Avanex Updates Outlook for Financial Results;
Conference Call Today at 4:30 pm EDT
Updated: Tuesday, February 27, 2001 04:05 PM ET
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FREMONT, Calif., Feb. 27 /PRNewswire/ --
Avanex Corporation (Nasdaq: AVNX, news, msgs), pioneer of photonic processors that accelerate the deployment of the
next-generation optical networks, today announced revised outlook for the third fiscal quarter ending March 30, 2001, for
fiscal year 2001 and for calendar year 2001.
The Company announced that it expects sales in the third quarter of fiscal year 2001 to be
approximately $41 million (compared to $10.5 million in the third fiscal quarter of 2000) and
pro forma diluted earnings per share to be $0.02 to $0.03 (compared to a loss of $0.04 in
the third fiscal quarter of 2000). Avanex expects gross margins in the quarter to be
approximately 46.5% as a result of the revision in revenue estimates.
For fiscal year 2001, Avanex now expects revenues of approximately $169 million
(compared to $41 million in fiscal year 2000) and pro forma diluted earnings per share to be
$0.15-$0.16 (compared to a loss of $0.11). For calendar year 2001, the company expects
revenues of approximately $200 million (compared to $113 million in calendar year 2000)
and pro forma diluted earnings per share to be $0.20-$0.21 (compared to EPS of $0.05).
In today's announcement, Walter Alessandrini, Avanex Chairman and CEO, noted that
"orders for our more mature product line, PowerFilter(TM), have been temporarily impacted
by the carriers' lower spending on legacy systems, even though we continue to see significant increases in international
orders, in orders for our next-generation products and in the number of customers we serve."
Alessandrini said that the company expects its next-generation PowerMux(TM) and PowerExchanger(TM) to represent over
70% of revenues in its third quarter, compared to about 45% in the second quarter, while international sales will grow to over
50% of revenues as compared to about 20% in the second quarter. The company also expects to add a new 10% customer,
Alcatel, in its third quarter.
"Even though we continue to see strong growth for the company as our next- generation products take increasing hold in the
marketplace, we believe it is prudent to be more conservative regarding our short-term outlook," said Alessandrini. "We
remain very confident that our strategy to provide premier advanced technology products will continue to place us at the front
of the growth curve as carriers around the world continue to increase investments in next generation networks."
Conference Call
Avanex will discuss its revised guidance on a conference call scheduled today, February 27, at 4:30 p.m. EDT. The number
for the conference call is 888-677-5726. The password is "AVANEX." A replay of the conference call will be available through
March 6, 2001, at 800-568-4204.
About Avanex
Avanex designs, manufactures and markets photonic processors for the communications industry. Avanex's photonic
processors offer communications service providers and optical systems manufacturers greater levels of performance and
miniaturization, reduced complexity and increased cost- effectiveness as compared to current alternatives.
Avanex was incorporated in 1997 and is headquartered in Fremont, Calif. In addition to a development and manufacturing
facility in Fremont, the company also maintains The Photonics Center(TM) in Richardson, Texas and a development facility
in Hudson, Mass.
To learn more about Avanex, visit its web site at: www.avanex.com.
Forward-looking Statements
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933
and Section 21E of the Securities and Exchange Act. Actual results could differ materially from those projected in the
forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, our
inability to sufficiently anticipate market needs and develop products and product enhancements that achieve market
acceptance.
Avanex undertakes no obligation to publicly release the result of any revisions to these forward-looking statements, which
may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
CONTACT: Mark Weinswig, 510-897-4344, or fax, 510-897-4345, or e-mail, mark_weinswig@avanex.com, or Tony Florence,
510-897-4162, or fax, 510-979-0198, or e-mail, tony_florence@avanex.com, both of Avanex Corporation.
SOURCE Avanex Corporation
CONTACT: Mark Weinswig, 510-897-4344, or fax, 510-897-4345, or e-mail, mark_weinswig@avanex.com, or Tony Florence,
510-897-4162, or fax, 510-979-0198, or e-mail, tony_florence@avanex.com, both of Avanex Corporation |
