Avici Systems Reports 2005 Third Quarter and Nine Month Results.NORTH BILLERICA Billerica (bĭlrĭ`kə), town (1990 pop. 37,609), Middlesex co., NE Mass., on the Concord River; settled 1637, inc. 1655. An important high-tech center, its manufactures include computer hardware and software, precision instruments, and , Mass. -- Avici The Avici (sometimes Avichi) Hell is considered to be among the lowest realms of Hell within Buddhism. People reborn into this Hell have generally committed one or more of the Five Grave Offenses:
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 : AVCI), today reported results for its third quarter and nine months ended September September: see month. 30, 2005. Gross revenue for the third quarter and nine-months ended September 30, 2005 was $8.7 million and $31.1 million, respectively, compared to $3.7 million and $22.8 million, respectively, for the three and nine-month periods ended September 30, 2004. Revenue, net of common stock warrant discount, for the three and nine-month periods ended September 30, 2005 was $8.2 million and $29.5 million, respectively, compared to $3.2 million and $21.2 million in the comparable 2004 three and nine-month periods. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net loss for the third quarter ended September 30, 2005 was $7.8 million, or $0.60 per share, compared to a GAAP net loss of $10.4 million, or $0.82 per share, in the prior year's third quarter. GAAP net loss for the 2005 and 2004 third quarter periods includes $0.5 million and $0.7 million, respectively, for non-cash equity based charges, consisting of common stock warrant discount and certain stock based compensation. GAAP net loss for the nine-months ended September 30, 2005 was $16.1 million, or $1.25 per share, compared to a GAAP net loss of $25.7 million, or $2.04 per share, for the same period last year. GAAP net loss for the nine-months ended September 30, 2005 and 2004 includes $1.6 million and $1.9 million, respectively for common stock warrant discount and certain stock based compensation, offset in the 2005 nine-month period by $0.3 million of inventory credits and $1.8 million of credits resulting from the assignment of a claim in bankruptcy claim in bankruptcy n. the written claim filed by persons or businesses owed money (creditors) by a party who files for bankruptcy (debtor) to benefit from the distribution if money becomes available. . The 2004 nine-month period was favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. affected by inventory credits of $0.7 million. Non-GAAP net loss (GAAP net loss excluding charges for common stock warrant discount, certain stock based compensation, inventory credits and credits resulting from the assignment of a claim in bankruptcy) and net loss per share for the three-month periods ended September 30, 2005 and 2004 were $7.2 million, or $0.56 per share, and $9.8 million, or $0.77 per share, respectively. Non-GAAP net loss and net loss per share for the nine-month period ended September 30, 2005 was $16.6 million, or $1.29 per share, compared to $24.6 million, or $1.95 per share for the prior year nine-month period ended September 30, 2004. Cash, marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has and 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. investments totaled $62.1 million at September 30, 2005. "While our revenue pattern continues to vary on a quarterly basis, I am looking forward to continued network expansion of our current customers and the addition of new customers in the coming quarters," said William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack Leighton Leighton is the name of a number of places:
Avici will discuss these results in an investor conference call today at 8:30 AM eastern daylight For other uses, see Daylight (disambiguation). Daylight or the light of day is the combination of all direct and indirect sunlight outdoors during the daytime (and perhaps twilight). savings time. The conference telephone number is (800) 230-1059. A replay of the conference call will be available after 1 PM. Replay information will be available at (800) 475-6701, access code: 799140. Replay of this call is also available on Avici's Web site, www.avici.com, along with a copy of this release. About Avici Systems Avici Systems Inc., headquartered in North Billerica, MA, is a leading provider of purpose-built purpose-built Adjective made to serve a specific purpose Adj. 1. purpose-built - designed and constructed to serve a particular purpose purpose-made carrier-class routing solutions for 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 . Avici's family of routers is designed to meet carrier requirements for the highest scalability How much a system can be expanded. See scalable. scalability - How well a solution to some problem will work when the size of the problem increases. For example, a central server of some kind with ten clients may perform adequately but with a thousand clients it , reliability and network availability, while lowering the total cost of building and operating their networks. The company's routing systems provide new IP solutions to some of the world's leading service providers. For more information, please visit us at www.avici.com. Avici is a trademark of Avici Systems Inc. This release contains information about Avici's future expectations, plans, and prospects that constitute 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. for purposes of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. When used in this press release, the word "will", "expected" and other similar expressions are intended to identify such forward looking statements. Such risks and uncertainties include, but are not limited to, market acceptance of Avici products, services and enhancements, customer purchasing patterns and commitments, development of the market place, product development and enhancement, intensity of competition of other vendors, technological changes, reliance on distribution partners, risks associated with international expansion, and other risks set forth in Avici's filings with the Securities and Exchange Commission.
AVICI SYSTEMS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
(Unaudited)
AVICI SYSTEMS INC.
