Avici Systems Reports First Quarter 2005 Results
North Billerica, MA, April 21, 2005 — Avici Systems Inc. (NASDAQ: AVCI), today reported its first quarter results for the three months ended March 31, 2005.
Gross revenue for the first quarter ended March 31, 2005 was $10.7 million compared to $7.0 million for the comparable three-month period ended March 31, 2004 and $3.8 million in the preceding quarter ended December 31, 2004. Revenue, net of common stock warrant discount, for the March 2005 quarter was $10.2 million, compared to $6.4 million for the three months ended March 31, 2004 and $3.3 million in the December 2004 quarter.
GAAP net loss for the first quarter ended March 31, 2005 was $5.6 million, or $0.44 per share, compared to a GAAP net loss of $9.1 million, or $0.73 per share, in the prior year's first quarter. GAAP net loss for the three months ended March 31, 2005 includes $0.5 million for a non-cash equity based charge, namely common stock warrant discount, less a credit of $0.2 million resulting from the utilization of certain inventory previously considered excess. This compares to a charge of $0.7 million in the prior year's first quarter ended March 31, 2004 for common stock warrant discount and certain other non-cash equity based compensation, less a credit of $0.2 million for inventory utilization.
Excluding these charges and credits, non-GAAP net loss and net loss per share for the three months ended March 31, 2005 was $5.2 million, or $0.41 per share, compared to a non-GAAP net loss of $8.6 million, or $0.69 per share, in the prior year quarter ended March 31, 2004.
Cash, marketable securities and long-term investments totaled $65.7 million at March 31, 2005.
"Avici had a solid first quarter," said Bill Leighton, Chief Executive Officer. "After two consecutive disappointing revenue quarters, gross revenue returned to a double digit level, gross margin was strong and our non-GAAP net loss and net loss per share were the lowest in company history while we continued to manage our expenses and utilize our cash prudently."
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 (800) 762-6067. A replay of the conference call will be available after 11:15 AM. Replay information will be available at (800) 475-6701 (USA) and (320) 365-3844 (International), access code: 778194. 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, reliance on distribution partners, risks associated with international expansion, 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 |