Avici Systems Reports Third Quarter 2003 Results
North Billerica, MA, October 22, 2003 -- Avici Systems Inc. (NASDAQ: AVCI), today reported its third quarter results for the period ended September 30, 2003.
Gross revenue for the third quarter ended September 30, 2003 was $10.5 million compared to $7.3 million for the comparable three month period ended September 30, 2002, a 44% increase, and $9.8 million in the preceding June 2003 quarter, a sequential quarterly increase of 7%. Revenue, net of common stock warrant discount, for the September 2003 quarter was $9.6 million, compared to $6.4 million for the same period last year, and $9.0 million in the June 2003 quarter.
GAAP net loss for the third quarter ended September 30, 2003 was $9.1 million, or $0.75 per share compared to a GAAP net loss of $17.9 million, or $1.44 per share in the prior year’s third quarter. GAAP net loss for the 2003 and 2002 third quarter periods includes $1.0 million and $1.8 million, respectively, for non-cash equity based charges, namely common stock warrant discount and stock based compensation and, in the 2002 third quarter, a restructuring charge of $0.9 million principally related to employee severance costs, offset by credits of $0.6 million and $0.8 million, respectively, in the 2003 and 2002 third quarters, resulting from the utilization of certain inventory previously written off. Excluding these charges and credits, non-GAAP net loss and net loss per share for the three months ended September 30, 2003 was $8.7 million, or $0.72 per share compared to $16.0 million, or $1.28 per share in the prior year quarter ended September 30, 2002.
Gross revenue for the nine month period ended September 30, 2003 was $27.9 million, compared with $25.8 million for the nine months ended September 30, 2002. Revenue, net of common stock warrant discount, for those periods was $25.4 million and $23.4 million, respectively.
GAAP net loss for the nine months ended September 30, 2003 was $33.1 million, or $2.70 per share, compared to a GAAP net loss of $50.7 million or $4.07 per share for the same period last year.
Cash, marketable securities and long-term investments totaled $103.9 million at September 30, 2003, a $0.3 million increase over the June 30, 2003 balance.
“We are pleased to have achieved improved financial results this quarter as we drive top line growth for the company while carefully managing expenses," said Steve Kaufman, President and CEO. “Our market momentum continues to grow as a result of new innovations for carriers and broader channel relationships."
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: 701905. 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 |