Avici Reports Record 4th Quarter Results
NORTH BILLERICA, Mass.--(BUSINESS WIRE)--Jan. 18, 2001 -- Avici Systems Inc. (NASDAQ: AVCI), a leading provider of scalable core routing solutions for intelligent IP-over-optical networks, today reported record revenues for its fourth quarter ended December 31, 2000 of $8,809,000 and a pro forma net loss (excluding non-cash equity related charges) for the December 2000 quarter of $12,487,000 or a pro forma net loss per share of $0.26. Fourth quarter revenues increased 102% from the preceding quarter. Cash, securities and investments totaled $254,932,000 at December 31, 2000.
Surya Panditi, Co-Chairman and Chief Executive Officer of Avici said "I am pleased to report that AT&T, Qwest and Enron each accounted for over 10% of total revenues thus enabling us to exceed our revenue expectations for the quarter." Mr. Panditi continued, "I am also excited about the sequential quarter reduction in our pro forma operating loss and pro forma net loss while we continue to build and strengthen our infrastructure in support of our growing customer base."
Including non-cash equity related charges, net revenues, net loss and net loss per share for the December 2000 quarter were $7,993,000, $18,406,000 and $0.38 per share, respectively. Full year 2000 results on a pro forma basis and including non-cash equity and special charges are also presented in the accompanying tables.
"The past several months have represented a period of significant achievement for Avici", said Mr. Panditi. "In addition to our strong revenue growth and bottom line improvement in the December quarter, and the announcement by AT&T earlier this month of its coast-to-coast OC-192 deployment, we achieved a number of other significant product and customer milestones. In October we announced the release of our
3.0 IPriori software that includes support for MPLS traffic engineering. In January, we announced upcoming availability of our OC-192c module and dual port OC-48c module providing unmatched port density. On the customer front, we announced in October that Qwest had selected the TSR for trials in its next generation network. In December we established a foothold in Europe with the announcement of our first commercial contract under which our TSR will be included in an experimental network sponsored by France Telecom." Mr. Panditi concluded, " I believe these achievements have validated our product and our emerging position in the industry. I look forward to further progress and continued growth in 2001."
To listen to Avici's live Web cast of fourth quarter earnings, or to listen to a replay of the Q4 2000 financial results conference call please visit the Avici web site at http://www.avici.com.
About Avici Systems
Avici Systems Inc., headquartered in North Billerica, Mass., is a developer
of next-generation Internet backbone platforms that help carriers reduce
network costs and provide the packet intelligence needed to build revenue
generating services on top of core optical networks. Avici's technologies
offer superior scalability, resiliency and port density enabling just-in-time
bandwidth provisioning, high reliability and the quality of service
needed for carriers and ISPs to support mission-critical applications
of the future. Visit Avici's World Wide Website at http://www.avici.com
TSR and Avici is a registered trademark of Avici Systems Inc.
In addition to the historical information contained herein, this press release may contain projections or other forward-looking statements regarding future events, the plans and objectives of Avici or the future financial performance of Avici that involve risks and uncertainties. Avici wishes to caution readers that these forward-looking statements are only predictions and that actual results may differ materially from those stated or implied in the forward-looking statements. Readers are referred to the documents filed by Avici with the Securities and Exchange Commission, specifically the Company's Form S-1 and the most recent report on Form 10-Q, including amendments thereto, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including, but not limited to, risks associated with market acceptance of Avici products, services and enhancements, customer purchasing patterns and commitments, Avici's dependence on a limited number of large customers, development of the market place, product development and enhancement, expansion of sales channels, intensity of competition of other vendors, and technological changes, among others. When used in this press release, the words, "may," "will," "expect", "believe," "intend," and other similar expressions are intended to identify such forward-looking statements. Avici assumes no obligations to update the information included in this press release.
AVICI SYSTEMS INC.
