Avici Systems Reports Second Quarter 2004 Results
Revenues Increase 23% year over year, 74% Sequentially; Loss Narrows
North Billerica, MA, July 22, 2004 — Avici Systems Inc. (NASDAQ: AVCI), today reported its second quarter results for the period ended June 30, 2004.
Gross revenue for the second quarter ended June 30, 2004 was $12.1 million compared to $9.8 million for the comparable three month period ended June 30, 2003, a 23% increase, and $7.0 million in the preceding March 2004 quarter, a sequential quarterly increase of 74%. Revenue, net of common stock warrant discount, for the June 2004 quarter was $11.6 million, compared to $9.0 million for the same period last year, and $6.4 million in the March 2004 quarter.
GAAP net loss for the second quarter ended June 30, 2004 was $6.3 million,
or $0.50 per share compared to a GAAP net loss of $11.3 million, or $0.92
per share in the prior year's second quarter. GAAP net loss for the 2004
and 2003 second quarter periods includes $0.6 million and $1.1 million,
respectively, for non-cash equity based charges, namely common stock
warrant discount and stock based compensation, offset by credits of $0.5
million and $0.8 million, respectively, in the 2004 and 2003 second quarters,
resulting from the utilization of certain inventory previously written
off.
Gross revenue for the six month period ended June 30, 2004 was $19.1
million, compared with $17.4 million for the six months ended June 30,
2003, a 9% increase. Revenue, net of common stock warrant discount, for
those periods was $18.0 million and $15.8 million, respectively, an increase
of 14%.
GAAP net loss for the six months ended June 30, 2004 was $15.3 million, or $1.22 per share, compared to a GAAP net loss of $24.0 million or $1.95 per share for the same period last year.
Non-GAAP net loss (GAAP net loss excluding the above charges and credits) and net loss per share for the three months ended June 30, 2004 and 2003 were $6.2 million, or $0.49 per share compared to $11.0 million, or $0.90 per share, respectively. Non-GAAP net loss and net loss per share for the six months ended June 30, 2004 were $14.8 million, or $1.18 per share compared to $22.4 million, or $1.82 per share for the prior year six month period ended June 30, 2003.
Cash, marketable securities and long-term investments totaled $84.9 million at June 30, 2004.
"This quarter we saw good improvements on both our top and bottom line results," said Steve Kaufman, President and CEO. "We are pleased with how our channels are ramping to produce significant revenue contributions and a strengthening sales pipeline of opportunities."
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) 273-9890. A replay of the conference call will be available after 1 PM. Replay information will be available at (800) 475-6701, access code: 737856. 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 |