Avici Systems Announces First Quarter Results
Revenues Up 78% Over Preceding Quarter
North Billerica, MA, April 19, 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 first quarter ended March 31, 2001 of $15,711,000 and a pro forma net loss (excluding non-cash equity related charges) for the March 2001 quarter of $11,827,000 or a pro forma net loss per share of $0.24. First quarter revenues increased 78% from the preceding quarter. Cash, securities and investments totaled $214,300,000 at March 31, 2001.
Surya Panditi, Co-Chairman and Chief Executive Officer of Avici said, "We exceeded our revenue expectations for the quarter and I am pleased to report that again AT&T, Qwest and Enron each accounted for over 10% of total revenues." Mr. Panditi continued, "I am also enthused with the progress we made on improving our gross margins and bottom line performance as we continue to move toward profitability."
"In addition to improving our operating performance, Avici expanded its international operations into Asia, an area that promises to be one of the long-term drivers of new network buildout, by opening offices in both Hong Kong and Beijing. We also forged new relationships with Dimension Data and Orchestream to broaden the solutions Avici offers to the service provider market," added Steve Kaufman, President and COO of Avici.
Including non-cash equity related charges, net revenues, net loss and net loss per share for the March 2001 quarter were $14,894,000, $17,149,000 and $0.35 per share, respectively.
"This quarter Avici continued to advance its product technology
as we delivered our
OC-192c interface to the market with the highest level of port density
in the industry." Mr. Panditi concluded, "Today more than ever,
carriers are focused on their bottom line. Avici offers them powerful
economies of scalability to drive down the cost of building and operating
their next-generation networks."
To listen to Avici's live Web cast of first quarter results, or to listen to a replay of the Q1 2001 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 are registered trademarks 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 10-K, 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
March 31,
2001 2000
Gross revenue $ 15,711 $ 504
Cost of revenue 8,976 429
Gross margin 6,735 75
----- ------
Operating expenses:
Research and development 15,107 11,335
Sales and marketing 5,047 1,748
General and administrative 2,308 757
Total operating expenses 22,462 13,840
------ ------
Pro forma loss from operations (15,727) (13,765)
Interest income, net 3,900 277
Pro forma net loss $ (11,827) $ (13,488)
========= =========
Pro forma basic and diluted net
loss per share $ (0.24) $ (0.38)
======= =======
Weighted average common shares used
in computing pro forma net loss
per share: 48,718,040 35,895,487
========== ==========
Note 1 - The above pro forma consolidated statements of operations for
the three month periods ended March 31, 2001 and March 31, 2000, are
not presented in accordance with generally accepted accounting
principles as they exclude certain non-cash charges related to equity
issuances as follows (in thousands):
Three months ended
March 31,
2001 2000
Common stock warrant discount $ 817 $ --
Non-cash based stock compensation 4,505 3,192
Total $ 5,322 $ 3,192
Additionally, the pro forma weighted average number of shares used in
the computation of the pro forma net loss per share for the period
ended March 31, 2000, assumes the inclusion of shares issueable upon
the conversion of redeemable convertible preferred stock 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)
(unaudited)
Three months ended
March 31,
2001 2000
Gross Revenue $ 15,711 $ 504
Less - Common stock warrant
discount (817) --
Net revenue 14,894 504
Cost of revenue 8,976 429
Gross margin 5,918 75
Operating expenses:
Research and development (1) 15,107 11,335
Sales and marketing (1) 5,047 1,748
General and administrative (1) 2,308 757
Stock-based compensation 4,505 3,192
Total operating expenses 26,967 17,032
------ ------
Loss from operations (21,049) (16,957)
Interest income, net 3,900 277
Net loss $ (17,149) $ (16,680)
========= =========
Net loss per share:
Basic and diluted $ (0.35) $ (3.68)
======= =======
Weighted average common shares used in
computing net loss per share:
Basic and diluted 48,718,040 4,536,051
========== =========
(1) Excludes noncash, stock-based
compensation, as follows:
Research and development $ 2,899 $ 2,384
Sales and marketing 1,165 430
General and administrative 441 378
$ 4,505 $ 3,192
AVICI SYSTEMS INC
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands )
March 31, December 31,
2001 2000
(unaudited)
Assets
Cash and marketable securities $ 187,972 $ 233,392
Inventories 17,051 14,979
Trade accounts receivable 22,719 6,341
Other current assets 3,560 1,766
--------- --------
Total current assets 231,302 256,478
Long Term Investments 26,329 21,539
Property and equipment, net 36,267 23,780
Other assets 291 291
--------- --------
Total assets $ 294,189 $ 302,088
========= =========
Liabilities and Stockholders' Equity
Accounts payable and accrued
expenses $ 30,990 $ 26,879
Other current liabilities 4,010 4,259
Long term liabilities 2,259 3,072
Stockholders' equity, including
in 2000 redeemable convertible
preferred stock 256,930 267,878
--------- --------
Total liabilities and
Stockholders' equity $ 294,189 $ 302,088
========= =========
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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 |