Sycamore Networks, Inc. Reports Third Quarter Fiscal Year 2003 Financial Results
CHELMSFORD, Mass.--(BUSINESS WIRE)--May 13, 2003--Sycamore Networks, Inc. (NASDAQ:SCMR), a leader in intelligent optical networking, today reported its third quarter results for the period ended April 26, 2003.
Revenue for the third quarter of fiscal 2003 was $10.6 million, compared with $13.6 million for the third quarter of fiscal 2002.
Net loss for the third quarter of fiscal 2003, on a generally accepted accounting principles (GAAP) basis, was $11.9 million or
$(0.04) per share, compared with a net loss of $22.8 million, or
$(0.09) per share for the third quarter of fiscal 2002. Pro forma net loss for the third quarter was $12.1 million, or $(0.05) per share, compared with a pro forma net loss of $26.3 million, or $(0.10) per share for the third quarter of fiscal 2002. The reconciliation between net loss on a GAAP basis and pro forma net loss is provided in a table immediately following the Unaudited Pro Forma Consolidated Statements of Operations.
Revenue for the first nine months of fiscal 2003 was $27.4 million, compared with $56.6 million for the first nine months of fiscal 2002.
Net loss for the first nine months of fiscal 2003, on a GAAP basis, was $45.4 million or $(0.17) per share, compared with a net loss of $306.1 million, or $(1.21) per share for the first nine months of fiscal 2002. Pro forma net loss for the first nine months of fiscal 2003 was $41.1 million, or $(0.16) per share, compared with a pro forma net loss of $93.3 million, or $(0.37) per share for the first nine months of fiscal 2002.
"During the quarter, Sycamore continued to drive improved operating results and demonstrate sound cash management," stated Daniel E. Smith, Sycamore's president and chief executive officer. "While the market conditions remain challenging, Sycamore continues to focus on technology innovation and customer relationships. As we navigate current market conditions, we have implemented a range of initiatives aimed at enhancing our products, improving operational efficiencies and maintaining our balance sheet strength."
In addition, Sycamore announced today that it has entered into an agreement with Plexus Corp. (Nasdaq:PLXS) under which Plexus will become one of Sycamore's contract manufacturing partners and will provide manufacturing services to Sycamore for its intelligent optical switching products.
Conference Call Webcast
Sycamore plans to review its third-quarter results and discuss its business outlook during a conference call today beginning at 4:30 p.m. EDT. A Webcast of the conference call, along with GAAP reconciliation information, is available to all interested parties on the Sycamore web site located at www.sycamorenet.com under the Investor Relations section. Interested investors are encouraged to log onto the broadcast at least 15 minutes prior to the call. Participating in the call will be Sycamore's president and chief executive officer, Daniel E. Smith and chief financial officer, Frances M. Jewels.
About Sycamore Networks
Sycamore Networks, Inc. (NASDAQ:SCMR) develops and markets intelligent optical networking products for the telecommunications industry. Sycamore's optical switching products are forming the network foundation for some of the world's most respected and innovative service providers. The software intelligence common to all Sycamore products empowers rapid deployment and delivery of services, from the edge to the core of the network. Contact Sycamore Networks at www.sycamorenet.com.
Except for the historical information contained herein, we wish to caution you that certain matters discussed in this news release constitute forward-looking statements that involve risks and uncertainties. Actual results or events could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to the rate of product purchases by current and prospective customers; the commercial success of the Company's line of intelligent optical networking products; the Company's reliance on a limited number of customers; new product introductions and enhancements by the Company and its competitors; the length and variability of the sales cycles for the Company's products; competition; manufacturing and sourcing risks; variations in the Company's quarterly results; general economic conditions including stock market volatility and capital market conditions as well as conditions specific to the telecommunications, Internet and related industries; and the other factors discussed in the Company's most recently filed Quarterly Report on Form 10-Q and the other reports filed by the Company from time to time with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.
The Company provides pro forma financial data in addition to providing financial results in accordance with GAAP. These measures are not in accordance with, or an alternative for, GAAP and may be different from pro forma measures used by other companies. The Company believes that this presentation of pro forma financial data provides useful information to management and investors regarding certain additional financial and business trends relating to its financial condition and results of operations. In addition, the Company's management uses these measures for reviewing the Company's financial results and for budget-planning purposes.
