Avici Systems Reports Fourth Quarter and Full Year Results
Reduction in Quarterly Loss
North Billerica, MA, January 30, 2003 -- Avici Systems Inc. (NASDAQ: AVCI), the specialist in reliable and scalable routing solutions for the Internet, today reported its fourth quarter and full year results for the periods ended December 31, 2002.
Gross revenue for the fourth quarter and full year ended December 31, 2002 was $7.3 million and $33.1 million, respectively, compared to $9.2 million and $56.6 million in the comparable periods ended December 31, 2001. Revenue, net of common stock warrant discount, for the three and twelve month periods ended December 31, 2002 was $6.5 million and $29.9 million, respectively, compared to $8.4 million and $53.4 million for the same periods last year.
Net loss for the fourth quarter ended December 31, 2002 was $14.3 million, or $1.15 per share compared to a net loss of $21.2 million, or $1.71 per share in the prior year fourth quarter. Net loss for the 2002 and 2001 fourth quarters includes $1.7 million and $5.0 million, respectively, for non-cash equity expenses and in the 2001 period, a restructuring credit of $0.1 million.
Net loss and net loss per share for the fourth quarters of 2002 and 2001 before these charges and credit were $12.6 million, or $1.01 per share compared to $16.3 million, or $1.31 per share, respectively.
Cash, securities and long-term investments totaled $125.1 million at December 31, 2002.
For the full year ended December 31, 2002, net loss and net loss per share were $66.7 million, or $5.35 per share compared to $95.5 million, or $7.75 per share for the year ended December 31, 2001. Net loss for the 2002 annual period includes restructuring and non-cash equity issuance charges of $10.2 million, or $0.82 per share, offset by credits of $2.8 million, or $0.22 per share, primarily for utilization of previously written down inventory.
All per share data has been restated to give effect to a one for four reverse stock split which became effective on November 12, 2002.
“This quarter we continued to execute on innovation by delivering a new generation of technology for the industry's most scalable and reliable routers. Our improving bottom-line results stem from continued cost controls in the midst of a challenging market,” 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, timely 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 |