Now we wait for the conference call:
Riverstone Networks Reports Record Third Quarter: Revenues Increase 124% Year Over Year to $60.1 Million, Company Reports Pro Forma Profit of $0.03 Per Share
SANTA CLARA, Calif., Dec 19, 2001 (BUSINESS WIRE) --
Riverstone Networks, Inc., (Nasdaq:RSTN) today reported revenues of $60.1 million for its fiscal third quarter 2002, which ended December 1, 2001, a 124 percent increase compared with revenues of $26.8 million for the same period last year and an 8.7 percent increase compared with revenues of $55.3 million for the prior quarter. Pro forma net income for the quarter was $3.6 million or $0.03 per share, compared with a pro forma net loss of $7.1 million or $0.08 per share for the third quarter of fiscal 2001, and a pro forma net income of $1.6 million or $0.01 per share for the prior quarter. GAAP net income for the third quarter, which includes stock-based compensation and amortization of goodwill, was $2.2 million or $0.02 per share. This compares with a net loss of $34.9 million or $0.38 per share for the third quarter of fiscal 2001. GAAP net income for the prior quarter was $64,000, or breakeven on a per share basis. "We are pleased to deliver another record quarter of increasing revenues, profit and market share," said Romulus Pereira, Riverstone president and chief executive officer. "Riverstone continues to set the standard for carrier products in the metro market. Our solutions enable our customers to create and deliver profitable services, lower costs, and maximize returns from their infrastructure." Third Quarter Highlights -- Riverstone extends metro leadership with key wins worldwide. During the third quarter, Cox Communications (NYSE:COX) selected Riverstone for the build-out of its U.S. data network. The build-out consists of hundreds of Riverstone routers being deployed across Cox's nationwide cable system. In addition, DACOM Corp., a leading Asian telecommunications carrier, chose Riverstone to create a nationwide MPLS network to facilitate the delivery of advanced services, including video and music streaming through scalable broadband IP services. These wins extended Riverstone's list of tier-one customers -- which includes Korea Telecom, British Telecom, Telefonica, Hutchison Global Crossing, and NTT. -- Leading Industry analysts rank Riverstone No. 1 in key metro market segments. According to The Dell'Oro Group, Riverstone is ranked as the market share leader for Layer-3 wide area networking, a crucial metro networking segment, with 57 percent market share in the third quarter, up from 37 percent in the previous quarter. Similarly, Infonetics Research named Riverstone the market share leader for last mile Ethernet CPE during the quarter. -- Riverstone strengthens its technology advantage with new carrier-class technologies. In response to service providers' needs for high availability metropolitan networks, Riverstone introduced two new carrier class technology advancements in the third quarter. Riverstone's Rapid Ring Spanning Tree Protocol (RRSTP) delivers superior network failure protection, enabling carriers to reduce operating costs and deliver highly reliable services. Riverstone's Hitless Protection System (HPS), now standard on all RS-family routers, delivers telco-class failover capabilities to IP and Ethernet networks, extending carrier-grade availability to metro-based video, voice and premium data services. Conference Call Scheduled for December 19 Riverstone Networks will hold a conference call to discuss its third quarter results and its business outlook at 5:00 p.m. EST on December 19, 2001. Investors can listen to the conference call on the Internet. To listen to the live call, go to ir.riverstonenet.com at least 15 minutes prior to the start time to download and install necessary audio software. For those unable to listen to the live broadcast, a 48-hour replay will be available one hour after the conclusion of the call at ir.riverstonenet.com and at 303/590-3000, pass code 423144. About Riverstone Networks Riverstone Networks, Inc., (Nasdaq:RSTN) builds routers that convert raw bandwidth into profitable services for Metropolitan Area Networks. Riverstone's products enable the creation of profitable services and the delivery of these services over next-generation and legacy networks, including SONET/SDH, Gigabit Ethernet, T1/E1, T3/E3, ATM, and