Avici Systems Announces Preliminary Third Quarter Results
North Billerica, MA, October 3, 2002 -- Avici Systems Inc. (NASDAQ: AVCI), the specialist in reliable and scalable routing solutions for the Internet, today announced that it expects gross revenue for its third quarter ended September 30, 2002 to be approximately $7.0 million and anticipates a pro forma net loss per share of $0.32 to $0.34. GAAP net loss per share is expected to range from $0.37 to $0.39.
Cash usage for the three months ended September 30, 2002 was $5.5 million.
Pro forma results exclude net third quarter charges approximating $0.05 per share for severance and estimated facility costs associated with the company’s recently announced cost reduction actions, non-cash charges and credits related to equity issuances and credits resulting from the utilization of inventory previously considered to be in excess.
Steve Kaufman, president and CEO of Avici said, “Market conditions for carrier equipment sales remain challenging. Despite this environment, we made good progress this quarter on expanding our deployed customer base, realigning our cost structure and managing our cash flow.”
Avici will host a conference call to discuss both this announcement as well as Qwest’s deployment of Avici’s SSR, which was disclosed in a separate release today. The call will begin at 8:30 a.m. Eastern Time today and will be broadcast live over the Internet.
To participate via telephone, the dial-in number is 800-230-1085. Please call ten minutes prior to the scheduled conference call time. For live Webcasting, go to the Avici Web site at www.avici.com and access the investor relations section, clicking on either the live Webcast link or the microphone icon to listen.
The conference call will be archived on the Avici Web site. A replay will be accessible by telephone after 1:00 p.m., for approximately 48 hours afterward. To replay the call dial 800-475-6701 using the access code 655073.
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, including its results for the third quarter ended September 30, 2002, 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 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 |