Avici Systems Reports Third Quarter Results
North Billerica, MA, October 23, 2001 -- Avici Systems (Nasdaq: AVCI), a leading provider of scalable and reliable core routing solutions for the Internet, today reported revenues for its third quarter ended September 30, 2001 of $10.3 million compared to $4.3 million, for the same period last year, an increase of 135%. Pro forma net loss and pro forma net loss per share (excluding special one time charges and non-cash equity related charges) for the three months ended September 30, 2001 were $19.4 million and $0.39 per share, respectively. Cash, securities and long-term investments totaled $180 million at September 30, 2001.
"Avici continues to execute and meet customer needs in the midst of a difficult economic environment," said Steve Kaufman, president and CEO. "This quarter we introduced the SSR™, the industry's first stackable, scalable and rack-mountable OC-192c router. The SSR is ideal for carriers' regional and metro PoPs, and thus gives us access to a much broader addressable market. We can now bring the powerful economic and reliability advantages of our product line to broader range of carriers, such as Intellispace and Sandia."
Including special one time charges and non-cash equity related charges,
net revenues, net loss and net loss per share for the three months ended
September 30, 2001 were
$9.5 million, $41.2 million and $0.83 per share, respectively.
The one time charges for the three months ended September 30, 2001 include provisions totaling $18.3 million for excess inventory and related supplier commitments resulting from the downturn in current market conditions, as well as severance, asset utilization and facility related costs associated with the company's cost reduction initiatives. Non-cash equity based charges for the three months ended September 30, 2001 related to the amortization of deferred compensation, $2.7 million and common stock warrant discount, $0.8 million.
To listen to Avici's live Web cast of second quarter results, or to listen to a replay of the Q3 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 leading
provider of purpose-built carrier-class routing solutions for the Internet.
Avici's family of routers is designed to meet carrier requirements
for the highest scalability, reliability and network availability,
while lowering the total cost of building and operating their networks.
The company's routing systems provide new IP solutions to some of the
world's leading service providers.
For more information, please visit us at www.avici.com.
Avici, TSR and SSR are trademarks of Avici Systems Inc.
This release contains information about Avici's future expectations, plans, and prospects that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. When used in this press release, the word "will", "expected" and other similar expressions are intended to identify such forward looking statements.
Such risks and uncertainties include, but are not limited to, market acceptance of Avici products, services and enhancements, customer purchasing patterns and commitments, development of the market place, product development and enhancement, intensity of competition of other vendors, technological changes and other risks set forth in Avici's filings with the Securities and Exchange Commission.
| 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 Financial Officer Avici Systems 978-964-2000 pbrauneis@avici.com |