CHELMSFORD, Mass.--(BUSINESS WIRE)--April 5, 2001--Sycamore
Networks, Inc. (NASDAQ:SCMR) announced today that revenue and earnings
for the fiscal third quarter ending April 28, 2001, will be lower than
previously projected primarily due to lower than expected customer
orders.
Sycamore anticipates that fiscal third-quarter revenue will be in
the range of $50 million to $60 million. The Company expects to report
a pro forma net loss for the fiscal third quarter, which excludes
amortization of deferred stock compensation, payroll taxes on stock
option exercises and restructuring charges, in the range of $38
million, or $(0.16) per share, to $45 million, or $(0.19) per share.
In addition, due to the uncertainty as to current economic conditions
and its impact on capital spending, Sycamore will not be providing
guidance for future periods until its third-quarter financial results
are released on May 15, 2001.
In the third quarter of fiscal 2000, Sycamore reported pro forma
net income of $11.7 million, or $0.05 per share, on revenue of $59.2
million.
Based on its revised guidance, the Company plans to restructure
its operations and lower its overall cost structure. As part of these
initiatives, Sycamore anticipates recording a non-recurring
restructuring charge in the range of $140 million to $150 million
associated with the consolidation of the Company's two transport
business units into a single entity, delay of facility expansion,
inventory and fixed asset write-downs, and the reduction of
approximately 140 employees at Sycamore.
"Due to market conditions, it is necessary that the company reduce
a portion of its operating expenses," stated Dan Smith, Sycamore's
president and chief executive officer. "We are taking the necessary
steps to improve our operating performance by focusing on key projects
for our customers while taking a prudent approach to managing our cost
structure. We believe that this approach will allow us to immediately
capitalize on new opportunities as market conditions improve."
Conference Call and Webcast
Sycamore plans to review the items contained in this press release
during a conference call today beginning at 5:00 p.m. EDT. To
participate telephonically, please dial (888)-849-9216 (domestically)
or (212) 346-7451 (internationally) at least 15 minutes prior to the
start of the call. The call also will be broadcast live over the
Internet. To listen to the Webcast, visit the investor relations
section of Sycamore's Web site, located at www.sycamorenet.com.
Interested investors are encouraged to log onto the Webcast at least
15 minutes prior to call. Participating in the call will be Sycamore's
president and chief executive officer Daniel E. Smith and chief
financial officer Frances M. Jewels. A rebroadcast of the call will be
available through audio archiving on Sycamore's Web site. In addition,
a telephone replay will be available for 48 hours, beginning at 8:00
p.m. EDT on April 5, 2001, and continuing until 8:00 p.m. EDT on April
7, 2001. To listen to the telephonic replay, dial (800) 633-8284
(domestically) or (858) 812-6440 (internationally), and designate
reservation number 18528223.
About Sycamore Networks
Sycamore Networks (NASDAQ:SCMR) develops and markets intelligent
optical networking products that transport voice and data traffic over
wavelengths of light. The Company combines significant experience in
data networking with expertise in optics to develop intelligent
optical networking solutions for network service providers. Sycamore's
products are based on a common software foundation, enabling
concentration on the delivery of services and end-to-end optical
networking. Sycamore's products and product plans include optical
transport, access and switching systems and end-to-end optical network
management solutions. Contact Sycamore Networks at
www.sycamorenet.com. |