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------------------------
2005 2004 2005 2004
--------------------------------------------
Revenue:
Product $7,563 $2,454 $27,548 $18,697
Service 1,170 1,256 3,539 4,064
--------------------------------------------
Total gross revenue 8,733 3,710 31,087 22,761
Less - Common stock
warrant discount -
Product (527) (527) (1,581) (1,581)
--------------------------------------------
Net revenue 8,206 3,183 29,506 21,180
--------------------------------------------
Cost of revenue - Product
(1) 3,073 1,619 9,436 8,716
Cost of revenue - Service 515 569 1,644 1,725
--------------------------------------------
Total cost of revenue 3,588 2,188 11,080 10,441
--------------------------------------------
Gross margin 4,618 995 18,426 10,739
--------------------------------------------
Operating expenses:
Research and development
(2) 9,479 7,846 27,110 24,734
Sales and marketing (2) 2,355 2,506 6,856 8,478
General and administrative
(2) 1,060 1,218 3,566 3,990
Stock-based compensation - 129 - 309
--------------------------------------------
Total operating expenses 12,894 11,699 37,532 37,511
--------------------------------------------
Loss from operations (8,276) (10,704) (19,106) (26,772)
Other Income - - 1,788 -
Interest income, net 508 332 1,266 1,054
--------------------------------------------
Net loss $(7,768) $(10,372) $(16,052) $(25,718)
============================================
Net loss per basic and
diluted share $(0.60) $(0.82) $(1.25) $(2.04)
============================================
Weighted average common
shares used in computing
basic and diluted net
loss per share 12,902,245 12,686,147 12,877,941 12,586,555
============================================
(1) Includes benefit from
the utilization of
inventory previously
written off in 2001 as
being in excess of demand $- $43 $323 $728
============================================
(2) Excludes certain
non-cash, stock-based
compensation, as follows:
Research and
development $- $85 $- $222
Sales and marketing - 15 - 42
General and
administration - 29 - 45
--------------------------------------------
$- $129 $- $309
============================================
NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
(Unaudited)
Note 1
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------------------------
2005 2004 2005 2004
--------------------------------------------
Revenue:
Product $7,563 $2,454 $27,548 $18,697
Service 1,170 1,256 3,539 4,064
--------------------------------------------
Total gross revenue 8,733 3,710 31,087 22,761
Cost of revenue - Product 3,073 1,662 9,759 9,444
Cost of revenue - Service 515 569 1,644 1,725
--------------------------------------------
Total cost of revenue 3,588 2,231 11,403 11,169
--------------------------------------------
Gross margin 5,145 1,479 19,684 11,592
--------------------------------------------
Operating expenses:
Research and development 9,479 7,846 27,110 24,734
Sales and marketing 2,355 2,506 6,856 8,478
General and administrative 1,060 1,218 3,566 3,990
--------------------------------------------
Total operating
expenses 12,894 11,570 37,532 37,202
--------------------------------------------
Loss from operations (7,749) (10,091) (17,848) (25,610)
Interest income, net 508 332 1,266 1,054
--------------------------------------------
Non-GAAP net loss $(7,241) $(9,759) $(16,582) $(24,556)
============================================
Non-GAAP net loss per
basic and diluted share $(0.56) $(0.77) $(1.29) $(1.95)
============================================
Weighted average common
shares used in computing
basic and diluted net
loss per share 12,902,245 12,686,147 12,877,941 12,586,555
============================================
Note 1 - The above non-GAAP consolidated statements of operations for
the three and nine months ended September 30, 2005 and 2004 are not
presented in accordance with generally accepted accounting principles
(GAAP) and are presented for informational purposes only. These
statements exclude the impact of non-cash charges related to common
stock warrant discount and certain stock based compensation as well
as credits resulting from utilization of excess inventory and from
the assignment of a bankruptcy claim as presented in the following
reconciliation for the applicable periods. The Company believes that
this presentation of non-GAAP results provides helpful information to
both management and investors in assessing our core operating
performance. Such information should not be considered superior to,
in isolation from, or as a substitute for results presented in
accordance with generally accepted accounting principles.
Three Months Ended Nine Months Ended
September 30, September 30,
2005 2004 2005 2004
Non-GAAP net loss $(7,241) $(9,759) $(16,582) $(24,556)
Common stock warrant
discount (527) (527) (1,581) (1,581)
Other income - - 1,788 -
Certain non-cash stock
based compensation - (129) - (309)
Utilization of excess
inventory 0 43 323 728
--------------------------------------------
GAAP net loss $(7,768) $(10,372) $(16,052) $(25,718)
============================================
AVICI SYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
September 30, 2005 December 31, 2004
(unaudited)
Assets
Cash and marketable
securities $58,919 $55,531
Inventories 5,415 7,020
Trade accounts receivable,
net 2,202 4,243
Other current assets 1,448 1,465
-------------------- --------------------
Total current assets 67,984 68,259
Long-term investments 3,162 13,495
Property and equipment, net 8,451 8,202
Contract distribution
rights 2,633 4,214
Restricted cash 243 243
-------------------- --------------------
Total assets $82,473 $94,413
==================== ====================
Liabilities and
Stockholders' Equity
Accounts payable and
accrued expenses $10,110 $10,796
Deferred revenue 11,755 7,347
Stockholders' equity 60,608 76,270
-------------------- --------------------
Total liabilities and
stockholders' equity $82,473 $94,413
==================== ====================
December 31, 2004 amounts
are derived from audited
financial statements.
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