Wavelength Division Multiplexing (WDM). Riverstone products bring together fourth-generation Application Specific Integrated Circuits (ASICs), battle-tested routing software, and unparalleled media versatility to deliver comprehensive solutions for Metropolitan Area Networks. Riverstone's products are deployed in more than 40 countries and in some of the world's largest networks, including British Telecom, Korea Telecom, Qwest Communications, Cox Communications, MAE West Ames, EarthLink, NTT, and Telefonica. For more information, please visit the company's Web site at www.riverstonenet.com. Cautionary Note Regarding Forward-looking Statements Except for the historical information contained herein, the matters set forth in this press release, including statements as to the features and benefits of Riverstone Network's products and expectations regarding the extent of the deployment of Riverstone Networks' products by its customers, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements speak only as of the date hereof and are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, but are not limited to, risks associated with the market for network equipment; risks associated with rapid technological change; lack of acceptance of products; introduction of new products by competitors; declines in the average selling price of Riverstone Networks' products; and adverse economic conditions in any of the major countries in which Riverstone Networks does business. Further information on potential risk factors that could affect the financial results of Riverstone Networks are included in its quarterly report on Form 10-Q for the quarter ended September 1, 2001 and other reports it files from time to time with the Securities and Exchange Commission. Riverstone Networks disclaims any intent or obligation to update or revise these forward-looking statements. Note to Editors: Riverstone Networks is a trademark of Riverstone Networks, Inc. All other trademarks, service marks, and trade names belong to their respective owners. -T RIVERSTONE NETWORKS, INC. PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS Excluding amortization of goodwill and stock-based compensation (In thousands, except share and per-share amounts, unaudited) Three months ended Nine months ended ------------------------ ------------------------ December 1, December 2, December 1, December 2, 2001 2000 2001 2000 ---------- ---------- ---------- ---------- NET REVENUES $ 60,056 $ 26,784 $ 159,473 $ 63,116 ---------- ---------- ---------- ---------- Cost of revenues 25,570 11,643 68,375 28,071 ---------- ---------- ---------- ---------- GROSS PROFIT 34,486 15,141 91,098 35,045 ---------- ---------- ---------- ---------- Operating expenses: Research and development 11,399 10,061 38,276 30,566 ---------- ---------- ---------- ---------- Sales and marketing 14,497 10,012 41,284 24,902 ---------- ---------- ---------- ---------- General and administrative 6,142 2,956 16,181 8,369 ---------- ---------- ---------- ---------- Total operating expenses 32,038 23,029 95,741 63,837 ---------- ---------- ---------- ---------- OPERATING INCOME/(LOSS) 2,448 (7,888) (4,643) (28,792) ---------- ---------- ---------- ---------- Interest income/ (expense), net 1,322 779 6,349 1,545 ---------- ---------- ---------- ---------- NET INCOME/(LOSS) BEFORE TAXES 3,770 (7,109) 1,706 (27,247) ---------- ---------- ---------- ---------- Income taxes 210 - 210 - ---------- ---------- ---------- ---------- NET INCOME/(LOSS) $ 3,560 $ (7,109) $ 1,496 $ (27,247) ---------- ---------- ---------- ---------- Net income/(loss) per share--basic $ 0.03 $(71,090.00) $ 0.01 $(272,470.00) ---------- ---------- ---------- ---------- Shares used in per-share calculation-- basic 117,634,000 100 112,014,000 100 ----------- ---------- ----------- ---------- Net income/ (loss) per share--fully diluted $ 0.03 $(71,090.00) $ 0.01 $(272,470.00) ---------- ---------- ---------- ---------- Shares used in per-share calculation-- fully diluted 136,055,000 100 133,770,000 100 ----------- ---------- ----------- ---------- Pro forma net income/(loss) per share-- basic and diluted $ - $ (0.08) $ - $ (0.30) ---------- ---------- ---------- ---------- Pro forma weighted number of shares used in per-share calculation--basic and diluted - 92,088,000 - 92,088,000 ---------- ---------- ---------- ---------- The above pro forma