RBAK ( sell $9.50) Expects Lower Second Quarter 2001 Results
SAN JOSE, Calif., Jun 27, 2001 (BUSINESS WIRE) -- Citing a continuing weak
global telecommunications market, Redback Networks Inc. (NASDAQ: RBAK) today
announced that it expects revenue in the current fiscal quarter ending June 30,
2001 will be approximately $55 to $60 million. These projections are preliminary
and subject to change as final orders are processed through the end of the
quarter.
The Company expects to take a charge for excess and obsolete inventory and
purchase commitments for the second quarter. Excluding acquisition-related
charges, stock compensation charges, restructuring charges, the expected
inventory charges, and asset impairment and other non-recurring charges, the
company expects a pro forma loss of approximately $0.27 to $0.32 per share.
"We are in the midst of an unprecedented downturn in the telecommunications
marketplace. Delayed network deployments by the largest carriers and service
providers reduced overall order visibility." said Dennis P. Wolf, chief
financial officer at Redback. "Coupled with the back end loading of our
quarterly sales, it was extremely difficult to predict the resulting quarterly
revenue shortfall. The lower than expected sales and a reduced outlook create an
imbalance in inventory levels, requiring the inventory charge this quarter."
"While the marketplace continues to be very uncertain, our product plans remain
solid and on track. We believe that our products are well positioned for when
the industry recovers," said Wolf.
Redback will discuss its expected second fiscal quarter lowered expectations in
an investor conference call today at 2:00pm PST. The conference telephone number
is (719) 457-2654. Replay information will be available at (719) 457-0820,
access code: 798485. Redback's fiscal second quarter 2001 earnings conference is
scheduled for July 11th at 2:00 pm PST. The Company will review the quarter, as
well as the full year outlook, at that time. Information on these calls can also
be found on Redback's website, www.redback.com, under Investor Center.
About Redback Networks Inc.
Redback Networks enables carriers and service providers to build profitable
next-generation metro broadband and optical networks. The Company offers a
strong product portfolio that includes industry-leading subscriber management
and optical platforms, as well as a comprehensive set of network provisioning
and management software. These solutions deliver superior performance and
scalability, reduce operational costs, and expedite the management and
deployment of new services within metro networks.
Founded in 1996 and headquartered in San Jose, Calif., with sales and technical
support centers located worldwide, Redback Networks maintains a growing and
global customer base of more than 350 carriers and service providers, including
major local exchange carriers (LEC), inter-exchange carriers (IXCs) and service
providers. For more information, please visit www.redback.com
Note to Editors: Redback is a U.S. Registered Trademark; 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 |
