Sycamore Networks, Inc. Reports Fourth Quarter and Fiscal Year 2003 Financial Results
Tuesday August 19, 4:02 pm ET
CHELMSFORD, Mass.--(BUSINESS WIRE)--Aug. 19, 2003--Sycamore Networks, Inc. (NASDAQ: SCMR - News), a leader in intelligent optical networking, today reported its fourth quarter and fiscal year end results for the period ended July 31, 2003.
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Revenue for the fourth quarter of fiscal 2003 was $10.9 million, compared with $8.5 million for the fourth quarter of fiscal 2002.
Net loss for the fourth quarter of fiscal 2003, on a generally accepted accounting principles (GAAP) basis, was $9.7 million or $(0.04) per share, compared with a net loss of $73.5 million, or $(0.28) per share for the fourth quarter of fiscal 2002. Pro forma net loss for the fourth quarter was $10.9 million, or $(0.04) per share, compared with a pro forma net loss of $20.3 million, or $(0.08) per share for the fourth quarter of fiscal 2002. The reconciliation between net loss on a GAAP basis and pro forma net loss is provided in a table immediately following the Unaudited Pro Forma Consolidated Statements of Operations.
Revenue for fiscal 2003 was $38.3 million, compared with $65.2 million for fiscal 2002.
Net loss for fiscal 2003, on a GAAP basis, was $55.1 million or $(0.21) per share, compared with a net loss of $379.7 million, or $(1.49) per share for fiscal 2002. Pro forma net loss for fiscal 2003 was $52.0 million, or $(0.20) per share, compared with a pro forma net loss of $113.5 million, or $(0.45) per share for fiscal 2002.
"Fiscal year 2003 proved to be a challenging year for Sycamore and the telecommunications industry in general," stated Daniel E. Smith, Sycamore's president and chief executive officer. "Despite difficult market conditions, Sycamore remained focused on financial management, technology innovation and customer relationships. Each of these areas will continue to be a top priority in fiscal year 2004."
Conference Call Webcast
Sycamore plans to review its fourth quarter and fiscal year end results and discuss its business outlook during a conference call today beginning at 4:30 p.m. EDT. A Webcast of the conference call, along with GAAP reconciliation information, is available to all interested parties on the Sycamore web site located at www.sycamorenet.com under the Investor Relations section. Interested investors are encouraged to log onto the broadcast at least 15 minutes prior to the call. Participating in the call will be Sycamore's president and chief executive officer, Daniel E. Smith and chief financial officer, Frances M. Jewels.
About Sycamore Networks
Sycamore Networks, Inc. (NASDAQ: SCMR - News) develops and markets intelligent optical networking products for the telecommunications industry. Sycamore's optical switching products form the network foundation for some of the world's most respected and innovative service providers. The Company's fully integrated, intelligent network solutions enable its customers to reduce network costs, simplify operations, and deliver a new generation of high-speed network services. For more information, please visit www.sycamorenet.com.
Except for the historical information contained herein, we wish to caution you that certain matters discussed in this news release constitute forward-looking statements that involve risks and uncertainties. Actual results or events could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to the rate of product purchases by current and prospective customers; the commercial success of the Company's line of intelligent optical networking products; the Company's reliance on a limited number of customers; new product introductions and enhancements by the Company and its competitors; the length and variability of the sales cycles for the Company's products; competition; manufacturing and sourcing risks; variations in the Company's quarterly results; general economic conditions including stock market volatility and capital market conditions as well as conditions specific to the telecommunications, Internet and related industries; and the other factors discussed in the Company's most recently filed Quarterly Report on Form 10-Q and the other reports filed by the Company from time to time with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.
The Company provides pro forma financial data in addition to providing financial results in accordance with GAAP. These measures are not in accordance with, or an alternative for, GAAP and may be different from pro forma measures used by other companies. The Company believes that this presentation of pro forma financial data provides useful information to management and investors regarding certain additional financial and business trends relating to its financial condition and results of operations. In addition, the Company's management uses these measures for reviewing the Company's financial results and for budget-planning purposes.
