For the record:
Thursday April 26, 4:10 pm Eastern Time
Press Release
Corvis Corporation Reports Revenues of $84.1 Million for the First Quarter
Broadwing's Turn Up of First Commercial All-Optical Network and Williams Field Trial Drive Revenues
COLUMBIA, Md.--(BUSINESS WIRE)--April 26, 2001--Corvis Corporation (NASDAQ:CORV - news), the only company delivering intelligent all-optical networking solutions, today reported revenues of $84.1 million for its fiscal first quarter ended March 31, 2001. This represents an increase of 82.8% compared with revenues of $46.0 million for the previous fiscal quarter ended December 30, 2000.
Revenues for the first quarter were generated by continued commercial deployment of both transport and switching products, under the company's two-year contract with Broadwing Communications, Inc. and the completion of a successful field trial deployment with Williams Communications.
``Corvis kicked off the year with a strong first quarter financial performance through the successful delivery of Corvis networking solutions,'' said Dr. David Huber, Chairman and Chief Executive Officer. ``We continue to see growth opportunities across our full suite of intelligent optical networking products, and are looking forward to continuing to execute for our customers in the year ahead.''
Pro forma net loss for the current quarter was $23.0 million, or $0.07 loss per share, excluding goodwill and other intangible assets amortization expense and equity-based expense. Reported net loss was $100.8 million, or $0.29 loss per share, for the current quarter as compared with a reported net loss of $26.8 million, or $0.65 loss per share for the first quarter of 2000.
Quarterly Highlights
Broadwing Communications turned up its intelligent, all-optical switched network, the first in the communications world. By using the CorWave ON suite of products, the Broadwing network will operate at higher levels of capacity and efficiency as compared to `legacy' networks.
Williams Communications successfully completed field trial deployment of Corvis' all-optical networking products. During the field trial, Williams achieved a record-breaking 6,400 km transmission without electrical regeneration along a portion of the Williams Multi-Service Broadband Network®.
Corvis introduced several new next-generation products during the quarter:
The CorWave LR, an ultra-high capacity dense wavelength division multiplexing (DWDM) transmission system, with up to 3.2 terabits per second capacity.
The CorWave XL and CorWave XF products with ultra-high capacity for terrestrial (XL) and festoon (XF) systems, increasing network capacity and reliability across repeaterless network links.
Recent Events
Also announced earlier today, Qwest Communications will build a nationwide all-optical express network using Corvis' integrated suite of next-generation products and services. In addition, Corvis and Qwest have also agreed to continue development of OC-768 next-generation transmission technologies.
Webcast Information
In conjunction with this announcement, Corvis will host a conference call of its first quarter financial results today at 5:30 pm EST. The live broadcast of the conference will be available via Corvis' website, www.corvis.com. An archived audio of the conference call will also be available for replay purposes through the Corvis website.
About Corvis
Corvis Corporation is a provider of all-optical networks founded by Dr. David Huber, a pioneer in the field of optical communications. The company is revolutionizing the way communications traffic is moved in the new Internet-driven economy by deploying the industry's first all-optical network providing integrated all-optical switching, ultra-long distance transport and network management. Corvis products and services deliver all-optical network intelligence and mesh network capability. This allows communication service providers to realize a significant gain in network capacity using existing fiber in the field and improve their competitiveness by delivering new and existing services and applications more rapidly, while significantly reducing the overall capital and operational cost of building and maintaining their network. For more information, call Corvis at 443-259-4000 or visit the Corvis web site at www.corvis.com. Corvis, CorWave and the Corvis logo are trademarks and/or service marks of the Corvis Corporation.
Investor Note Regarding Forward Looking Statements
This announcement contains certain forward-looking statements that are subject to risks and uncertainties. Actual results could differ materially from those currently anticipated as a result of a number of factors, including, but not limited to, the risks and uncertainties discussed under ``Risk Factors'' and ``Management's Discussion and Analysis of Financial Condition and Results of Operations'' in the company's filings with the Securities and Exchange Commission.
CORVIS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
Quarter Ended
March 31, 2001 April 1, 2000
(Unaudited) (Unaudited)
Revenues $ 84,086 $ --
Cost of sales 52,903 --
--------- ---------
Gross profit 31,183 --
Operating expenses:
Research and development 40,975 20,121
Sales and marketing 15,412 4,637
General and administrative 10,979 2,677
Goodwill and other intangible
assets amortization expense 52,245 91
Equity-based expense 25,633 745
--------- ---------
Operating loss (114,061) (28,271)
Interest and other income, net 13,232 1,440
--------- ---------
Net loss $(100,829) $ (26,831)
========= =========
Weighted average number of common shares
outstanding (in thousands) (a) 342,359 41,128
Basic and diluted net loss per common
share $ (0.29) $ (0.65)
========= =========
Pro forma net loss (b) $ (22,951)
=========
Pro forma net loss per common share (b) $ (0.07)
=========
(a) The weighted average shares for the current periods have been
adjusted to account for the 3-for-1 split of common stock on
February 8, 2000 and a 4-for-1 split of common stock on July 21,
2000. The conversion of all preferred shares outstanding to common
stock that occurred on July 28, 2000 is not retroactively adjusted
to determine the weighted averages for the periods presented.
(b) For the quarter ended March 31, 2001, pro forma results exclude
goodwill and other intangible assets amortization expense and
equity-based expense.
CORVIS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
March 31, December 30,
2001 2000
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 877,810 $1,024,758
Trade accounts receivable 63,741 16,085
Inventory, net 231,191 219,414
Other current assets 33,265 26,802
---------- ----------
Total current assets 1,206,007 1,287,059
Restricted cash, non-current 46,292 46,292
Property and equipment, net 162,544 106,681
Goodwill and intangible assets, net 822,882 929,204
Other non-current assets 29,440 12,600
---------- ----------
Total assets $2,267,165 $2,381,836
========== ==========
Liabilities, redeemable stock
and stockholders' equity
Total current liabilities $ 127,817 $ 115,019
Total liabilities 178,734 165,243
Total redeemable stock 30,000 30,000
Total stockholders' equity 2,058,431 2,186,593
---------- ----------
Total liabilities, redeemable stock
and stockholders' equity $2,267,165 $2,381,836
========== ==========
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Contact:
Corvis Corporation
Investor Relations:
Andrew G. Backman, 443/259-4600
Fax: 301/310-3134
investorinformation@corvis.com
Or
Public Relations:
Keira Shein, 443/259-4006
Fax: 443/259-4798
kshein@corvis.com |
