Redback Networks Announces Fourth Quarter and Full Year 2001 Operating Results
SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 16, 2002--Redback Networks Inc. (Nasdaq:RBAK - news), a leading provider of next-generation metro broadband and optical networking equipment, today announced results for the fiscal fourth quarter and full year 2001. Net revenue for the fourth quarter of 2001 was $40.2 million, compared with $37.0 million in the prior quarter. For the full fiscal year 2001 net revenue was $227.5 million compared to $278.0 million in fiscal year 2000.
The GAAP net loss for the fourth fiscal quarter was $0.67 per share compared to a loss of $21.71 in Q3 2001. For fiscal 2001 the GAAP loss was $28.78 per share compared to an $8.68 loss in fiscal 2000. The GAAP loss in fiscal Q3 2001 included a write down of goodwill aggregating $2.7 billion.
Pro-forma loss for the quarter was $0.20 per share compared to a loss of $0.28 in fiscal Q3. Pro forma results exclude certain impairment charges, restructuring charges, stock and other compensation related charges, amortization of intangibles and other items detailed within the attached tables.
Redback will discuss these quarterly results in an investor conference call today at 1:45 p.m. PT. The conference telephone number is (847) 944-7142. A replay of the conference call will be available at 5:15 p.m. PT. Replay information will be available at 320-365-3844, access code: 621356. Information on these calls can also be found on Redback's Web site, 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 (LECs) and inter-exchange carriers (IXCs). For more information, please visit redback.com
Redback is a U.S. Registered Trademark. Other trademarks, service marks, and trade names belong to their respective owners.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended. Redback Networks assumes no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. These and other risks relating to Redback Networks' business are set forth in the documents filed by Redback Networks with the Securities and Exchange Commission, specifically the most recent report on Form 10-Q, and the other reports filed from time to time with the Securities and Exchange Commission.
Redback Networks, Inc.
Pro Forma Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
2001 2000 2001 2000
--------- --------- --------- ---------
Net revenues $ 40,168 $ 114,561 $ 227,533 $ 278,010
Cost of revenues 24,053 52,387 142,672 106,485
--------- --------- --------- ---------
Pro forma gross margin 16,115 62,174 84,861 171,525
--------- --------- --------- ---------
Operating expenses:
Research and
development 23,490 28,166 106,928 86,727
Selling, general
and administrative 18,488 28,730 101,182 82,314
--------- --------- --------- ---------
Total operating
expenses 41,978 56,896 208,110 169,041
--------- --------- --------- ---------
Pro forma income
(loss) from operations (25,863) 5,278 (123,249) 2,484
Other income
(expense), net (3,900) 2,565 (2,825) 4,354
--------- --------- --------- ---------
Pro forma
net income (loss) $ (29,763) $ 7,843 $(126,074) $ 6,838
========= ========= ========= =========
Pro forma net income
(loss) per basic share $ (0.20) $ 0.06 $ (0.88) $ 0.06
========= ========= ========= =========
Pro forma net income
(loss) per diluted
share $ (0.20) $ 0.05 $ (0.88) $ 0.04
========= ========= ========= =========
Shares used in computing
pro forma basic net income
(loss) per share 148,951 132,745 143,068 116,019
========= ========= ========= =========
Shares used in computing
pro forma diluted net
income (loss) per share 148,951 165,401 143,068 153,135
======== ========= ========= =========
These unaudited pro-forma condensed consolidated statements of
operations exclude the following items required for presentation in
accordance with generally accepted accounting principles:
Three months ended Year ended
December 31, December 31,
2001 2000 2001 2000
-------- ------- ----------- ---------
Impairment of goodwill $ -- $ -- $ 2,689,857 $ --
Amortization of
intangible assets 51,940 317,004 1,000,308 949,706
In-process research
and development -- -- -- 40,400
Stock compensation expense 3,795 18,393 54,891 24,277
Excess and obsolete
inventory charge -- -- 131,024 --
Restructuring charges 24,022 -- 104,551 --
Investment impairments -- -- 11,379 --
Extraordinary gain on
bond redemption (10,359) -- (10,359) --
Executive recruitment fees
and sign on bonuses -- -- 4,283 --
Asset impairment
and adverse commitment -- -- 5,966 --
-------- -------- ----------- -----------
GAAP net loss $ 99,161 $327,554 $ 4,117,974 $ 1,007,545
======== ======== =========== ===========
Redback Networks, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
2001 2000 2001 2000
--------- --------- --------- ----------
Net revenues $ 40,168 $ 114,561 $ 227,533 $ 278,010
Cost of revenues 25,587 54,643 279,809 110,716
--------- --------- --------- ---------
Gross margin 14,581 59,918 (52,276) 167,294
---------- --------- ---------- ---------
Operating expenses:
Research and
development 23,490 28,166 107,599 86,727
Selling, general
and administrative 18,488 28,730 110,760 82,314
Impairment of goodwill -- -- 2,689,857 --
Restructuring charges 24,022 -- 104,551 --
Amortization of
intangible assets 50,406 314,748 994,195 945,475
In-process research
and development -- -- -- 40,400
Stock compensation 3,795 18,393 54,891 24,277
---------- --------- ---------- ---------
Total operating
expenses 120,201 390,037 4,061,853 1,179,193
---------- --------- ---------- ----------
Loss from operations (105,620) (330,119) (4,114,129) (1,011,899)
Other income
(expense), net (3,900) 2,565 (14,204) 4,354
----------- ---------- ----------- ----------
Net loss before
extraordinary gain (109,520) (327,554) (4,128,333) (1,007,545)
Extraordinary gain 10,359 -- 10,359 --
---------- --------- ---------- ----------
Net loss $ (99,161) $(327,554) $(4,117,974) $(1,007,545)
========== ========== =========== ==========
Basic and diluted net loss
before extraordinary
gain per share $ (0.74) $ (2.47) $ (28.85) $ (8.68)
========== ========== =========== ===========
Extraordinary gain
per share $ 0.07 $ -- $ 0.07 $ --
========== ========= =========== ===========
Basic and diluted
net loss per share $ (0.67) $ (2.47) $ (28.78) $ (8.68)
========== ========== =========== ===========
Shares used in
computing basic and
diluted net loss
per share 148,951 132,745 143,068 116,019
========= ========= ========== ===========
Redback Networks, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(unaudited)
December 31, December 31,
2001 2000
------------ -------------
Assets
Assets:
Cash, cash equivalents
and investments (1) $ 178,820 $ 433,669
Accounts receivable, net 34,924 96,377
Inventories, net 67,954 17,207
Property and equipment, net 93,456 73,677
Goodwill and other intangibles 447,897 4,091,152
Other assets 43,296 58,442
----------- ------------
Total assets $ 866,347 $ 4,770,524
=========== ============
Liabilities and Stockholders' Equity
Liabilities:
Accounts payable
and accrued liabilities $ 143,477 $ 101,500
Deferred revenue 9,539 11,080
Other non current liabilities 82,918 2,636
Convertible notes and
other borrowings 492,876 506,161
Stockholders' equity 137,537 4,149,147
----------- ------------
Total liabilities and
stockholders' equity $ 866,347 $ 4,770,524
=========== ============
(1) Cash, cash equivalents, and investments at December 31, 2001
include restricted amounts totaling $44 million associated with a line
of credit and commercial letters of credit.
--------------------------------------------------------------------------------
Contact:
Redback Networks
Dennis P. Wolf, 408/750-5155 (Financial)
dwolf@redback.com
or
Anne Smith, 408/750-5044 (Media)
asmith@redback.com
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