*T Sycamore Networks, Inc. Unaudited Condensed Consolidated Balance Sheets (in thousands)
April 26, July 31,
2003 2002
----------- ----------- Assets
Current assets: Cash and cash equivalents $237,444 $172,658
Short-term investments 320,762 509,350
Accounts receivable, net 11,275 18,187
Inventories 6,928 12,940
Prepaids and other current assets 4,567 3,447
----------- ----------- Total current assets 580,976 716,582
Property and equipment, net 17,025 32,696 Long-term investments 446,791 361,537 Other assets 3,331 7,760
----------- ----------- Total Assets $1,048,123 $1,118,575
Liabilities and Stockholders' Equity
Deferred revenue $3,988 $4,978 Other current liabilities 18,140 26,907 Restructuring liabilities 24,905 48,167
----------- ----------- Total current liabilities 47,033 80,052
Common stock 272 274 Additional paid-in capital 1,733,768 1,732,846 Accumulated deficit (726,459) (681,086) Other equity (6,491) (13,511)
----------- ----------- Total stockholders' equity 1,001,090 1,038,523
----------- ----------- Total Liabilities and Stockholders' Equity $1,048,123 $1,118,575
Sycamore Networks, Inc. Unaudited Consolidated Statements of Operations (in thousands, except per share data)
Three Months Ended Nine Months Ended
April 26, April 27, April 26, April 27,
2003 2002 2003 2002
----------- --------- ------------- ----------
Revenue $10,601 $13,582 $27,364 $56,625 Cost of revenue 8,702 3,050 26,432 145,064 Stock-based compensation 341 441 1,054 1,393
----------- --------- ------------- ---------- Gross profit (loss) 1,558 10,091 (122) (89,832)
Operating expenses: Research and
development 12,678 25,541 40,027 88,035
Sales and marketing 4,883 8,870 14,891 33,948
General and
administrative 1,852 2,183 5,260 7,987
Stock-based
compensation 1,656 5,101 5,420 18,009
Payroll tax on stock
option exercises 2 4 17 19
Restructuring charges
and related asset
impairments (2,193) - (2,193) 77,306
----------- --------- ------------- ----------
Total operating
expenses 18,878 41,699 63,422 225,304
Loss from operations (17,320) (31,608) (63,544) (315,136)
Losses on investments - - - (22,737)
- Interest and other income, net 5,426 8,765 18,171 31,746
----------- --------- ------------- ---------- Net loss $(11,894) $(22,843) $(45,373) $(306,127)
Diluted net loss per share $(0.04) $(0.09) $(0.17) $(1.21) Weighted average shares used in computing
diluted net loss per
share 266,638 256,468 264,640 252,877
Sycamore Networks, Inc. Unaudited Pro Forma Consolidated Statements of Operations See pro forma adjustments listed in table below
(in thousands, except per share data)
Three Months Ended Nine Months Ended
April 26, April 27, April 26, April 27,
2003 2002 2003 2002
--------- --------- ----------- ----------
Revenue $10,601 $13,582 $27,364 $56,625 Cost of revenue 8,702 12,088 26,432 51,670
--------- --------- ----------- ----------
Gross profit 1,899 1,494 932 4,955
Operating expenses:
Research and development 12,678 25,541 40,027 88,035
Sales and marketing 4,883 8,870 14,891 33,948
General and
administrative 1,852 2,183 5,260 7,987
--------- --------- ----------- ----------
Total operating
expenses 19,413 36,594 60,178 129,970
Loss from operations (17,514) (35,100) (59,246) (125,015)
Interest and other income, net 5,426 8,765 18,171 31,746
--------- --------- ----------- ---------- Net loss $(12,088) $(26,335) $(41,075) $(93,269)
Diluted net loss per share $(0.05) $(0.10) $(0.16) $(0.37) Weighted average shares used in computing diluted net loss per share 266,638 256,468 264,640 252,877
The results above are pro forma and have been adjusted to exclude the following items:
Stock-based compensation included in gross profit $341 $441 $1,054 $1,393 Stock-based compensation included in
operating expenses 1,656 5,101 5,420 18,009 Payroll tax on stock option exercises 2 4 17 19 Restructuring charges and related asset
impairments (benefit) (2,193) - (2,193) 77,306 Excess inventory charge
(benefit) - (9,038) - 93,394 Losses on investments - - - 22,737
--------- --------- ----------- ----------
$(194) $(3,492) $4,298 $212,858
*T
CONTACT:
Sycamore Networks, Inc.
Lucia Graziano, Public Relations, 978/250-3447
lucia.graziano@sycamorenet.com
or
Andrew Kramer, Investor Relations, 978/367-7368
andy.kramer@sycamorenet.com
SOURCE: Sycamore Networks, Inc.
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05/13/2003 16:01 EASTERN |