Sycamore Networks, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
July 31, July 31,
2003 2002
Assets
Current assets:
Cash and cash equivalents $250,595 $172,658
Short-term investments 421,784 509,350
Accounts receivable, net 10,769 18,187
Inventories 5,117 12,940
Prepaids and other current assets 3,680 3,447
Total current assets 691,945 716,582
Property and equipment, net 14,589 32,696
Long-term investments 323,204 361,537
Other assets 2,890 7,760
Total Assets $1,032,628 $1,118,575
Liabilities and Stockholders' Equity
Deferred revenue $2,677 $4,978
Other current liabilities 18,350 26,907
Restructuring liabilities 19,086 48,167
Total current liabilities 40,113 80,052
Common stock 272 274
Additional paid-in capital 1,733,476 1,732,846
Accumulated deficit (736,192) (681,086)
Other equity (5,041) (13,511)
Total stockholders' equity 992,515 1,038,523
Total Liabilities and Stockholders' Equity $1,032,628 $1,118,575
Sycamore Networks, Inc.
Unaudited Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended Year Ended
July 31, July 31, July 31, July 31,
2003 2002 2003 2002
Revenue $10,912 $8,549 $38,276 $65,174
Cost of revenue 7,260 5,816 33,692 150,880
Stock-based compensation 358 422 1,412 1,815
Gross profit (loss) 3,294 2,311 3,172 (87,521)
Operating expenses:
Research and development 12,399 21,604 52,426 109,638
Sales and marketing 4,865 5,732 19,756 39,680
General and
administrative 1,977 2,173 7,237 10,160
Stock-based compensation 1,207 4,802 6,627 22,812
Payroll tax on stock
option exercises 4 19 21 38
Restructuring charges
and related asset
impairments (benefit) (2,254) 47,684 (4,447) 124,990
Total operating
expenses 18,198 82,014 81,620 307,318
Loss from operations (14,904) (79,703) (78,448) (394,839)
Losses on investments - (2,108) - (24,845)
Interest and other income,
net 5,171 8,281 23,342 40,027
Net loss $(9,733) $(73,530) $(55,106) $(379,657)
Diluted net loss per share $(0.04) $(0.28) $(0.21) $(1.49)
Weighted average shares
used in computing diluted
net loss per share 268,890 260,020 265,702 254,663
Sycamore Networks, Inc.
Unaudited Pro Forma Consolidated Statements of Operations
See pro forma adjustments listed in table below
(in thousands, except per share data)
Three Months Ended Year Ended
July 31, July 31, July 31, July 31,
2003 2002 2003 2002
Revenue $10,912 $8,549 $38,276 $65,174
Cost of revenue 7,791 7,581 34,223 59,250
Gross profit 3,121 968 4,053 5,924
Operating expenses:
Research and development 12,399 21,604 52,426 109,638
Sales and marketing 4,865 5,732 19,756 39,680
General and administrative 1,977 2,173 7,237 10,160
Total operating
expenses 19,241 29,509 79,419 159,478
Loss from operations (16,120) (28,541) (75,366) (153,554)
Interest and other
income, net 5,171 8,281 23,342 40,027
Net loss $(10,949) $(20,260) $(52,024) $(113,527)
Diluted net loss per share $(0.04) $(0.08) $(0.20) $(0.45)
Weighted average shares used
in computing diluted net
loss per share 268,890 260,020 265,702 254,663
The results above are pro
forma and have been adjusted
to exclude the following items:
Stock-based compensation
included in gross profit $358 $422 $1,412 $1,815
Stock-based compensation
included in operating expenses 1,207 4,802 6,627 22,812
Payroll tax on stock option
exercises 4 19 21 38
Restructuring charges and
related asset impairments
(benefit) (2,254) 47,684 (4,447) 124,990
Excess inventory charge
(benefit) (531) (1,765) (531) 91,630
Losses on investments - 2,108 - 24,845
$(1,216) $53,270 $3,082 $266,130
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Contact:
Press Inquiries
Sycamore Networks, Inc.
Scott Larson, 978-250-3433
Public Relations
scott.larson@sycamorenet.com
or
Investor Inquiries
Sycamore Networks, Inc.
Andrew Kramer, 978-367-7368
Investor Relations
andy.kramer@sycamorenet.com
[Harry: Beat estimates by a penny. Increased gross margins from 15 percent to 30 percent. Beat revenues from last quarter of 10.6 mil. Showing signs of an improving business model. It is all down to forward guidance on demand.] |
