Accelerated Networks Announces Fourth Quarter and Fiscal 2000 Results.Business Editors MOORPARK, Calif.--(BUSINESS WIRE)--Feb. 1, 2001 Accelerated Networks, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : 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 multi service 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 reported financial results for the three- and twelve-month periods ended December December: see month. 31, 2000. Net revenue for the fourth quarter of 2000 was $8.4 million, an increase of 93% over the $4.3 million reported in the fourth quarter of 1999. 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 net loss for the fourth quarter was $10.2 million, or $0.21 per share, compared to a pro forma net loss of $7.5 million, or $0.19 per share in the fourth quarter of 1999. These numbers exclude the benefit of the reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of previously recognized non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. related to amortization of deferred stock compensation. On a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis, net loss for the fourth quarter of 2000 was $9.5 million, or $0.19 per share. For the year ended December 31, 2000, the Company reported net revenue of $35.9 million, an increase of 324% over $8.5 million reported for fiscal 1999. The Company reported a pro forma net loss of $31.7 in fiscal 2000, or $0.70 per share, versus a pro forma net loss of $21.2 million, or $0.58 per share in fiscal 1999, excluding non-cash charges for amortization of deferred stock compensation, a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. beneficial conversion feature charge and a one-time charge for the issuance of warrants to US West associated with the private placement concurrent with our IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. . Including the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. charges, net loss for fiscal year 2000 was $49.2 million or $1.69 per share. "We have recently seen dramatic changes in our marketplace and felt the effects of tightening capital markets on communications equipment spending," commented Suresh Suresh is a sanskrit word which means "Ruler of gods". It is a synonym for the Hindu God Vishnu(It may be Devendra, sur means heaven eswar means king of the gods. The other meaning of sureshwar means Shiv Shankar The creator of Brahma & Vishnu)] and is a frequently used name for Nihalani, Chief Executive Officer of Accelerated, "Despite these current conditions affecting our market, we continue to strongly believe in the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. fundamentals of 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). packetized services, network convergence and in the economic advantages of offering bundled services in networks. We remain confident that our customers will deploy broadband packetized infrastructure and offer converged services, and believe our products are well-suited for deployment in these next generation networks. "In conjunction with Siemens, we secured a deal with Winstar for $150 million of equipment and services to be provided by Accelerated, PCOM and Siemens for wireless multi-tenant In the Software as a Service (SaaS) software architecture, multi-tenant refers to the ability of the hosting site to support multiple organizations ("tenants") at the same time. Multi-tenancy is a key feature of a true SaaS architecture. unit (or "MTU (1) (Maximum Transmission Unit, Maximum Transfer Unit) The largest frame size that can be transmitted over the network. For example, an Ethernet MTU is 1,500 bytes. Messages longer than the MTU must be divided into smaller frames. ") applications. Accelerated's GR-303 gateway will be located in the Point Of Presence (or "POP"), MTU broadband concentrator in the basement This article is about the section of a building. For the foundation, see Basement rock. A basement is one or more floors of a building that are either completely or partially below the ground floor. Slab-on-grade buildings do not have basements. of building, and family of 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). (or "IADs") at the customer premises for the bulk of Winstar's advanced service network. This is a substantial long-term win and a vote of confidence in our technical abilities and product features. Winstar is a leader in the MTU market and this win clearly establishes Accelerated in the new emerging MTU marketplace. Highlights for fiscal year 2000 include: -- Reported total revenue of $35.9 million in 2000, which represents an increase of 324% over 1999 -- Continued investment in research and development activities and expanded facilities in India, Pittsburgh, PA and doubled engineering capabilities in Richardson, TX -- Significantly expanded carrier class testing facility which emulates customer network environment o Increased headcount from 174 at year-end 1999 to 270 at year-end 2000 -- Expanded OEM relationship with Siemens to include international as well as domestic markets. Siemens and Accelerated are jointly working on several opportunities and recently closed one large opportunity with Winstar -- Established a reseller relationship with Solunet in order to leverage their strong US footprint and provide value added services to emerging service providers -- AN-32 IAD was awarded 2000 Internet Telephony product of the year award for innovative way of filling the gap between the T1 and higher priced DS3 lines -- Obtained ISO 9001 certification -- Accelerated's equipment is now deployed or planned for deployment in several large packetized networks. These include Lightyear, in several metropolitan areas nationwide; CTC, in several states in the northeast; and Winstar, which is planned for 30 metropolitan areas throughout the US Note: The Accelerated Networks conference call will be broadcast live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the on Thursday Thursday: see week. , February February: see month. 1, 2001 at 1:45 p.m. Pacific Time. To access the conference call live, please visit www.acceleratednetworks.com. A replay of the conference call will also be available via the Company's website beginning at 5:00 p.m. pacific time on Thursday, February 1, 2001. Portions of this press release contain forward-looking statement 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, 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, in particular the Company's quarterly report on Form 10Q filed on November November: see month. 14, 2000 and the Registration Statement on Form S-1, filed in connection with the Company's initial public offering. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in any forward-looking statements About Accelerated Networks Accelerated Networks, headquartered in Moorpark, California Moorpark is a city of 32,978 people, in Southern California. It was founded in 1887 by Robert Poindexter, presumably after the moorpark apricots that grew in the area. The city has experienced a great amount of growth since the late 1970s, but it still has a "Small-Town feel" to , is a market leader in 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 (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 (IADs). For additional information, please visit www.acceleratednetworks.com.
