Accelerated Networks, Inc. Files Annual Report on Form 10-K; Company Reports Revised 2000 Financial Results.Business Editors MOORPARK, Calif.--(BUSINESS WIRE)--May 8, 2001 Accelerated Networks, Inc. (Nasdaq:ACCL ACCL American Canadian Caribbean Line ACCL Acceleration ACCL American College of Construction Lawyers ACCL Accreditation Council for Clinical Lipidology (Allied Health Certification Program) ACCL Amway China Co Limited ), a leading developer of multiservice broadband access See broadband and wireless broadband. solutions for communications service providers A Communications Service Provider or CSP is a company that transports information electronically. The term encompasses public and private companies in the wireline, wireless, Internet, cable, satellite, and managed services businesses. , today announced that the audit of fiscal year 2000 has been completed and the Company has filed its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. quarterly Reports on Form 10-Q/A for the six and nine month periods ended June June: see month. 30 and September September: see month. 30, 2000, respectively, with the Securities and Exchange Commission. As previously disclosed on April 17, 2001, the Company determined that revenue from sales to one customer recorded in the second quarter of 2000 should be deferred to future periods. This resulted in a revenue deferral deferral - Waiting for quiet on the Ethernet. of approximately $1.3 million and an increased net loss in the second quarter of approximately $750,000. Revenue on this and all subsequent sales to this customer will be recognized on a sell-through basis, including recognition of approximately $300,000 sold through in the fourth quarter. Upon identifying this transaction, these and other sales were investigated before the Company was able to finalize fi·nal·ize tr.v. fi·nal·ized, fi·nal·iz·ing, fi·nal·iz·es To put into final form; complete or conclude: "They have jointly agreed ... the fiscal year 2000 financials. No other material adjustments were necessary as a result of the inquiry. "We thank our investors for their patience while we took the necessary time to fully review our financials for fiscal 2000," said Gary J. Sbona, chairman and chief executive officer. "This process is now completed and we look forward to quickly reporting our first quarter results." In addition, due to the global economic downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. impacting telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. equipment spending and the additional visibility gained over the past two months, the Company has revised its previously announced unaudited fourth quarter results. The revised results reflect an increase in cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold related to a charge for expected losses on surplus inventories, and a decrease in revenue related to a sales concession and an additional stock rotation Stock rotation is the practise, used in retail and especially in food stores such as supermarkets, of moving products with an earlier sell-by date to the front of a shelf (or in the cooler if the item is on repack so they get worked out before the new product), so they get picked up and right. Previously, the Company had recorded part of this sales concession as a research and development expense; accordingly, this adjustment decreased previously reported operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . As disclosed on April 24, 2001, the Company received a Nasdaq Staff Determination that, pursuant to Marketplace Rule 4310(c)(14), its common stock is subject to delisting Delisting When the stock of a company is removed from a stock exchange. Notes: Reasons for delisting include violating regulations and/or failure to meet financial specifications set out by the stock exchange. from The Nasdaq National Market because the Company has delayed the filing of its Form 10-K for the period ended December 31, 2000. A hearing is currently scheduled for May 10, 2001 before the Nasdaq Listing Qualifications Panel regarding the Company's stock listing status. About Accelerated Networks, Inc. Accelerated Networks, headquartered in Moorpark, designs and develops multiservice broadband access (MSBA MSBA Maryland State Bar Association MSBA Minnesota State Bar Association MSBA Missouri School Boards' Association MSBA Minnesota School Boards Association MSBA Master of Science in Business Administration MSBA Microsoft Security Baseline Analyzer ) products that enable telecommunications service providers A Telecommunications Service Provider or TSP is a type of Communications Service Provider that has traditionally provided telephone and similar services. This category includes ILECs, CLECs, and mobile wireless companies. to bundle voice and data services over a single broadband access network. These products are designed to allow service providers to efficiently and cost-effectively deliver and manage secure multiservice broadband access services using DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary , T1/E1, NxT1/E1, or DS3/OC-3 technologies. Accelerated's products also allow service providers to leverage emerging technologies such as voice over broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). (VoB) and frame relay A high-speed packet switching protocol used in wide area networks (WANs). Providing a granular service of up to DS3 speed (45 Mbps), it has become popular for LAN to LAN connections across remote distances, and services are offered by most major carriers. over DSL (FRoDSL) over a single broadband access network. Accelerated Networks offers all of the components of a complete multiservice broadband access solution: carrier-class voice gateways, central office and multi-tenant unit concentrators, and a broad range of customer premises integrated access devices An IAD is a customer premises device that provides access to wide area networks and the Internet. Specifically, it aggregates multiple channels of information including voice and data across a single shared access link to a carrier or service provider PoP (Point of Presence). (IADs). For additional information, please visit www.acceleratednetworks.com. Portions of this press release contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. regarding future events or the future performance of the Company. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from any future performance suggested in such statements. These factors include, but are not limited to, the potential delisting of our common stock from The Nasdaq National Market, the ability of our recently appointed officers, including our CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and CFO See Chief Financial Officer. , to quickly integrate with and manage the Company's personnel and business, general market conditions affecting communications service providers purchase of equipment, in particular, DSL-related equipment, changes in service providers' business models, the rate our customers deploy their networks, our customers' ability to secure financing, the timing of order and shipments of products, mix of products sold, changes in the prices of our components, ability to maintain production volumes and secure key components, and our ability to develop new products to meet market demand. The Company undertakes no obligation to publicly update any forward-looking statements whether or as a result of new information, future events or otherwise. Please refer to the Company's periodic filings with the SEC which contain and identify other important factors that could cause actual results to differ materially from those contained in any forward-looking statements.
