Tellium Reports Second Quarter 2001 Results
Revenues of $30.4 Million Reflect 95 Percent Growth Over Preceding Quarter
OCEANPORT, N.J.--(BUSINESS WIRE)--July 18, 2001--
Second Quarter Highlights
Revenues of $30.4 million - up 95 percent sequentially.
Gross margins before non-cash charges increase to $12.8 million,
or 42 percent of revenues.
Initial public offering of common stock, raising net proceeds of $139.8 million.
Qwest agrees to expand multi-year strategic relationship with Tellium.
Tellium and NEC enter into joint marketing and development agreements.
First deliveries of Aurora 128(TM); preview of Aurora Full Spectrum(TM) all-optical switch.
Successful demonstration of interoperability with products from other industry leaders.
Tellium, Inc. (Nasdaq: TELM - news), provider of the world's first in-service intelligent core optical switch, today reported its results for the second quarter of 2001, its first quarterly results as a public company. Revenues were $30.4 million during the quarter, an increase of 95 percent over Tellium's first quarter 2001 revenues of $15.6 million. On a pro forma cash basis (before non-cash charges related to equity issuances, stock-based compensation expense, depreciation, and amortization), gross margins rose to $12.8 million in the second quarter of 2001, or 42 percent of revenues, increasing from $6.3 million, or 40 percent of revenues, in the first quarter of 2001.
Operating losses on a pro forma cash basis were $15.3 million during the second quarter, compared with $22.5 million during the first quarter of 2001. Including non-cash charges, operating losses were $53.8 million during the second quarter, versus $52.5 million during the first quarter.
Tellium's net loss on a pro forma cash basis during the second quarter of 2001 was $13.0 million, versus $19.8 million during the first quarter. Including non-cash charges, the company's net loss for the second quarter was $51.5 million, versus a net loss of $49.8 million in the preceding quarter. On a per-share basis, Tellium's net loss on a pro forma cash basis during the second quarter was $0.09 and including non-cash charges, was $0.37.
``We are extremely pleased with our performance this past quarter,'' said Harry J. Carr, chairman of the board and chief executive officer of Tellium. ``After three quarters as the only company shipping a 1.28 Terabit optical switch, Tellium is firmly established as a leader in providing intelligent solutions for core optical networks. We are now beginning to see this leadership reflected in our top-line and bottom line results.
``The Tellium team completed a number of significant achievements during the quarter,'' Carr said. ``We announced and shipped a new product, the Aurora 128; we established a key relationship with a new partner, NEC; and we had one of our existing customers, Qwest, expand their multi-year strategic relationship with us. In addition, we successfully completed our initial public offering, despite the challenging market environment. This important milestone signified Tellium's transformation from a small group of engineers with a great idea to a real company shipping real products to real customers. This improving track record of performance demonstrates Tellium's strong commitment to success.
``Tellium is about focus and execution in all aspects of our business. I'm proud to say that as a team, Tellium delivered this quarter in all aspects of our business, resulting in revenues, gross margins, operating margins and net income that outperformed expectations. We will continue to maintain this discipline as we focus on building long-term shareholder value. Toward that end, we now estimate that 2001 revenues will increase to be in the range of $125-$135 million, which is higher than published analyst estimates. We are also affirming the current published revenue estimates for 2002 of approximately $288 million.''
Live Webcast Discussing Second Quarter Results
Tellium management will discuss the company's second quarter 2001 results with investors and analysts on Wednesday, July 18, 2001, at 5:00 p.m. Eastern U.S. time. A live audio webcast of this discussion will be available via Tellium's home page at www.tellium.com. A replay of the webcast will be available for approximately two weeks on the Investor Relations page of Tellium's web site at investor.tellium.com.
About Tellium
Tellium delivers high-speed, high-capacity, intelligent core optical solutions, that empower service providers around the world to create, run, control and optimize their networks. First in the world to provide in-service, intelligent optical switches, Tellium's Aurora Optical Switch(TM) family and the StarNet Software Suite(TM) together offer service providers a simple and cost-effective migration path to next-generation public networks. |
