Accelerated Networks Reports Third Quarter and Nine Month Results.Business Editors MOORPARK, Calif.--(BUSINESS WIRE)--Nov. 1, 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 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 nine-month periods ended Sept. 30, 2001. Net revenue for the third quarter of 2001 was $404,000, a decrease of 97% from the $11.57 million reported in the same period a year ago. The Company reported a net loss of $12.68 million, or $0.25 per share, for the third quarter of 2001 as compared with a net loss of $9.0 million, or $.19 per share, for the third quarter of 2000. The Company reported a pro-forma net loss of $10.44 million, or $0.21 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 third quarter of 2001, excluding the effect of stock-based compensation and other charges related primarily to employee separation and retention costs, as compared with a pro-forma loss of $6.75 million or $0.14 per share in the third quarter of 2000, excluding the effect of stock-based compensation. For the nine-month period ended Sept. 30, 2001, the Company reported net revenue of $2.6 million, a decrease of 90% from $26.18 million reported in the same period of 2000. Net loss for the nine-month period ended Sept. 30, 2001 was $38.93 million, or $0.79 per share, as compared with a net loss of $30.65 million, or $1.12 per share, and net loss applicable to common shareholders of $40.53 million, or $1.48 per share, in the same period of 2000. Pro-forma net loss for the nine months ended Sept. 30, 2001 was $35.81 million, or $0.73 per share, excluding the effect of amortization of stock-based compensation and other charges related primarily to employee separation and retention 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, compared with a pro-forma net loss of $22.24 million or $0.50 per share for the first nine months of 2000, excluding the effect of 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. charge for a two year warrant issued to U.S. West, and a one-time beneficial conversion feature charge. "Our Company continues to be 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. affecting the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. industry. We 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," said Gary Gary, city (1990 pop. 116,646), Lake co., NW Ind., a port of entry on Lake Michigan; inc. 1909. Gary was founded by the U.S. Steel Corporation, which purchased the land in 1905 and landscaped it for a city. J. Sbona, chairman and chief executive officer. "As a result, we are now a more efficiently operated company than we were at the beginning of the year. At Sept. 30, 2001, cash and cash equivalents on hand were more than $38 million. In conjunction 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. we have continued to explore options including divesting one or more product lines, joint product development and seeking potential corporate partners. We will continue to evaluate these options and work to maximize shareholder value," he said. About Accelerated Networks, Inc. Accelerated Networks, headquartered in Moorpark, designs and develops multi service 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 multi service 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 multi-service 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 named Network Magazine's Local Loop Access Device product of the year. For additional information, please 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, general market conditions affecting communications service providers purchase of equipment, in particular, DSL-related equipment, 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 management to continue to effectively control costs and manage operations, 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, our ability to develop new products to meet market demand, and the effects of natural disasters, international conflicts and other events beyond our control. 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 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.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
2001 2000 2001 2000
Net revenue $ 404 $ 11,567 $ 2,633 $ 26,182
Cost of revenue 3,398 7,805 8,282 18,022
Gross profit (loss) (2,994) 3,762 (5,649) 8,160
Operating expenses:
Research & product
development 4,697 5,704 18,703 15,394
Sales & marketing (A) 1,418 5,101 7,418 15,573
General & administrative 1,665 1,189 5,808 3,308
Amortization of deferred
compensation (532) 2,246 (1,034) 7,020
Other charges 2,766 -- 4,147 --
Total operating expenses 10,014 14,240 35,042 41,295
Loss from operations (13,008) (10,478) (40,691) (33,135)
Interest and other
income, net 333 1,486 1,764 2,491
Loss before provision
for income taxes (12,675) (8,992) (38,927) (30,644)
Provision for income
taxes -- -- -- 1
Net Loss (12,675) (8,992) (38,927) (30,645)
Beneficial conversion
feature -- -- -- (9,882)
Net loss applicable to
common stockholders $ (12,675) $ (8,992) $ (38,927) $ (40,527)
Basic and diluted net
loss per share
applicable to common
stockholders $ (0.25) $ (0.19) $ (0.79) $ (1.48)
Shares used to compute
basic and diluted net
loss per share
applicable to common
stockholders 49,848 48,535 49,227 27,430
Pro forma information:
Pro forma net loss (A)(B) $ (10,441) $ (6,746) $ (35,814) $ (22,240)
Pro forma basic and
diluted net loss per
share (A)(B)(C) $ (0.21) $ (0.14) $ (0.73) $ (0.50)
Shares used in computing
basic and diluted net
loss per share (C) 49,848 48,535 49,227 44,307
(A) Included in sales and marketing expense for the nine months
ended Sept. 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 nine months ended Sept. 30, 2000; and
other charges of $2,766,000 and $4,147,000 incurred in the three- and
nine-months ended Sept. 30, 2001, respectively related primarily to
employee separation and retention 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
Sept. 30, 2001 Dec. 31, 2000
ASSETS
Current assets:
Cash and cash equivalents $ 38,124 $ 62,194
Short term investments -- 7,913
Accounts receivable, net 136 16,637
Inventories, net 4,594 5,266
Prepaid and other current
assets 1,643 1,570
Total current assets 44,497 93,580
Property & equipment, net 9,219 10,164
Other assets 155 199
Total assets $ 53,871 $ 103,943
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $ 7,417 $ 14,924
Debt, current portion 107 97
Deferred revenues 786 3,370
Total current liabilities 8,310 18,391
Debt, less current portion 87 168
Stockholders' equity 45,474 85,384
Total liabilities and stockholders'
equity $ 53,871 $ 103,943
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