RSTN ( $7.50 ~ $8.65) EPS -$0.65 RReports Record Revenue, Delivers 169 Percent Year Over Year
Growth, and Reaches Profitability Ahead of Expectations
Business Editors
SANTA CLARA, Calif.--(BUSINESS WIRE)--Sept. 20, 2001--
Revenues Grow to $55.3 Million; Company Reports
Pro Forma Profit of $0.01 Per Share
Riverstone Networks Inc., (Nasdaq:RSTN) today reported revenues of
$55.3 million for its second quarter fiscal 2002, which ended
September 1, 2001, a 169 percent increase compared with revenues of
$20.6 million for the same period last year and a 25 percent increase
compared with revenues of $44.2 million for the prior quarter.
Pro forma net income for the quarter was $1.6 million or $0.01 per
share, compared with a pro forma net loss of $8.4 million or $0.09 per
share for the second quarter of fiscal 2001, and a pro forma net loss
of $3.6 million or $0.03 per share for the prior quarter.
Actual net income for the second quarter, which includes
stock-based compensation and amortization of goodwill, was $64,000 or
breakeven on a per share basis. This compares with a net loss of $11.8
million or $0.13 per share for the second quarter of fiscal 2001.
"We are very pleased with our financial results," said Romulus
Pereira, president and chief executive officer of Riverstone Networks.
"Not only did we turn profitable a full quarter ahead of expectations,
we grew revenue 169 percent on a year over year basis. We continue to
win tier-one accounts around the world by delivering key technology
offerings such as MPLS services, new high-density gigabit platforms
and high-availability networking solutions. These achievements are
establishing us as a premier provider of metropolitan area network
equipment."
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*T
Second Quarter Highlights
-- Riverstone chosen for significant metro projects. During the
second quarter, Korea Telecom, Korea's largest carrier, selected
Riverstone for its Ntopia project, a project designed to bring
next-generation Ethernet services to more than 300,000 residences
in Korea's large-scale apartment complexes. Hutchison Global
Crossing, Hong Kong's second largest telecommunications provider,
chose Riverstone to deploy the world's first metro Multi-Protocol
Label Switching (MPLS) Ethernet network in Hong Kong.
Additionally, Chunghwa Telecom, Taiwan's largest carrier, will
deploy Riverstone routers as part of the foundation for its
development of high-value services in its next-generation research
network.
-- Riverstone continues its lead in technological innovation. During
the second quarter Riverstone shipped more than 1,000 MPLS ports
to its carrier customers. Riverstone remains the only vendor
currently shipping Martini code, crucial for the creation and
delivery of profitable services such as virtual private lines
(VPL) and transparent LAN services.
-- RS 16000 receives tremendous initial reception from customers.
Riverstone's newest product, the RS 16000, a high-density gigabit
Ethernet metro aggregation router, began shipping to Riverstone's
carrier customers during the second quarter. The RS 16000 packs
high density and intelligence into a compact form factor that
delivers 60-wirespeed gigabit MPLS ports, WDM and wirespeed
10-gigabit uplinks, in 5 rack units.
-- Riverstone completes spin-off from Cabletron Systems, Inc.
Riverstone completed its spin-off from Cabletron Systems, Inc., on
August 6, 2001, officially making Riverstone Networks an
independent company.
*T
Conference Call Scheduled for September 20
Riverstone Networks will hold a conference call to discuss its
second quarter results and its business outlook at 5:00 p.m. EDT on
September 20, 2001. Investors can listen to the conference call on the
Internet at ir.riverstonenet.com. To listen to the live call,
go to the Web site at least fifteen minutes prior to the start time to
download and install necessary audio software. For those unable to
listen to the live broadcast, 3-day replay will be available one hour
after the conclusion of the call at ir.riverstonenet.com and at
(858) 812-6440, passcode 19622173.
About Riverstone Networks
Riverstone Networks, Inc., (Nasdaq:RSTN) builds routers that
convert raw bandwidth into profitable services for Metropolitan Area
Networks. Riverstone's products enable the creation of profitable
services and the delivery of these services over next-generation and
legacy networks, including SONET/SDH, Gigabit Ethernet, T1/E1, T3/E3,
ATM, and Dense Wavelength Division Multiplexing (DWDM). Riverstone
products bring together fourth-generation Application Specific
Integrated Circuits (ASICs), battle-tested routing software, and
unparalleled media versatility to deliver comprehensive solutions for
Metropolitan Area Networks. Riverstone's products are deployed in more
than 40 countries and in some of the world's largest networks,
including British Telecom, Korea Telecom, Qwest Communications, MAE
West Ames, EarthLink, NTT, and Telefonica. For more information,
please visit the company's Web site at www.riverstonenet.com.
Cautionary Note Regarding Forward-looking Statements
Except for the historical information contained herein, the
matters set forth in this press release, including statements as to
our ability to establish Riverstone as a premier provider of
metropolitan area network equipment are forward-looking statements
within the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements speak only as of the date hereof and are subject to risks
and uncertainties that may cause actual results to differ materially.
These risks and uncertainties include risks associated with the market
for network equipment; risks associated with rapid technological
change; lack of acceptance of products; introduction of new products
by competitors; declines in the average selling price of Riverstone
Networks' products; and adverse economic conditions in any of the
major countries in which Riverstone Networks does business. Further
information on potential risk factors that could affect the financial
results of Riverstone Networks are included in its annual report on
Form 10-K dated March 3, 2001, filed with the Securities and Exchange
Commission. Riverstone Networks disclaims any intent or obligation to
update or revise these forward-looking statements. |