PROFORMA CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
(unaudited)
Note 1
Three months ended Twelve months ended
December 31, December 31,
2000 1999 2000 1999
Revenues $ 8,809 $ -- $ 15,886 $ --
Cost of revenues 5,718 -- 11,158 --
Gross margin 3,091 -- 4,728 --
Operating expenses:
Research and
development 12,912 13,923 54,054 36,821
Sales and
marketing 4,924 1,993 12,717 5,601
General and
administrative 1,612 735 4,772 3,041
Total operating
expenses 19,448 16,651 71,543 45,463
Pro forma loss from
operations (16,357) (16,651) (66,815) (45,463)
Interest income,
net 3,870 704 8,003 844
Pro forma net loss $ (12,487) $ (15,947) $ (58,812) $ (44,619)
Pro forma basic and
diluted net loss
per share $ (0.26) $ (0.45) $ (1.41) $ (1.47)
Weighted average
common shares
used in computing
pro forma net loss
per share: 48,188,961 35,562,796 41,763,735 30,317,742
Note 1 - The above pro forma statements of operations for the three
and twelve month periods ended December 31, 2000 and December 31,
1999, are not presented in accordance with generally accepted
accounting principles as they exclude certain non-cash charges related
to equity issuances and purchased in-process research and development
expense as follows (in thousands):
Three months ended Twelve months ended
December 31, December 31,
2000 1999 2000 1999
Non-cash warrant
discount $ 816 $ -- $ 816 $ --
Non-cash based
stock compensation 5,103 1,200 18,659 3,171
Common stock
warrant expense -- -- 2,400 --
Purchased
in-process
research and
development -- -- 4,000 --
Total $ 5,919 $ 1,200 $ 25,875 $ 3,171
Additionally, the pro forma weighted average number of shares used in
the computation of the pro forma net loss per share for the periods
presented, assumes the inclusion of shares issueable upon the
conversion of redeemable convertible preferred stock for all periods
prior to the Company's initial public offering. Such conversion
occurred in connection with the closing of the Company's initial
public offering on August 2, 2000.
AVICI SYSTEMS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
Three months ended Twelve months ended
December 31, December 31,
2000 1999 2000 1999
(unaudited) (audited)
Revenues $ 8,809 $ -- $ 15,886 $ --
Less - non-cash
charge related to
warrant issuance (816) -- (816) --
Net revenues 7,993 -- 15,070 --
Cost of revenues 5,718 -- 11,158 --
Gross margin 2,275 -- 3,912 --
Operating expenses:
Research and
development (1) 12,912 13,923 54,055 36,821
Sales and
marketing (1) 4,924 1,993 12,717 5,601
General and
administrative(1) 1,612 735 4,770 3,041
Stock-based
compensation 5,103 1,200 18,659 3,171
Common stock
warrant expense -- -- 2,400 --
Purchased
in-process
research and
development -- -- 4,000 --
Total operating
expenses 24,551 17,851 96,601 48,634
Loss from
operations (22,276) (17,851) (92,689) (48,634)
Interest income,
net 3,870 704 8,003 844
Net loss $ (18,406) $ (17,147) $ (84,686) $ (47,790)
Net loss per share:
Basic and diluted $ (.38) $ (4.26) $ (3.69) $ (13.99)
Weighted average
common shares used
in computing net
loss per share:
Basic and diluted 48,188,961 4,029,053 22,938,383 3,416,534
(1) Excludes noncash, stock-based compensation, as follows:
Research and
development $ 3,251 $ 919 $ 12,823 $ 2,374
Sales and
marketing 1,276 253 3,725 636
General and
administrative 576 28 2,111 161
$ 5,103 $ 1,200 $ 18,659 $ 3,171
AVICI SYSTEMS INC
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands )
(audited)
December 31, December 31,
2000 1999
Assets
Cash and marketable securities $ 236,393 $ 47,917
Inventory 14,979 3,633
Accounts receivable 6,341 599
Other current assets 1,665 269
Total current assets 259,378 52,418
Long Term Investments 18,539 ---
Property and equipment, net 23,780 9,085
Other assets 391 336
Total assets $ 302,088 $ 61,839
Liabilities and Shareholders' Equity
Accounts payable and accrued expenses $ 26,879 $ 8,587
Other current liabilities 3,814 2,968
Long term liabilities 3,515 6,390
Shareholders' equity, including in 1999
redeemable convertible preferred stock 267,880 43,894
Total liabilities and
Shareholders' equity $ 302,088 $ 61,839
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| For more information contact: |
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| Inna Vyadro Director of Investor Relations Avici Systems 978-964-2000 ivyadro@avici.com |
Paul Brauneis Chief Finanical Officer Avici Systems 978-964-2000 pbrauneis@avici.com |