Sycamore Networks, Inc. Reports Fourth Quarter and Fiscal Year 2006 Revenue Results
Wednesday August 30, 8:30 am ET
Complete Financial Results Delayed Pending Conclusion of Further Investigation Into Stock Option Grants
CHELMSFORD, Mass.--(BUSINESS WIRE)--Aug. 30, 2006--Sycamore Networks, Inc. (NASDAQ: SCMR - News), a leader in optical networking, today reported its revenue results for the fourth quarter and fiscal year ended July 31, 2006.
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Revenue for the fourth quarter of fiscal 2006 was $16.3 million, compared with $18.5 million for the fourth quarter of fiscal 2005. Revenue for fiscal 2006 was $87.4 million, compared with $65.4 million for fiscal 2005. Net cash and investments increased by $14.3 million during the fourth quarter to $985.1 million.
The Company also reported that, pending further investigation of recently discovered information relating to the granting of stock options, it is unable at this time to provide complete financial results for the fourth quarter and fiscal year ended July 31, 2006. This information was promptly reported to the Securities and Exchange Commission and the Department of Justice. In light of this information, the Company is further investigating stock option accounting issues and is not yet able to determine whether additional compensation charges will be required, or if required, whether any such charges would be material. Further, the Company is unable to determine whether financial statements for prior periods may be affected. While there can be no assurances as to the final results of this continuing investigation, Sycamore does not currently anticipate that the outcome of the investigation will require any material adjustments to the Company's historical revenues, non-stock option related expenses or cash positions. The Company will not file its Form 10-K for the year ended July 31, 2006 until the investigation has been completed. Sycamore will hold a conference call to discuss its complete financial results after filing its 10-K.
Commenting on the investigation, Daniel E. Smith, president and CEO, Sycamore Networks, said, "We take these matters very seriously and continue to cooperate with the regulatory authorities. We are working diligently to complete the investigation and report our complete financial results."
With respect to Sycamore's operational performance, Mr. Smith said, "We are pleased with our fiscal year 2006 performance. Key achievements included 34% year-over-year revenue growth, strong margins, expansion of business with new and existing customers, and four consecutive quarters of positive cash generation. While our Q4 results were impacted by the inherently lumpy nature of our business with large carrier customers, we did experience strong quarterly bookings. We continue to maintain unwavering focus on our customers' needs while further expanding the carrier-class solutions we can offer wireline and wireless network operators."
The Company also said it expects to complete the previously announced acquisition of Eastern Research, Inc. in early September.
About Sycamore Networks
Sycamore Networks, Inc. (NASDAQ: SCMR - News) is a leading provider of intelligent optical switching products for telecommunications service providers worldwide. The Company's products form the reliable foundation for some of the world's most respected and innovative communications networks. Sycamore's fully integrated edge-to-core optical switching solutions enable network operators to efficiently and cost-effectively provision and manage optical network capacity to support a wide range of voice, video and data services. For more information, please visit www.sycamorenet.com. |
