Avici Systems Reports First Quarter 2003 Results
Focus on Cost Yields Year Over Year Improvement
North Billerica, MA, April 24, 2003 -- Avici Systems Inc. (NASDAQ: AVCI), today reported its first quarter results for the three month period ended March 31, 2003.
Gross revenue for the first quarter ended March 31, 2003 was $7.6 million compared to $9.2 million for the comparable three month period ended March 31, 2002. Revenue, net of common stock warrant discount, for the March 2003 quarter was $6.8 million, compared to $8.4 million for the same period last year.
GAAP net loss for the first quarter ended March 31, 2003 was $12.7 million, or $1.03 per share compared to a GAAP net loss of $17.7 million, or $1.42 per share in the prior year’s first quarter. GAAP net loss for the 2003 and 2002 first quarter periods includes $1.3 million and $2.2 million, respectively, for non-cash equity based charges, namely common stock warrant discount and stock based compensation.
Cash, marketable securities and long-term investments totaled $112.7 million at March 31, 2003.
All share and per share data for the three months ended March 31, 2002 has been restated to give effect to a one for four reverse stock split which became effective on November 8, 2002.
“This quarter we expanded our channel relationships by adding multiple international partners to sell and support our products,” said Steve Kaufman, President and CEO. “We also demonstrated significant improvements in year-over-year operating costs and gross margin percentage through our sustained focus on improving our bottom line.”
Avici will discuss these quarterly results in an investor conference call today at 8:30 AM eastern daylight savings time. The conference telephone number is 888-273-9889. A replay of the conference call will be available after 1 PM. Replay information will be available at 800-745-6701, access code: 682136. Replay of this call is also available on Avici’s Web site, www.avici.com, along with a copy of this release.
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.
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 |