ACCELERATED NETWORKS, INC.
SELECTED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Year Ended
December 31, (unaudited) December 31,
2000 1999 2000 1999
-------- -------- -------- --------
Net revenue $ 8,387 $ 4,338 $ 35,876 $ 8,466
Cost of revenue 6,797 2,667 25,381 6,312
-------- -------- -------- --------
Gross profit 1,590 1,671 10,495 2,154
Operating expenses:
Research and
product development 6,142 4,114 21,536 12,061
Sales and
marketing (A) 5,321 2,937 20,894 7,500
General and
administrative 1,650 476 4,958 1,747
Amortization of
deferred compensation (780) 1,796 6,240 3,103
-------- -------- -------- --------
Total operating
expenses 12,333 9,323 53,628 24,411
-------- -------- -------- --------
Loss from operations (10,743) (7,652) (43,133) (22,257)
Interest and other
income, net of
interest and other
expenses 1,279 139 3,770 1,031
-------- -------- -------- --------
Loss before
provision for
income taxes (9,464) (7,513) (39,363) (21,226)
Provision for
income taxes -- 1 1 1
-------- -------- -------- --------
Net loss (9,464) (7,514) (39,364) (21,227)
Beneficial
conversion feature -- -- (9,882) --
-------- -------- -------- --------
Net loss applicable
to common stockholders $ (9,464) $ (7,514) $(49,246) $(21,227)
======== ======== ======== ========
Basic and diluted
net loss per share
applicable to common
stockholders $ (0.19) $ (1.05) $ (1.69) $ (3.29)
======== ======== ======== ========
Shares used to
compute basic and
diluted net loss
per share
applicable to
common stockholders 49,013 7,177 29,106 6,447
======== ======== ======== ========
Pro forma information:
Pro forma net
loss (A)(B) $(10,244) $ (7,514) $(31,739) $(21,227)
======== ======== ======== ========
Pro forma basic and
diluted net loss
per share (A)(B)(C) $ (0.21) $ (0.19) $ (0.70) $ (0.58)
======== ======== ======== ========
Shares used in computing
pro forma basic and
diluted net loss
per share (C) 49,013 38,828 45,490 36,789
======== ======== ======== ========
(A) Included in Sales and marketing expense for year ended December
31, 2000 is a $1,385,000 one-time charge for a two-year warrant
issued to US West. Proforma basic and diluted net loss and net
loss per share applicable to common stockholders excludes the
effect of this charge.
(B) Pro forma basic and diluted net loss and net loss per share
applicable to common stockholders excludes the effect of the
amortization of deferred stock compensation and a one-time
beneficial conversion feature charge.
(C) Pro Forma basic and diluted net loss per share assumes conversion
of the Company's preferred stock 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 period or the
date of issuance, if later.
ACCELERATED NETWORKS, INC.
SELECTED CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
December 31, December 31,
2000 1999
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 62,194 $ 15,207
Short Term Investments 7,913 --
Accounts receivable, net 17,087 4,381
Inventories, net 9,807 3,811
Prepaids and other current assets 1,570 296
-------- --------
Total current assets 98,571 23,695
Net property and equipment 10,164 4,840
Other assets 199 143
-------- --------
Total assets $108,934 $ 28,678
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable and
accrued liabilities $ 11,709 $ 4,323
Debt, current 97 912
Deferred revenues 2,172 219
-------- --------
Total current liabilities 13,978 5,454
Debt, less current portion 168 1,932
Redeemable convertible
preferred stock -- 49,857
Stockholders' equity (deficit) 94,788 (28,565)
-------- --------
Total liabilities and
stockholders' equity $108,934 $ 28,678
======== ========
|
|
Printer friendly
Cite/link
Email
Feedback
Reader Opinion