Avici Systems Announces Second Quarter Results
North Billerica, MA, July 24, 2002 -- Avici Systems Inc. (NASDAQ: AVCI), the specialist in reliable and scalable routing solutions for the Internet, today reported its second quarter results for the period ended June 30, 2002.
Gross revenue for the second quarter ended 2002 was $9.3 million compared with $9.2 million in the previous quarter and $21.4 million in the prior year’s second quarter ended June 30, 2001, a 56.5% decline. Revenue, net of common stock warrant discount for those periods was $8.5 million, $8.4 million and $20.6 million, respectively.
Pro forma net loss and pro forma net loss per share was $15.1 million or $0.30 per share for the quarter ended June 30, 2002, compared to $11.5 million or $0.23 per share in the prior year’s second quarter ended June 30, 2001.
Actual net loss and actual net loss per share which includes non-cash charges related to equity issuances, and in the second quarter of 2002, credits resulting from the utilization of inventory previously considered to be in excess, and a gain on the settlement of an insurance claim was $15.5 million or $0.31 per share for the quarter ended June 30, 2002 compared to $15.9 million or $0.32 per share, in the 2001 comparable period.
Gross revenue for the six months ended June 30, 2002 was $18.6 million compared with $37.1 million for the same period last year. Revenue, net of common stock warrant discount for those periods was $16.9 million, and $35.5 million, respectively. Pro forma net loss and pro forma net loss per share for the first six months of 2002 was $30.6 million or $0.62 per share compared to $23.3 million or $0.48 per share for the same six month period in 2001. Actual net loss and actual net loss per share for the six months ended June 30, 2002 was $34.0 million or $0.68 per share compared to $33.1 million or $0.68 per share for the same six month period in 2001.
Cash, marketable securities and long-term investments totaled $138.5 million at June 30, 2002.
"During this turbulent time in the telecommunications industry, Avici continues to execute on product innovation for our customers", said Steve Kaufman, President and CEO. "This quarter we introduced new NSR® (non-stop routing) technology to help carriers improve the profitability of their IP networks.”
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 |