Accelerated Networks Reports Second Quarter and First Half Results.Business Editors MOORPARK, Calif.--(BUSINESS WIRE)--July 24, 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 reported financial results for the three- and six-month periods ended June 30, 2001. Net revenue for the second quarter of 2001 was $670,000, a decrease of 91% from the $7.5 million reported in the same period a year ago. The company reported a net loss of $12.3 million, or 25 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , for the second quarter of 2001, as compared with a net loss of $12.8 million, or $1.14 per share, for the second quarter 2000. The company reported a pro-forma net loss of $11.4 million, or 23 cents per share for the second quarter of 2001, excluding the effect of stock-based compensation and other charges related primarily to employee separation costs, as well as non-recurring legal and accounting costs related to the restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. of quarterly financial results for fiscal 2000, as compared with a pro-forma loss of $9.0 million, or 21 cents per share, for the second quarter 2000, excluding the effect of stock-based compensation and a one-time charge for a two-year warrant issued to U.S. West. For the six-month period ended June 30, 2001, the company reported net revenue of $2.2 million, a decrease of 85% from $14.6 million reported in the same period of 2000. Net loss for the six-month period ended June 30, 2001, was $26.3 million, or 53 cents per share, as compared with a net loss of $21.7 million, or $2.29 per share, and net loss applicable to common shareholders of $31.5 million, or $3.34 per share, in the same period of 2000. Pro-forma net loss for the six months ended June 30, 2001, was $25.4 million, or 52 cents per share, excluding the effect of amortization of stock-based compensation and other charges related primarily to employee separation costs, as well as non-recurring legal and accounting costs related to the restatement of quarterly financial results for fiscal 2000, compared with a net loss of $15.5 million, or 37 cents per share, for the first half of 2000, excluding the effect of amortization of deferred stock compensation, a one-time charge for a two-year warrant issued to U.S. West, and a one-time beneficial conversion feature charge. "Our company was severely impacted by the worldwide slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. that is affecting the entire telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. industry. As this slowdown affected customers, particularly CLECs, sales to most of these customers simply disappeared," said Gary J. Sbona, chairman and chief executive officer. "A completely new management team put in place in mid-February moved aggressively to reduce non-engineering 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 streamline our organizational structure  This article has no lead section.To comply with Wikipedia's lead section guidelines, one should be written. , refocus Verb 1. refocus - focus once again; The physicist refocused the light beam" focus - cause to converge on or toward a central point; "Focus the light on this image" 2. our R&D efforts to maintain current product lines and develop next-generation products, and focus our sales efforts on certain niche areas offering near term revenue opportunities," Sbona continued. "We expect to announce our next product release, which provides redundancy and increasing density to our integrated suite of multiservice 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). products, in late third quarter. At this time, we do not expect a major turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. in the U.S. market this year and are exploring opportunities in other markets. "As previously announced, we have signed an agreement with Alliant Partners of Palo Alto Palo Alto, city, California Palo Alto (păl`ō ăl`tō), city (1990 pop. 55,900), Santa Clara co., W Calif.; inc. 1894. Although primarily residential, Palo Alto has aerospace, electronics, and advanced research industries. , Calif., to assist us in exploring other options. Such options might include divesting one or more product lines, joint product development and seeking potential corporate partners. We intend to evaluate each option carefully and thoughtfully and choose those that offer the maximum value to our shareholders. "Our cash position remains strong. At June 30, 2001, cash and cash equivalents on hand amounted to nearly $48 million," he added. Note: The Accelerated Networks conference call is scheduled for 1:30 p.m. pacific time, July 24, 2001. To access the call, dial 800/309-5449 in the U.S. and Canada, 706/634-1771 internationally. A replay of the call will be available for 48 hours beginning at 3:30 p.m. pacific time. To access the replay, dial 800/642-1687 in the U.S. or 706/645-9291 internationally and enter the conference code 1359881. About Accelerated Networks Inc. Accelerated Networks, with headquarters 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 (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). Its AN- an- pref. Variant of a-. 