Wednesday July 24, 6:27 pm Eastern Time
Press Release
SOURCE: Avici Systems
Avici Systems Announces Second Quarter Results
NORTH BILLERICA, Mass.--(BUSINESS WIRE)--July 24, 2002--Avici Systems Inc. (NASDAQ: AVCI - News), the specialist in reliable and scalable routing solutions for the Internet, today reported its second quarter results for the period ended June 30, 2002.
Gross revenue for the second quarter ended 2002 was $9.3 million compared with $9.2 million in the previous quarter and $21.4 million in the prior year's second quarter ended June 30, 2001, a 56.5% decline. Revenue, net of common stock warrant discount for those periods was $8.5 million, $8.4 million and $20.6 million, respectively.
Pro forma net loss and pro forma net loss per share was $15.1 million or $0.30 per share for the quarter ended June 30, 2002, compared to $11.5 million or $0.23 per share in the prior year's second quarter ended June 30, 2001.
Actual net loss and actual net loss per share which includes non-cash charges related to equity issuances, and in the second quarter of 2002, credits resulting from the utilization of inventory previously considered to be in excess, and a gain on the settlement of an insurance claim was $15.5 million or $0.31 per share for the quarter ended June 30, 2002 compared to $15.9 million or $0.32 per share, in the 2001 comparable period.
Gross revenue for the six months ended June 30, 2002 was $18.6 million compared with $37.1 million for the same period last year. Revenue, net of common stock warrant discount for those periods was $16.9 million, and $35.5 million, respectively. Pro forma net loss and pro forma net loss per share for the first six months of 2002 was $30.6 million or $0.62 per share compared to $23.3 million or $0.48 per share for the same six month period in 2001. Actual net loss and actual net loss per share for the six months ended June 30, 2002 was $34.0 million or $0.68 per share compared to $33.1 million or $0.68 per share for the same six month period in 2001.
Cash, marketable securities and long-term investments totaled $138.5 million at June 30, 2002.
"During this turbulent time in the telecommunications industry, Avici continues to execute on product innovation for our customers", said Steve Kaufman, President and CEO. "This quarter we introduced new NSR (non-stop routing) technology to help carriers improve the profitability of their IP networks."
About Avici Systems
Avici Systems Inc., headquartered in North Billerica, Mass., is a leading provider of purpose-built carrier-class routing solutions for the Internet. Avici's family of routers is designed to meet carrier requirements for the highest scalability, reliability and network availability, while lowering the total cost of building and operating their networks. The company's routing systems provide new IP solutions to some of the world's leading service providers. For more information, please visit us at www.avici.com.
Avici, TSR and SSR are trademarks of Avici Systems Inc.
This release contains information about Avici's future expectations, plans, and prospects that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. When used in this press release, the word "will", "expected" and other similar expressions are intended to identify such forward looking statements. Such risks and uncertainties include, but are not limited to, market acceptance of Avici products, services and enhancements, customer purchasing patterns and commitments, development of the market place, product development and enhancement, intensity of competition of other vendors, technological changes and other risks set forth in Avici's filings with the Securities and Exchange Commission. -O-
AVICI SYSTEMS INC.
PROFORMA CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
(unaudited)
Note 1
Three Months Ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
Gross revenue $9,344 $21,414 $18,571 $37,125
Cost of revenue 5,494 11,772 11,395 20,749
Gross margin 3,850 9,642 7,176 16,376
Operating expenses:
Research and
development 14,178 15,862 28,591 30,970
Sales and marketing 3,811 5,279 7,507 10,326
General and
administrative 1,968 2,514 3,848 4,822
Total operating
expenses 19,957 23,655 39,946 46,118
Pro forma loss from
operations (16,107) (14,013) (32,770) (29,742)
Interest income, net 1,038 2,551 2,139 6,452
Pro forma net loss $(15,069) $(11,462) $(30,631) $(23,290)
Pro forma basic and
diluted net loss
per share $(0.30) $ (0.23) $ (0.62) $ (0.48)
Weighted average common
shares used in computing
pro forma net loss
per share:
49,820,329 49,207,321 49,788,030 48,962,680
Note 1 - The above pro forma consolidated statements of operations
for the three and six month periods ended June 30, 2002 and June 30,
2001, are not presented in accordance with generally accepted
accounting principles as they exclude charges for equity issuances,
credits related to the utilization of inventory previously estimated
to be in excess of foreseeable requirements, and a gain from the
settlement of an insurance claim as follows (in thousands):
Three months ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
Common stock
warrant discount $ 816 $ 816 $ 1,633 $ 1,633
Non-cash stock
based compensation 1,642 3,633 3,705 8,138
Utilization of
excess inventory (1,696) -- (1,696) --
Gain from insurance
settlement (285) -- (285) --
Total $ 477 $ 4,449 $ 3,357 $ 9,771
AVICI SYSTEMS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
(unaudited)
Three months ended Six months ended
June 30, June 30,
2002 2001 2002 2001
Gross Revenue $9,344 $21,414 $18,571 $37,125
Less - Common stock
warrant discount (816) (816) (1,633) (1,633)
Net revenue 8,528 20,598 16,938 35,492
Cost of revenue (1) 3,798 11,772 9,699 20,749
Gross margin 4,730 8,826 7,239 14,743
Operating expenses:
Research and
development (2) 14,178 15,862 28,591 30,970
Sales and
marketing (2) 3,811 5,279 7,507 10,326
General and
administrative (2) 1,968 2,514 3,848 4,822
Stock-based
compensation 1,642 3,633 3,705 8,138
Total operating
expenses 21,599 27,288 43,651 54,256
Loss from operations (16,869) (18,462) (36,412) (39,513)
Interest income, net 1,038 2,551 2,139 6,452
Other income 285 -- 285 --
Net loss $(15,546) $(15,911) $(33,988) $(33,061)
Net loss per share:
Basic and diluted $(0.31) $ (0.32) $ (0.68) $ (0.68)
Weighted average
common shares used in
computing net loss per
share:
Basic and diluted 49,820,329 49,207,321 49,788,030 48,962,680
(1) Cost of revenue for the three and six month periods ended June
30, 2002 includes a credit of $1,696 to recognize the utilization of
fully reserved inventory previously estimated to be in excess of
foreseeable requirements.
(2) Excludes noncash, stock-based compensation,
as follows:
Research and
development $ 996 $2,328 $2,289 $5,227
Sales and
marketing 394 997 871 2,162
General and
administrative 1968 2514 3848 4822
$1,642 $3,633 $3,705 $8,138
AVICI SYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, December 31,
2002 2001
(unaudited)
Assets
Cash and marketable securities $ 91,886 $128,935
Trade accounts receivable 7,202 2,830
Inventories 3,091 8,109
Other current assets 2,393 2,635
Total current assets 104,572 142,509
Property and equipment, net 36,146 41,728
Long Term Investments 46,659 35,506
Other assets 534 534
Total assets $187,911 $220,277
Liabilities and Stockholders' Equity
Accounts payable and
accrued expenses $ 12,756 $ 15,264
Deferred revenue 8,249 8,254
Current maturities of
long-term obligations 1,340 2,319
Long-term obligations 293 753
Stockholders' equity 165,273 193,687
Total liabilities and
Stockholders' equity $187,911 $220,277 |
