Accelerated Networks Reports Fourth Quarter and Full Year Results.Business Editors MOORPARK, Calif.--(BUSINESS WIRE)--March 20, 2002 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 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 reported financial results for the three- and twelve-month periods ended December December: see month. 31, 2001. Net revenue for the fourth quarter of 2001 was $535,000, a decrease of 93% from the $8.0 million reported in the same period a year ago. The Company reported a net loss of $10.0 million, or $0.20 per share, for the fourth quarter of 2001 as compared with a net loss of $18.1 million, or $0.37 per share, for the fourth quarter 2000. For the twelve-month period ended December 31, 2001, the Company reported net revenue of $3.2 million, a decrease of 91% from $34.2 million reported in the same period of 2000. Net loss for the twelve -month period ended December 31, 2001 was $49.0 million, or $0.98 per share, as compared with a net loss of $48.8 million, or $2.02 per share in 2000, and a net loss applicable to common shareholders of $49.0 million in 2001 compared with a net loss applicable to common shareholders of $58.6 million in 2000. Net loss applicable to common shareholders in 2000 reflects 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 on the Company's Series D 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. issued in February and March 2000. "In 2001 we made solid progress in conserving con·serve v. con·served, con·serv·ing, con·serves v.tr. 1. a. To protect from loss or harm; preserve: our resources by focusing on near term market opportunities for our product line, maintaining necessary R & D expenses while preparing our business for our planned merger with Occam Networks," said H. Michael Hogan Michael Hogan is the name of:
"We have substantially reduced our 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. and headcount while continuing to fund research and development needed to support the products which we expect will generate the majority of revenue in the near term. We ended 2001 with approximately $575,000 in deferred revenue for our IAD (Integrated Access Device) A device that multiplexes a variety of communications technologies in the customer's premises onto a single telephone line for transmission to the carrier. It also demultiplexes the incoming streams into their respective channels. and related products that we expect to recognize in early 2002," he added. 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 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). Its AN- an- pref. Variant of a-. 32 integrated Access Device (IAD) was named Network Magazine's Local Loop Access Device product of the year for 2001. In November 2001, Accelerated announced the signing of a definitive merger agreement with Occam Networks Inc., Santa Barbara Santa Barbara (săn'tə bär`brə, –bərə), city (1990 pop. 85,571), seat of Santa Barbara co., S Calif., on the Pacific Ocean; inc. 1850. , Calif. The merger is expected to close early in the second quarter 2002 subject to the satisfaction of certain closing conditions, including the approval of the stockholders of both companies. For additional information, please visit www.acceleratednetworks.com. Accelerated Networks has filed a Registration Statement on SEC Form S-4 in connection with the merger. The Registration Statement and the Proxy Statement/Prospectus will contain important information about Accelerated Networks, Occam, the merger and related matters. Investors and security holders of Accelerated Networks are urged to read the Registration Statement and Proxy Statement/Prospectus carefully when they are available. Free copies of these documents will be available through the Web site maintained by the SEC at http://www.sec.gov/ 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 ability of the Company to complete its merger with Occam Networks Inc., the ability of our management team, 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 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 as a result of new information, future events or otherwise. Please refer to the Company's recent quarterly report on Form 10-Q Form 10-Q See 10-Q. , 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 other 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.
ACCELERATED NETWORKS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
2001 2000 2001 2000
(Unaudited) (Audited)
Net revenue $ 535 $ 8,046 $ 3,168 $ 34,228
Cost of revenue 1,424 15,131 9,688 33,552
Gross profit (loss) (889) (7,085) (6,520) 676
Operating expenses:
Research & product
development 2,721 5,500 21,324 23,606
Sales & marketing 829 4,856 6,925 23,084
General &
administrative 2,806 1,960 9,019 6,522
Restructuring and
other charges 3,105 -- 7,252 --
Total operating
expenses 9,461 12,316 44,520 53,212
Loss from operations (10,350) (19,401) (51,040) (52,536)
Other income (expense):
Interest income 327 1,318 2,115 3,924
Interest expense (7) (39) (31) (154)
Net loss before
income taxes (10,030) (18,122) (48,956) (48,766)
Provision for
income taxes 1 -- 1 1
Net loss (10,031) (18,122) (48,957) (48,767)
Beneficial conversion
feature -- -- -- (9,882)
Net loss applicable
to common stockholders $(10,031) $(18,122) $(48,957) $(58,649)
Basic and diluted net
loss per share applicable
to common stockholders $ (0.20) $ (0.37) $ (0.98) $ (2.02)
Shares used to compute
basic and diluted net
loss per share applicable
to common
stockholders 49,661 49,013 50,203 29,106
Amortization of deferred
compensation included
in:
Cost of revenue (58) (183) (75) 216
Research & development (459) (442) (559) 2,270
Sales & marketing (231) (465) (1,553) 2,190
General & administrative 161 310 566 1,564
$ (587) $ (780) $ (1,621) $ 6,240
ACCELERATED NETWORKS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31,
2001 2000
--------------------
(Audited)
ASSETS
Cash and cash equivalents $ 29,619 $ 62,194
Short term investments -- 7,913
Accounts receivable, net 612 5,490
Amounts due from related party -- 11,147
Inventories 3,965 5,266
Prepaid and other current assets 1,320 1,570
Total current assets 35,516 93,580
Property & equipment, net 6,920 10,164
Other assets 169 199
Total assets $ 42,605 $103,943
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses 5,507 13,216
Accrued payroll 1,262 1,708
Debt obligations, current 111 97
Deferred revenue 837 3,370
Total current liabilities 7,717 18,391
Debt obligations, noncurrent 57 168
Total liabilities 7,774 18,559
Preferred stock -- --
Common stock 51 50
Additional paid in capital 175,688 180,913
Cumulative foreign currency adjustment (124) (79)
Deferred stock compensation (718) (4,391)
Accumulated deficit (140,066) (91,109)
Total stockholders' equity 34,831 85,384
Total liabilities and
stockholders' equity $ 42,605 $ 103,943
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