Avici Systems Reports Fourth Quarter and Full Year 2005 Results
North Billerica, MA, February 16, 2006 —Avici Systems Inc. (NASDAQ: AVCI), today reported results for its fourth quarter and year ended December 31, 2005.
Gross revenue for the fourth quarter and year ended December 31, 2005 was $6.1 million and $37.2 million, respectively, compared to $3.8 million and $26.6 million, respectively, for the three and twelve-month periods ended December 31, 2004. Revenue, net of common stock warrant discount, for the three and twelve-month periods ended December 31, 2005 was $5.6 million and $35.1 million, respectively, compared to $3.3 million and $24.5 million in the comparable 2004 three and twelve-month periods.
GAAP net loss for the fourth quarter ended December 31, 2005 was $8.6 million, or $0.67 per share, compared to a GAAP net loss of $9.7 million, or $0.76 per share, in the prior year's fourth quarter. GAAP net loss in each of the 2005 and 2004 fourth quarter periods includes $0.5 million for non-cash equity based charges for common stock warrant discount.
GAAP net loss for the year ended December 31, 2005 was $24.7 million, or $1.91 per share, compared to a GAAP net loss of $35.4 million, or $2.81 per share, for the year ended December 31, 2004. GAAP net loss for each of the twelve-month periods ended December 31, 2005 and 2004 includes charges of $2.1 million for common stock warrant discount, offset in the 2005 and 2004 twelve-month periods by inventory credits of $0.3 million and $0.8 million, respectively, and in the 2005 twelve-month period by a credit of $1.8 million for the settlement of a claim in bankruptcy. The 2004 twelve-month period also includes a charge of $0.3 million for certain other non-cash stock based compensation.
Non-GAAP net loss (GAAP net loss excluding charges for common stock warrant discount, certain stock based compensation, inventory credits and a credit from settlement of a claim in bankruptcy) and non-GAAP net loss per share for the three- months ended December 31, 2005 and 2004 were $8.1 million, or $0.63 per share, and $9.2 million, or $0.72 per share, respectively. Non-GAAP net loss and non-GAAP net loss per share for the twelve months ended December 31, 2005 was $24.7 million, or $1.91 per share, compared to $33.8 million, or $2.68 per share for the prior year twelve- month period ended December 31, 2004.
Cash, marketable securities and long-term investments totaled $50.2 million at December 31, 2005.
Avici will host a conference call today at 8:30 a.m. EST to provide further details on the reorganization and fourth quarter earnings. To participate via telephone, the dial-in number is 877-209-0397. Please call ten minutes prior to the scheduled conference call time. For live Webcasting, go to the Avici Web site at www.avici.com and access the investor relations section, clicking on either the live Webcast link or the microphone icon to listen.
The conference call will be archived on the Avici Web site. A replay will be accessible by telephone after 1:00 p.m., for approximately 48 hours afterward. To replay the call, dial 800-475-6701 using the access code 817231.
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, the impact of restructuring and realignment, the amount and timing of the occurrence of related charges, risks associated with focusing on a core set of features and functionalities, 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, 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 |