Avici Systems Announces Second Quarter Results
Record Revenues Up 36% Over Preceding Quarter
North Billerica, MA, July 20, 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 second quarter ended June 30, 2001 of $21,414,000 and a pro forma net loss (excluding non-cash equity related charges) for the June 2001 quarter of $11,462,000 or a pro forma net loss per share of $0.23. Second quarter revenues increased 36% from the preceding quarter and 872% over the prior year's second quarter. Cash, securities and long term investments remained a strong $200,633,000 at June 30, 2001.
Steve Kaufman, president and CEO said, "We are pleased with our continued results through the last several quarters of tightening market conditions. We have executed and gained share in a challenging market. We are focused on expanding our global customer base, as evidenced by our recent win at Chung Hwa Telecom. Additionally, we are pleased to welcome Rick Ford as our new vice president of international sales. Rick's experience as VP of worldwide sales for Ericsson's data backbone and optical networks business will strengthen Avici's momentum in the international market."
Including non-cash equity related charges, net revenues, net loss and net loss per share for the June 2001 quarter were $20,598,000, $15,911,000 and $0.32 per share, respectively.
To listen to Avici's live Web cast of second quarter results, or to listen to a replay of the Q2 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
The TSR and Avici are registered trademarks of Avici Systems Inc. Composite Links is a 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, including the Company's most recently filed Form 10-K and
Form 10-Q 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 Six Months Ended
June 30, June 30,
2001 2000 2001 2000
Gross revenue $21,414 $2,217 $37,125 $2,721
Cost of revenue 11,772 1,874 20,749 2,303
Gross margin 9,642 343 16,376 418
Operating expenses:
Research and
development 15,862 15,709 30,970 27,045
Sales and marketing 5,279 2,564 10,326 4,312
General and
administrative 2,514 978 4,822 1,734
Total operating
expenses 23,655 19,251 46,118 33,091
Pro forma loss
from operations (14,013) (18,908) (29,742) (32,673)
Interest income, net 2,551 671 6,452 948
Pro forma net loss $(11,462) $(18,237) $(23,290) $(31,725)
Pro forma basic
and diluted net
loss per share $(0.23) $(0.48) $(0.48) $(0.86)
Weighted average
common shares used
in computing pro
forma net loss
per share:
49,207,321 38,260,708 48,962,680 37,078,097
Note 1 - The above pro forma consolidated statements of operations for
the three and six month periods ended June 30, 2001 and June 30, 2000,
are not presented in accordance with generally accepted accounting
principles as they exclude certain non-cash charges related to
purchased in-process research and development, and charges for equity
issuances as follows (in thousands):
Three months ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
Common stock
warrant discount $ 816 $ -- $ 1,633 $ --
Non-cash stock
based compensation 3,633 3,721 8,138 6,913
Purchased in-process
research and
development -- 4,000 -- 4,000
Total $ 4,449 $ 7,721 $ 9,771 $10,913
Additionally, the pro forma weighted average number of common shares
used in the computation of the pro forma net loss per share for the
periods ended June 30, 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 Six months ended
June 30, June 30,
2001 2000 2001 2000
Gross Revenue $21,414 $2,217 $37,125 $2,721
Less - Common
stock warrant
discount (816) -- (1,633) --
Net revenue 20,598 2,217 35,492 2,721
Cost of revenue 11,772 1,874 20,749 2,303
Gross margin 8,826 343 14,743 418
Operating expenses:
Research
and development(1) 15,862 15,709 30,970 27,045
Sales and
marketing(1) 5,279 2,564 10,326 4,312
General and
administrative(1) 2,514 978 4,822 1,734
Stock-based
compensation 3,633 3,721 8,138 6,913
Purchased
in-process research
and development -- 4,000 -- 4,000
Total operating
expenses 27,288 26,972 54,256 44,004
Loss from operations (18,462) (26,629) (39,513) (43,586)
Interest income, net 2,551 671 6,452 948
Net loss $(15,911) $(25,958) $(33,061) $(42,638)
Net loss per share:
Basic and diluted $(0.32) $(5.11) $(0.68) $(8.86)
Weighted average common
shares used in
computing net
loss per share:
Basic and diluted 49,207,321 5,084,077 48,962,680 4,810,064
(1) Excludes noncash,
stock-based compensation,
as follows:
Research and development $2,328 $3,045 $5,227 $5,429
Sales and marketing 997 473 2,162 903
General and administrative 308 203 749 581
$3,633 $3,721 $8,138 $6,913
AVICI SYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, December 31,
2001 2000
(unaudited)
Assets
Cash and marketable securities $167,232 $233,392
Inventories 16,891 14,979
Trade accounts receivable 8,407 6,341
Other current assets 3,348 1,766
Total current assets 195,878 256,478
Long Term Investments 33,401 21,539
Property and equipment, net 40,093 23,780
Other assets 291 291
Total assets $269,663 $302,088
Liabilities and Stockholders' Equity
Accounts payable and accrued expenses $ 15,877 $ 26,879
Other current liabilities 3,692 4,259
Long term liabilities 1,491 3,072
Stockholders' equity 248,603 267,878
Total liabilities and
Stockholders' equity $269,663 $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 |