RBAK ( $15 bounce $18.5) Beats Diminished Street Expectations
SAN JOSE, Calif. (Reuters) - Internet infrastructure provider Redback Networks Inc. (NasdaqNM:RBAK - news) on Wednesday posted a narrower-than-expected first-quarter loss and said net revenues jumped 166 percent from the prior-year period.
Redback, which sells equipment that lets telecommunications companies and Internet service providers manage the services and accounts of broadband subscribers, reported an operating loss of $18.4 million, or 13 cents per share, excluding acquisition-related, stock compensation, restructuring and inventory charges. A year ago, it posted a profit of $1.4 million, or 1 cent per share.
Redback was expected to post an operating loss of 15 cents per share, down from a profit of 4 cents that analysts had previously expected, according to market research firm Thomson Financial/First Call.
Redback warned on April 2 that it would report a first-quarter loss and lay off 12 percent of its work force, or 150 people, amid a slowdown in the U.S. economy and curtailed telecommunications spending.
Net revenues jumped to $90.9 million from $34.2 million a year ago.
Redback shares rose to $16.99 in after-hours trading on Instinet after the earnings were announced. Shares ended regular trading on Nasdaq Wednesday down 10 cents to $15.84, around 93 percent off its 52-week high of $181.
Redback's chief rival in the optical networking market, Cisco Systems Inc. (NasdaqNM:CSCO - news), is off 77 percent from its 52-week high.
Before pro-forma adjustments, Redback's net loss for the first quarter of 2001 was $400.5 million, or $2.92 per share, compared with a net loss of $85.2 million, or 96 cents, for the same period in the prior year.
``Despite the slowdown within the telecommunications industry, we have confidence in the long-term growth of the broadband marketplace. In addition, the next-generation metro optical market continues to show strong promise,'' Vivek Ragavan, president and CEO of Redback, said in a statement. ``We have taken steps to improve Redback's operational performance and feel confident that our current products, as well as those in development, will provide the company with a strong competitive advantage when the industry rebounds.'' |
