Avici Systems Reports Second Quarter 2003 Results
Revenues Increase 5% year over year, 29% Sequentially; Loss Narrows
North Billerica, MA, July 24, 2003 -- Avici Systems Inc. (NASDAQ: AVCI), today reported its second quarter results for the period ended June 30, 2003.
Gross revenue for the second quarter ended June 30, 2003 was $9.8 million compared to $9.3 million for the comparable three month period ended June 30, 2002, a 5% increase, and $7.6 million in the preceding March 2003 quarter, a sequential quarterly increase of 29%. Revenue, net of common stock warrant discount, for the June 2003 quarter was $9.0 million, compared to $8.5 million for the same period last year, and $6.8 million in the March 2003 quarter.
GAAP net loss for the second quarter ended June 30, 2003 was $11.3 million, or $0.92 per share compared to a GAAP net loss of $15.0 million, or $1.21 per share in the prior year’s second quarter. GAAP net loss for the 2003 and 2002 second quarter periods includes $1.1 million and $1.9 million, respectively, for non-cash equity based charges, namely common stock warrant discount and stock based compensation, offset by credits of $0.8 million and $1.7 million, respectively, in the 2003 and 2002 second quarters, resulting from the utilization of certain inventory previously written off.
Gross revenue for the six months period ended June 30, 2003 was $17.4 million, compared with $18.6 million for the six months ended June 30, 2002. Revenue, net of common stock warrant discount, for those periods was $15.8 million and $16.9 million, respectively.
GAAP net loss for the six months ended June 30, 2003 was $24.0 million, or $1.95 per share, compared to a GAAP net loss of $32.7 million or $2.63 per share for the same period last year.
Cash, marketable securities and long-term investments totaled $103.5 million at June 30, 2003.
“We are pleased with our revenue growth and our bottom line improvements this quarter,” said Steve Kaufman, President and CEO. “We continued to execute on broadening our product line and our channel relationships to fuel future growth.”
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 800-450-0819. A replay of the conference call will be available after 1 PM. Replay information will be available at 800-475-6701, access code: 691453. 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 |