REDBACK sees quarterly loss despite sales surge
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Redback Networks Inc. Announces Record First Quarter Revenue and Earnings
Q1 2000 Net Revenues of $34.2 Million Provide 424 Percent Growth Over Q1 1999; Q1 Pro Forma Diluted Net Income Per Share of $0.05 On a Post-Split Basis
SUNNYVALE, Calif.--(BUSINESS WIRE)--April 12, 2000-- Redback Networks Inc., (NASDAQ: RBAK - news), a leading provider of advanced networking solutions, today reported record results for the quarter ended March 31, 2000.
Net revenues for the first quarter of 2000 were $34.2 million, compared with $6.5 million for the same period in the prior year, an increase of 424 percent. Pro forma diluted net income for the first quarter of 2000 was $5.6 million or $0.05 per share after giving effect to the Company's two-for-one stock split effective April 3, 2000, and excluding acquisition-related and stock compensation charges and the research and development expense related to Siara Systems' operations. This compares to the first quarter of 1999 pro forma net loss of $2.7 million or $(0.16) per share on a post-split basis. Before pro forma adjustments, net loss for the first quarter of 2000 was $85.2 million or $(0.96) per share on a post-split basis compared to a net loss of $3.8 million or $(0.23) per share on a post-split basis for the same period in the prior year.
``The first quarter of 2000 was a period of expansion for Redback in the subscriber management market,' said Dennis Barsema, chief executive officer at Redback. ``Redback continued its momentum in the North American market with both incumbent local exchange carriers (ILECs) and competitive local exchange carriers (CLECs), and announced significant new CLEC wins, including Covad Communications and the newly launched Maverix.net. Additionally, we announced the growth in our Asia-Pacific sales and support operation, along with a number of new carrier and service provider customers in both Asia-Pacific and Europe,' stated Barsema. In the first quarter, Redback expanded its Asia-Pacific operations to include offices in Australia, Hong Kong, Japan, Singapore and Thailand, and grew its Asian and European customer base to include Taiwan's national carrier Chunghwa Telecom, China's largest network operator, Guangdong Telecom, and Estonia's national carrier Estonia Telecom.
``In addition to expanding our presence in the subscriber management market, we executed on a major milestone by announcing the SMS 10000, the third platform in our subscriber management product line,' said Vivek Ragavan, president and chief operating officer at Redback. ``In the metropolitan optical networking market, Redback took a major step forward by completing its merger with Siara Systems on March 8. The merger gives Redback a strong advantage in terms of developing products and technologies for the New Access Network, including core competencies in IP development, SONET and optical networking, and ASIC design.' Redback Networks now has about 600 employees, 330 of which are software and hardware development engineers.
Redback also completed a private placement of convertible subordinated notes in the first quarter raising net proceeds of approximately $486.5 million.
About Redback Networks, Inc.
Founded in 1996 and headquartered in Sunnyvale, Calif., Redback Networks, Inc., is a leading provider of advanced networking solutions that enable carriers, cable operators, and service providers to rapidly deploy broadband access and services. The company's market-leading Subscriber Management Systems(TM) (SMSs) connect and manage large numbers of subscribers using any of the major broadband access technologies such as Digital Subscriber Line (DSL), cable, and wireless. To deliver integrated transport solutions for metropolitan optical networks, Redback's SmartEdge(TM) multi-service platforms leverage powerful advances in application-specific integrated circuit (ASIC), IP, and optical technology. With this product portfolio, Redback Networks is the first equipment supplier focused exclusively on developing integrated solutions for the New Access Network.
Note to Editors: Redback, Subscriber Management System and SmartEdge are trademarks of Redback Networks, Inc. Other trademarks, service marks, and trade names belong to their respective owners.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, including statements regarding Redback Networks' expectations, beliefs, intentions or strategies regarding the future. Forward-looking statements include statements regarding the benefits to be derived from the merger of the two companies and the integration of their technologies and product offerings, future sales to customers, and the migration of service providers and carriers from traditional access offerings to next-generation IP-based services. All forward-looking statements included in this document are based upon information available to Redback Networks as of the date hereof, and Redback Networks assumes no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. These and other risks relating to Redback Networks' business are set forth in the documents filed by Redback Networks with the Securities and Exchange Commission, specifically the most recent report on Form 10-K, and the other reports filed from time to time with the Securities and Exchange Commission. |
