CORVIS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
(unaudited)
Quarter Ended Nine Months Ended
Sept. 28, Sept. 29, Sept. 28, Sept. 29,
2002 2001 2002 2001
Revenues $1,353 $24,157 $13,092 $173,203
Cost of sales 25,035 15,554 39,802 208,165
Gross profit (23,682) 8,603 (26,710) (34,962)
Operating expenses:
Research and development 32,980 34,827 95,123 117,751
Sales and marketing 10,954 12,672 36,147 43,185
General and administrative 7,231 7,652 24,408 27,163
Goodwill and other intangible
assets amortization
expense 5,658 12,014 12,833 113,890
Equity-based expense 17,707 28,202 54,684 79,274
Purchased research
and development - - 34,580 -
Restructuring and other
charges 31,313 131 35,664 606,866
Operating loss (129,525) (86,895) (320,149) (1,023,091)
Interest and other
income(expense), net 2,127 6,269 2,604 19,804
Net loss $(127,398) $(80,626) $(317,545) $(1,003,287)
Weighted average number
of common shares
outstanding
(in thousands) 410,323 352,335 385,643 349,490
Basic and diluted net
loss per common share $(0.31) $(0.23) $(0.82) $(2.87)
CORVIS CORPORATION
PRO FORMA
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (a)
(Dollars in thousands, except per share data)
(unaudited)
For Discussion Purposes Only
Quarter Ended Nine Months Ended
Sept. 28, Sept. 29, Sept. 28, Sept. 29,
2002 2001 2002 2001
Revenues $1,353 $24,157 $13,092 $173,203
Cost of sales 757 15,554 9,478 108,999
Gross profit 596 8,603 3,614 64,204
Operating expenses:
Research and development 32,980 34,827 95,123 117,751
Sales and marketing 10,954 12,672 36,147 43,185
General and administrative 7,231 7,652 24,407 27,163
Pro forma operating loss (50,569) (46,548) (152,063) (123,895)
Interest and other income,
net 2,127 6,269 2,604 28,486
Pro forma net loss $(48,442) $(40,279) $(149,459) $(95,409)
Weighted average number of
common shares outstanding
(in thousands) 410,323 352,335 385,643 349,490
Pro forma net loss
per common share $(0.12) $(0.11) $(0.39) $(0.27)
(a) Pro forma results exclude restructuring and other charges, goodwill and other intangible assets amortization expense, equity-based expense and purchased research and development associated with the acquisition of Dorsal Networks.
For the three months ended September 28, 2002, restructuring and other charges of $55.6 million recorded as $24.3 million to Cost of Sales and $31.3 million to Operating Expenses.
For the nine months ended September 28, 2002, restructuring and other charges of $70.8 million recorded as $30.3 million to Cost of Sales, $35.7 million to Operating Expenses and $4.8 million to Interest and Other Income, Net.
For the periods ended September 29, 2001, restructuring and other charges of $714.8 million recorded as $99.2 million to Cost of Sales, $606.9 million to Operating Expenses, including $588.3 million for the write-down of goodwill related to the Algety Telecom acquisition, and $8.7 million to Interest and Other Income, Net.
CORVIS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)
(Unaudited)
September 28, December 29,
2002 2001
Assets
Current assets:
Cash and cash equivalents $510,729 $638,872
Short-term investments 38,014 21,907
Trade accounts receivable 6,021 33,676
Inventory, net 74,472 96,426
Other current assets 12,544 17,486
Total current assets 641,780 808,367
Restricted cash, non-current 2,396 2,417
Property and equipment, net 104,852 134,393
Goodwill and intangible assets, net 58,593 21,429
Other non-current assets 2,811 12,219
Total assets $810,432 $978,825
Liabilities and stockholders' equity
Current liabilities:
Notes payable, current portion $105 $126
Capital lease obligations, current portion 3,866 6,796
Accounts payable 16,000 14,488
Accrued expenses and other liabilities 41,628 36,402
Provision for restructuring and other charges 19,697 24,050
Total current liabilities $81,296 $81,862
Notes payable, net of current portion 2,587 2,959
Capital lease obligations, net of current
portion 167 1,743
Deferred lease liability and other 2,871 3,408
Total liabilities 86,921 89,972
Commitments and contingencies
Common stock* 4,117 3,621
Additional paid-in capital 2,798,275 2,648,955
Shareholder notes receivable (32) -
Accumulated other comprehensive loss:
Foreign currency translation adjustment (8,377) (10,796)
Accumulated deficit (2,070,472) (1,752,927)
Total stockholders' equity 723,511 888,853
Total liabilities and stockholders' equity $810,432 $978,825
$0.01 per share par value; 1,900,000,000 authorized shares; 412,288,312 shares issued and outstanding as of 9/28/02; 362,687,909 shares issued and outstanding shares as of 12/29/01.
CORVIS CORPORATION
OTHER FINANCIAL INFORMATION
(Dollars in thousands)
(Unaudited)
Quarter Ended Nine Months Ended
Sept. 28, Sept. 29, Sept. 28, Sept. 29,
2002 2001 2002 2001
Capital expenditures $2,139 $7,531 $13,251 $ 93,634
Depreciation expense 9,506 8,569 26,956 20,482 |
