RSTN ( $19 unchng) says demand strong during Q1
SAN FRANCISCO, June 20 (Reuters) - Riverstone Networks Inc. (NasdaqNM:RSTN - news), which makes routers for metropolitan areas, on Wednesday reported a narrower loss for its fiscal first quarter and said demand for its products remained strong despite the more general slowdown in communications spending.
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The company reported a pro forma net loss, excluding stock- based compensation and amortization, in the quarter ended June 2 of $3.6 million, or 3 cents per share, compared with a loss of $11.7 million, or 13 cents per share, a year earlier. In the prior quarter, Santa Clara, Calif.-based Riverstone's pro forma loss had been $5.5 million, or 6 cents per share.
On a net basis including charges, Riverstone's loss in the first quarter was $4.7 million, or 4 cents per share, compared with a loss of $12.5 million, or 14 cents per share, a year earlier.
Revenues for the most recent quarter were $44.2 million, up from $15.8 million for the same period a year earlier and from $35.1 million for the previous quarter.
Analysts on average had expected a first-quarter loss of 5 cents per share, with a range of forecasts between 4 cents and 5 cents, according to Thomson Financial/First Call.
Riverstone went public in February after spinning off from Cabletron Systems Inc (NYSE:CS - news) and year-earlier results were adjusted and audited as though Riverstone had been a separate public company at that time, the company said.
Riverstone raised $120 million in its Feb. 6 initial public offering, when its stock listed at $12 a share. Riverstone dropped to a low of $7.75 in early April, but has rallied since, reaching a high of $24.10 in late May.
Although the downturn in the U.S. economy has forced cutbacks in information technology spending, some analysts have been more optimistic on Riverstone's prospects, on the view that growth will remain stronger in the last mile of networks, from the local provider to the home or office -- an area that is still underdeveloped compared to the long-haul backbone of the telecommunications market.
Riverstone shares closed Wednesday before the earnings announcement at $19.03, up $1.85, or 10.8 percent on the Nasdaq exchange. |
