Avici Systems Reports Fourth Quarter and Full Year Results
Quarterly and Annual Revenues Increase, Loss Narrows
North Billerica, MA, January 29, 2004 — Avici Systems Inc. (NASDAQ: AVCI), today reported its fourth quarter and full year results for the periods ended December 31, 2003.
Gross revenue for the fourth quarter and full year ended December 31, 2003 was $11.5 million and $39.4 million, respectively, compared to $7.3 million and $33.1 million in the comparable periods ended December 31, 2002, representing an increase of 57.5% compared to the prior year's fourth quarter and an annual increase of 19%. Revenue, net of common stock warrant discount, for the three and twelve month periods ended December 31, 2003 was $11.5 million and $37.0 million, respectively, compared to $6.5 million and $29.9 million for the same periods last year. Common stock warrant discount associated with a previous transaction has been reported as a reduction of gross revenue during the three year period ended September 30, 2003 and was fully amortized at that date.
GAAP net loss for the fourth quarter ended December 31, 2003 was $3.9 million, or $0.32 per share compared to a GAAP net loss of $14.1 million, or $1.13 per share in the prior year fourth quarter. GAAP net loss for the 2003 and 2002 fourth quarters includes $0.1 million and $1.5 million, respectively, for non-cash equity based charges, a credit of $0.5 million in the fourth quarter of 2003 for the utilization of certain inventory previously estimated to be in excess of foreseeable requirements, and other income of $3.0 million related to the expiration of certain customer credits.
GAAP net loss and net loss per share for the year ended December 31, 2003 were $37.0 million, or $3.02 per share compared to $64.8 million, or $5.20 per share for the comparable year ended December 31, 2002. GAAP net loss for the 2003 and 2002 annual periods includes $3.5 million and $7.4 million, respectively for non-cash equity based charges, credits of $1.9 million and $2.5 million, respectively for the utilization of certain inventory previously estimated to be in excess of foreseeable requirements, and in 2003, other income of $3.0 million related to the expiration of certain customer credits, and in 2002, restructuring charges of $0.9 million and a $0.3 million credit from the settlement of an insurance claim.
Non-GAAP net loss (GAAP net loss excluding the above charges and credits) and net loss per share for the three months ended December 31, 2003 and 2002 were $7.3 million, or $0.60 per share compared to $12.6 million, or $1.01 per share, respectively. Non-GAAP net loss and net loss per share for the year ended December 31, 2003 were $38.4 million, or $3.14 per share compared to $59.2 million or $4.76 per share for the prior year ended December 31, 2002.
Cash, marketable securities and long-term marketable securities totaled $96 million at December 31, 2003. Total utilization of these items for 2003 was $29 million, reduced from $39 million in 2002.
"This was a strong quarter for Avici," said Steve Kaufman, president and CEO. "We are pleased with the progress we have made in 2003, broadening our global channels and partnerships, innovating for customers, and improving our financial performance."
Avici will discuss these results in an investor conference call today at 8:30 AM EST. The conference telephone number is 888-273-9885. A replay of the conference call will be available after 1 PM. Replay information will be available at 800-475-6701, access code: 717293. 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.
Avici is a trademark 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: |
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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 |