TABLES TO FOLLOW
ACCELERATED NETWORKS, INC
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
December 31, 2000
---------------------------
As Previously As Reported
Reported (Audited)
------------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 62,194 $ 62,194
Short term investments 7,913 7,913
Accounts receivable, net 17,087 16,637
Inventories, net 9,807 5,267
Prepaid and other current assets 1,570 1,569
----------- -----------
Total current assets 98,571 93,580
Property & equipment, net 10,164 10,164
Other assets 199 199
----------- -----------
Total assets $ 108,934 $ 103,943
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 11,709 $ 14,924
Debt, less current portion 97 97
Deferred revenues 2,172 3,370
----------- -----------
Total current liabilities 13,978 18,391
Debt, less current portion 168 168
Stockholders' equity 94,788 85,384
----------- -----------
Total liabilities and stockholders' equity $ 108,934 $ 103,943
=========== ===========
ACCELERATED NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, 2000 December 31, 2000
------------------- -------------------
As As As
Previously As Previously Reported
Released Reported Released (Audited)
-------- -------- -------- --------
Net revenue $ 8,387 $ 8,046 $ 35,876 $ 34,228
Cost of revenue 6,797 15,314 25,597 33,552
-------- -------- -------- --------
Gross profit 1,590 (7,268) 10,279 676
Operating expenses:
Research & product
development 6,142 5,942 23,806 23,606
Sales & marketing 5,321 5,321 23,084 23,084
General & administrative 1,650 1,650 6,522 6,522
Amortization of deferred
compensation (780) (780) (a) (a)
-------- -------- -------- --------
Total operating expenses 12,333 12,133 53,412 53,212
-------- -------- -------- --------
Loss from operations (10,743) (19,401) (43,133) (52,536)
Interest and other
income, net 1,279 1,279 3,770 3,770
-------- -------- -------- --------
Loss before provision
for income taxes (9,464) (18,122) (39,363) (48,766)
Provision for income
taxes -- -- 1 1
-------- -------- -------- --------
Net loss (9,464) (18,122) (39,364) (48,767)
Beneficial conversion
feature -- (9,882) (9,882)
-------- -------- -------- --------
Net loss applicable to
common stockholders $ (9,464) $(18,122) $(49,246) $(58,649)
======== ======== ======== ========
Basic and diluted net
loss per share
applicable to common
stockholders $ (0.19) $ (0.37) $ (1.69) $ (2.02)
======== ======== ======== ========
Shares used to compute
basic and diluted net
loss per share
applicable to common
stockholders 49,013 49,013 29,106 29,106
======== ======== ======== ========
(a) Annual numbers reflect allocation of $6,240 in deferred
compensation, consistent with Form 10-K, as follows: $216 to Cost
of revenue, $2,270 to Research & product development, $2,190 to
Sales & marketing, and $1,564 to General & administrative.
Pro forma information
(unaudited):
Pro forma net loss
(a)(b) $(10,244) $(18,902) $(31,739) $(41,142)
======== ======== ======== ========
Pro forma basic and
diluted net loss per
share (a)(b)(c) $ (0.21) $ (0.39) $ (0.70) $ (0.90)
======== ======== ======== ========
Shares used in
computing pro forma
basic and diluted net
loss per share (c) 49,013 49,013 45,490 45,490
======== ======== ======== ========
(a) Included in sales and marketing expense for the year ended December 31, 2000 is a $1,385,000 one-time charge for a two-year warrant issued to US West. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. net loss per share excludes the effects of this charge. (b) Pro forma basic and diluted net loss per share excludes the effect of the amortization of deferred stock compensation and a one-time beneficial conversion feature. (c) Pro forma basic and diluted net loss per share assumes conversion of the Company's preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. which converted to common stock upon the closing of the Company's initial public offering as if the conversion occurred as of the beginning of the year, or date of issuance, if later. |
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