Company Reports 11% Sequential Proforma Revenue Growth Wide Acceptance of New IPSG Blade Technology
REDWOOD CITY, Calif., Jan. 30 /PRNewswire-FirstCall/ -- CoSine Communications, Inc. (Nasdaq: COSN - news), a leading provider of managed, network-based IP service delivery platforms, today announced proforma revenue (revenue before deduction of amortized receipts for equity issued in connection with sales) for the quarter ended December 31, 2001 of $11.5 million, and a proforma net loss (excluding non-cash equity-related items) of $18.9 million or $0.19 per share. Fourth quarter proforma revenue represents an increase of 11% over the third quarter 2001 proforma revenue of $10.3 million.
For the year ended December 31, 2001, proforma revenue was $37.3 million, and the proforma net loss (excluding non-cash equity-related items and restructuring charges) was $102.1 million or $1.05 per share.
On a GAAP basis (including non-cash equity related items) revenue for the quarter ended December 31, 2001, was $11.3 million and the net loss for the quarter was $23.4 million or $0.24 per share. For the year ended December 31, 2001, revenue was $34.3 million, including non-cash equity-related items. The net loss for the year, including non-cash equity-related adjustments and previously reported restructuring charges, was $146.3 million or $1.51 per share.
The company also stated that it has completed the cost cutting initiatives announced in October 2001. As anticipated, the benefit of these savings will be fully realized in the first quarter of 2002. CoSine ended 2001 with $164.9 million of cash and short-term investments.
``Our fourth quarter results are particularly notable as they include the initial sales of our new IP Service Generator (IPSG) blades, which started shipping in mid-November,'' said Dean Hamilton, chairman and CEO. ``This technology, which provides the speed and scalability required by the largest service providers to offer a comprehensive IP services package, was developed in direct consultation with these carriers. It not only meets the strict criteria of Tier 1 carriers, but also extends the technological leadership of CoSine in this market.''
Mr. Hamilton continued, ``Despite the continued weakness in telecommunications spending, in the fourth quarter we delivered sequential proforma revenue growth of 11% and recognized revenue from seven new customers, including two unannounced North America Tier 1 carriers and two unannounced international Tier 1 carriers. We also received expansion orders from four previously announced major carriers: Cable & Wireless, Nissho, Verio and NEC for delivery to NTT. We believe these achievements demonstrate that service providers recognize that CoSine provides an opportunity for them to significantly reduce operating costs, optimize capital expenditures and establish incremental and growing revenue streams from IP Services offerings in a difficult economic environment. Despite cautiousness concerning the weakness in capital spending by service providers, we continue to remain optimistic regarding the opportunity for CoSine in 2002,'' he concluded.
About CoSine Communications Inc.
Founded in 1998 and based in Redwood City, Calif., CoSine is the leading provider of a new class of infrastructure equipment for service providers, allowing them to offer value-added, secure Internet and data services that increase market share, reduce churn and grow profitability in a fiercely competitive market. For more information about CoSine Communications, visit the company's Web site at www.cosinecom.com.
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