NET (LOSS) INCOME                       $  (480) $   231  $(1,861) $   618
                                        =======  =======  =======  =======

BASIC AND DILUTED (LOSS) INCOME PER
 SHARE:
   Loss from continuing operations      $ (0.02) $ (0.15) $ (0.07) $ (0.13)
                                        =======  =======  =======  =======
   Income from discontinued operations  $  0.00  $  0.16  $  0.00  $  0.15
                                        =======  =======  =======  =======
   Net (loss) income                    $ (0.02) $  0.01  $ (0.07) $  0.02
                                        =======  =======  =======  =======
WEIGHTED AVERAGE SHARES OUTSTANDING:
   Basic                                 25,238   24,912   25,208   24,902
   Diluted                               25,238   24,912   25,208   24,902
</pre>

</p>
<pre>
Investor contact:
Jay Peterson
512.437.2476
jay_peterson@forgent.com</a>

Media contact:
Lee Higgins
512.794-8600
lee@petersgrouppr.com</a>


</pre>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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