amounts have been adjusted to exclude the following items: Amortization of goodwill 388 388 1,164 1,286 ---------- ---------- ---------- ---------- Stock-based compensation 1,016 27,410 2,821 30,662 ---------- ---------- ---------- ---------- RIVERSTONE NETWORKS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per-share amounts, unaudited) Three months ended Nine months ended ------------------------ ------------------------ December 1, December 2, December 1, December 2, 2001 2000 2001 2000 ---------- ---------- ---------- ---------- NET REVENUES $ 60,056 $ 26,784 $ 159,473 $ 63,116 ---------- ---------- ---------- ---------- Cost of revenues 25,570 11,643 68,375 28,071 ---------- ---------- ---------- ---------- Stock-based compensation 252 - 438 - ---------- ---------- ---------- ---------- Total cost of revenues 25,822 11,643 68,813 28,071 ---------- ---------- ---------- ---------- GROSS PROFIT 34,234 15,141 90,660 35,045 ---------- ---------- ---------- ---------- Operating expenses: Research and development 11,399 10,061 38,276 30,566 ---------- ---------- ---------- ---------- Sales and marketing 14,497 10,012 41,284 24,902 ---------- ---------- ---------- ---------- General and administrative 6,530 3,344 17,345 9,655 ---------- ---------- ---------- ---------- Stock-based compensation 764 27,410 2,383 30,662 ---------- ---------- ---------- ---------- Total operating expenses 33,190 50,827 99,288 95,785 ---------- ---------- ---------- ---------- OPERATING INCOME/(LOSS) 1,044 (35,686) (8,628) (60,740) ---------- ---------- ---------- ---------- Interest income/ (expense), net 1,322 779 6,349 1,545 ---------- ---------- ---------- ---------- NET INCOME/(LOSS) BEFORE TAXES $ 2,366 $ (34,907) $ (2,279) $ (59,195) ---------- ---------- ---------- ---------- Income taxes 210 - 210 - ---------- ---------- ---------- ---------- NET INCOME/(LOSS) $ 2,156 $ (34,907) $ (2,489) $ (59,195) ---------- ---------- ---------- ---------- Net income/(loss) per share--basic $ 0.02 $(349,070.00) $ (0.02) $(591,950.00) ---------- ---------- ---------- ---------- Shares used in per-share calculation-- basic 117,634,000 100 112,014,000 100 ----------- ---------- ----------- ---------- Net income/(loss) per share-- fully diluted $ 0.02 $(349,070.00) $ (0.02) $(591,950.00) ---------- ---------- ---------- ---------- Shares used in per-share calculation-- fully diluted 136,055,000 100 112,014,000 100 ----------- ---------- ----------- ---------- Pro forma net loss per share--basic and diluted $ - $ (0.38) $ - $ (0.64) ---------- ---------- ---------- ---------- Pro forma weighted number of shares used in per-share calculation-- basic and diluted - 92,088,000 - 92,088,000 ---------- ---------- ---------- ---------- RIVERSTONE NETWORKS, INC. CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) December 1, March 3, 2001 2001 ----------- ----------- ASSETS Current Assets: Cash and cash equivalents $ 162,537 $ 167,949 ----------- ----------- Short-term investments 136,231 21,540 ----------- ----------- Accounts receivable, net 47,451 29,891 ----------- ----------- Accounts receivable, related parties - 1,241 ----------- ----------- Inventories, net 16,737 11,169 ----------- ----------- Prepaid expenses and other current assets 16,835 9,758 ----------- ----------- Total current assets 379,791 241,548 ----------- ----------- Property and equipment, net 20,655 14,020 ----------- ----------- Intangible and other long-term assets, net 25,236 8,475 ----------- ----------- Long-term investments 202,298 - ----------- ----------- TOTAL ASSETS $ 627,980 $ 264,043 ----------- ----------- LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 30,362 $ 19,931 ----------- ----------- Accounts payable, related parties - 4,583 ----------- ----------- Deferred revenue 8,256 10,550 ----------- ----------- Accrued expenses 19,382 10,197 ----------- ----------- Total current liabilities 58,000 45,261 ----------- ----------- Convertible subordinated notes 175,000 - TOTAL LIABILITIES 233,000 45,261 ----------- ----------- Stockholders' equity 394,980 218,782 ----------- ----------- LIABILITIES AND STOCKHOLDERS' EQUITY $ 627,980 $ 264,043 ----------- -----------
CONTACT: Riverstone Networks, Inc. Peter Ruzicka, 408/878-6756 (Public Relations) pruzicka@riverstonenet.com Tracy Urquhart, 408/878-6593 (Investor Relations) tracyu@riverstonenet.com URL: businesswire.com |
