Avici Systems Announces Third Quarter Results
North Billerica, MA, October 24, 2002 -- Avici Systems Inc. (NASDAQ: AVCI), the specialist in reliable and scalable routing solutions for the Internet, today reported its third quarter results for the period ended September 30, 2002.
Gross revenue for the third quarter ended September 30, 2002 was $7.3 million compared with $10.3 million in the prior year’s third quarter ended September 30, 2001, a 29% decline. Revenue, net of common stock warrant discount for those periods was $6.4 million and $9.5 million, respectively.
Pro forma net loss and pro forma net loss per share was $16.0 million or $0.32 per share for the quarter ended September 30, 2002, compared to $19.4 million or $0.39 per share in the prior year’s third quarter ended September 30, 2001.
Actual net loss and actual net loss per share for the three months ended September 30, 2002 was $18.4 million, or $0.37 per share and includes non-cash charges for equity issuances of $2.2 million, restructuring charges of $0.9 million offset by a credit resulting from the utilization of $0.7 million of inventory previously considered to be in excess. Restructuring charges include severance related costs associated with the company’s recently announced reduction in force and excess facility costs. Actual net loss and net loss per share in the comparable three month period ended September 30, 2001 was $41.2 million or $0.83 per share and included non-cash charges for equity issuances of $3.5 million, restructuring charges of $1.1 million and a provision for slow moving and obsolete inventory of $17.2 million.
Gross revenue for the nine months ended September 30, 2002 was $25.8 million compared with $47.4 million for the same period last year. Revenue, net of common stock warrant discount for those periods was $23.4 million, and $45.0 million, respectively. Pro forma net loss and pro forma net loss per share for the first nine months of 2002 was $46.7 million or $0.94 per share compared to $42.7 million or $0.87 per share for the same nine month period in 2001. Actual net loss and actual net loss per share for the nine months ended September 30, 2002 was $52.4 million or $1.05 per share compared to $74.3 million or $1.51 per share for the same nine months period in 2001.
Cash, marketable securities and long-term investments totaled $133.7 million at September 30, 2002.
"Despite tough carrier market conditions, this quarter we continued to broaden our customer base and widen our market opportunity. Exemplifying this are our two new SSR deployments at Qwest and Global Naps for peering and aggregation applications,” said Steve Kaufman, President and CEO.
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: |
||
| 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 |