Avici Systems Reports First Quarter 2004 Results
North Billerica, MA, April 22, 2004 — Avici Systems Inc. (NASDAQ: AVCI), today reported its first quarter results for the three months ended March 31, 2004.
Gross revenue for the first quarter ended March 31, 2004 was $7.0 million compared to $7.6 million for the comparable three month period ended March 31, 2003. Revenue, net of common stock warrant discount, for the March 2004 quarter was $6.4 million, compared to $6.8 million for the same period last year.
GAAP net loss for the first quarter ended March 31, 2004 was $9.1 million, or $0.73 per share, compared to a GAAP net loss of $12.7 million, or $1.03 per share, in the prior year's first quarter. GAAP net loss for the 2004 and 2003 first quarter periods includes $0.7 million and $1.3 million, respectively, for non-cash equity based charges, namely common stock warrant discount and stock based compensation and, in the 2004 first quarter, a credit of $0.2 million resulting from the further utilization of certain inventory previously considered excess.
Excluding these charges and credits, non-GAAP net loss and net loss per share for the three months ended March 31, 2004 was $8.6 million, or $0.69 per share, compared to a net loss of $11.4 million, or $0.93 per share, in the prior year quarter ended March 31, 2003.
Cash, marketable securities and long-term investments totaled $94 million at March 31, 2004.
"Despite the shortfall in first quarter revenue, we saw year-over-year improvement in our cash flow and net loss due to prudent expense management, " said Steve Kaufman, President and CEO. "Our channel strategy is starting to payoff globally with new customer wins. Avici's new business pipeline is also growing as carriers seek to upgrade their networks with more reliable, scalable and economical core routers."
Avici will discuss these quarterly results as well as future business and financial expectations in an investor conference call today at 8:30 AM eastern daylight savings time. The conference telephone number is 888-423-3280. A replay of the conference call will be available after 1 PM. Replay information will be available at 800-745-6701, access code: 728285. 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 |