Corvis Corporation Files Form 10-K; Details Current Ownership in C III Communications
Tuesday March 25, 5:52 pm ET
COLUMBIA, Md., March 25 /PRNewswire-FirstCall/ -- Corvis Corporation (Nasdaq: CORV - News), a leading provider of intelligent optical networking solutions, announced today that is has filed its Form 10-K for its fiscal year 2002 with the United States Securities and Exchange Commission.
As part of the filing, Corvis provided additional details on its recent investment in C III Communications, LLC, a Delaware limited liability company. On February 22, 2003, C III Communications agreed to acquire most of the assets and certain of the liabilities of Broadwing Communications Services, Inc. for $129.3 million in cash. Corvis stated that it had agreed to invest approximately $128.0 million in C III Communications. Corvis has also agreed to contribute an additional $50.0 million to C III Communications by December 31, 2003 to fund ongoing operating expenses.
"This investment is a unique opportunity that can strengthen Corvis' long- term financial position and offers promising returns for our shareholders," said Dr. David Huber, chairman and chief executive officer of Corvis. "This investment does not change our ability to deliver the highest level of service to our customers."
Corvis said it would initially retain a 96% ownership interest in C III Communications. However, in connection with this transaction, Corvis stated that it is evaluating the possibility of raising a portion of these funds from other investors, which could reduce its committed investment amount and percentage of ownership.
"We have met, and will continue to meet, with third parties who are interested in investing in C III Communications," said Lynn Anderson, senior vice president, chief financial officer and treasurer of Corvis.
The assets acquired by C III Communications include 18,700 recently completed route miles of fiber optic cables; an all-optical backbone network primarily using Corvis equipment previously sold to Broadwing; a network operations center; and other network elements necessary to provide broadband telecommunications services. The asset purchase agreement was approved by Corvis' board of directors and is subject to customary closing conditions, including approval by the Federal Communications Commission and relevant state public utility commissions. The closing of the transaction is expected to be completed in up to six months.
Consistent with the company's policy, it will provide a complete update to its financial guidance during its first quarter 2003 quarterly conference call, which is currently scheduled for Tuesday, April 29, 2003 at 5:30 pm EDT.
For a more complete description of the transaction as well as other important information, the company recommends reviewing the Form 10-K as filed with the Securities and Exchange Commission. To obtain a copy of the Form 10- K, please visit either the S.E.C.'s website, www.sec.gov or Corvis' website, www.corvis.com.
About Corvis
From point-to-point links to all-optical networks to transoceanic systems, Corvis Corporation delivers innovative optical network solutions that drive carrier profitability faster than any other vendor. Headquartered in Columbia, MD, Corvis provides carriers with scalable optical networking solutions and services that dramatically reduce the overall expenses associated with building and operating networks. Carriers deploying Corvis' optical network solutions can provision new wavelength-based services and tailor dynamic service-level agreements for rapid revenue generation. For more information about Corvis, please visit its Web site www.corvis.com.
Corvis and the Corvis logo are trademarks and/or service marks of the Corvis Corporation. All other trademarks are the property of their respective owners.
Corvis Contact:
Andrew G. Backman
Vice President
Investor & Public Relations
(301) 310- 3080
Fax: (301) 310-3134
investorinformation@corvis.com
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Source: Corvis Corporation |
