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To: Tom Hua who wrote (9403)	5/15/2001 5:15:32 PM
From: zx	Respond to of 19633

Sycamore Networks turns in a loss By Ted Griffith, CBS.MarketWatch.com Last Update: 4:51 PM ET May 15, 2001 CHEMLSFORD, Mass. (CBS.MW) -- Sycamore Networks dipped into the red in its fiscal third quarter as revenue declined, the maker of optical networking equipment reported Tuesday. FRONT PAGE NEWS U.S. markets end mixed pondering rate cut Fed cuts rates, signals more on the way Is it art, or just another ad? Beyond the 'B2B' buzzword Market news and more! Sign up to receive FREE email newsletters Get the latest news 24 hours a day from our 100-person news team. Sycamore said its third-quarter loss, excluding certain charges, was $46.2 million, or 19 cents per share, compared with a profit of $6.8 million, or 2 cents per share, in the same period last year. The loss was slightly wider than the 18 cents per share that analysts, on average, had expected, according to First Call/Thomson Financial. Chelmsford, Mass.-based Sycamore (SCMR: news, msgs, alerts) said revenue declined to $54.2 million from $59.2 million in the year-ago quarter. The company said it's facing "challenges" because of a decline in customers' capital spending as well as the overall economic slowdown. But Sycamore said a recent restructuring should "lead to improved near-term financial performance over the third quarter, as well as position us to resume long-term growth as market conditions improve." During the third quarter, Sycamore announced a program to reduce its work force and consolidate facilities. The company said it took a charge of $165.8 million related to the restructuring. Including all expenses, Sycamore had a net loss of $225 million, or 94 cents per share, compared with a net profit of $5.7 million, or 2 cents per share, last year. Ahead of the report, which was released after the close of regular trading, Sycamore shares edged down 7 cents to $9.32. Once a Wall Street darling, Sycamore's stock has tumbled along with the stocks of other telecom and optical networking companies. Sycamore's stock is off more than 90 percent from its 52-week high of $172.50. Ted Griffith is a reporter for CBS.MarketWatch.com Latest Industry News