32 integrated access device (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. ) was recently named Network Magazine's Local Loop Access Device product of the year. For additional information, visit www.acceleratednetworks.com. Portions of this news 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 and Alliant to identify and consummate To carry into completion; to fulfill; to accomplish. A Common-Law Marriage is consummated when the parties live in a manner intended to bring about public recognition of their relationship as Husband and Wife. strategic initiatives and transactions or attract joint venture or other corporate partners; the ability of the company's management team, including its 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 the company's customers deploy their networks; the company's customers' ability to secure financing; the timing of order and shipments of products; mix of products sold; changes in the prices of the company's components; ability to maintain production volumes and secure key components; and its 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. 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 Securities and Exchange Commission, 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.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share amounts)
Three Months Six Months
Ended June 30, Ended June 30,
2001 2000 2001 2000
Net revenue $ 670 $ 7,463 $ 2,229 $ 14,615
Cost of revenue 2,464 5,130 4,883 10,217
Gross profit (loss) (1,794) 2,333 (2,654) 4,398
Operating expenses:
Research & product development 6,544 5,540 14,006 9,690
Sales & marketing 1,965 6,509 6,000 10,472
General & administrative 1,681 1,325 4,143 2,119
Amortization of deferred
compensation (481) 2,389 (502) 4,774
Other charges 1,381 -- 1,381 --
Total operating expenses 11,090 15,763 25,028 27,055
Loss from operations (12,884) (13,430) (27,682) (22,657)
Interest and other income, net 573 620 1,431 1,005
Loss before provision for
income taxes (12,311) (12,810) (26,251) (21,652)
Provision for income taxes -- -- -- 1
Net Loss (12,311) (12,810) (26,251) (21,653)
Beneficial conversion feature -- -- -- (9,882)
Net loss applicable to
common stockholders $(12,311) $(12,810) $(26,251) $(31,535)
Basic and diluted net loss
per share applicable to
common stockholders $ (0.25) $ (1.14) $ (0.53) $ (3.34)
Shares used to compute
basic and diluted net loss
per share applicable to
common stockholders 49,573 11,213 49,140 9,438
Pro forma information:
Pro forma net loss(a)(b) $(11,411) $ (9,036) $(25,372) $(15,494)
Pro forma basic and diluted
net loss per share(a)(b)(c) $ (0.23) $ (0.21) $ (0.52) $ (0.37)
Shares used in computing
basic and diluted net loss
per share(c) 49,573 43,588 49,140 42,193
(a) Included in sales and marketing expense for the three and six
months ended June 30, 2000, is a $1,385,000 one-time charge for a
two-year warrant issued to U.S. West. Pro forma basic and diluted net
loss per share excludes the effects of this charge.
(b) Pro forma basic and diluted net loss per share excludes the effect
of stock-based compensation; a one-time beneficial conversion feature
charge incurred in the six months ended June 30, 2000; and other
charges of $1,381,000 incurred in the three months ended June 30,
2001, related primarily to employee separation costs as well as
non-recurring legal and accounting costs related to the restatement of
quarterly financial results for fiscal 2000.
(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 date of
issuance, if later.
ACCELERATED NETWORKS INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
As of
June 30, 2001 Dec. 31, 2000
ASSETS
Current assets:
Cash and cash equivalents $ 47,872 $ 62,194
Short term investments -- 7,913
Accounts receivable, net 888 16,637
Inventories, net 6,879 5,266
Prepaid and other current assets 1,379 1,570
Total current assets 57,018 93,580
Property & equipment, net 10,310 10,164
Other assets 173 199
Total assets $ 67,501 $103,943
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $ 5,804 $ 14,924
Debt, current portion 104 97
Deferred revenues 2,774 3,370
Total current liabilities 8,682 18,391
Debt, less current portion 114 168
Stockholders' equity 58,705 85,384
Total liabilities and
stockholders' equity $ 67,501 $103,943
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion