Avici Systems Reports First Quarter 2003 Results; Focus on Cost Yields Year Over Year Improvement.Business Editors/High-Tech Writers 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.--(BUSINESS WIRE)--April 24, 2003 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 its first quarter results for the three month period ended March 31, 2003. Gross revenue for the first quarter ended March 31, 2003 was $7.6 million compared to $9.2 million for the comparable three month period ended March 31, 2002. Revenue, net of common stock warrant discount, for the March 2003 quarter was $6.8 million, compared to $8.4 million for the same period last year. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net loss for the first quarter ended March 31, 2003 was $12.7 million, or $1.03 per share compared to a GAAP net loss of $17.7 million, or $1.42 per share in the prior year's first quarter. GAAP net loss for the 2003 and 2002 first quarter periods includes $1.3 million and $2.2 million, respectively, for non-cash equity based charges, namely common stock warrant discount and stock based compensation. 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 $112.7 million at March 31, 2003. All share and per share data for the three months ended March 31, 2002 has been restated to give effect to a one for four reverse stock split which became effective on November November: see month. 8, 2002. "This quarter we expanded our channel relationships by adding multiple international partners to sell and support our products," said Steve v. t. 1. To pack or stow, as cargo in a ship's hold. See Steeve. Kaufman, President and 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. . "We also demonstrated significant improvements in year-over-year operating costs operating costs npl → gastos mpl operacionales and gross margin percentage through our sustained focus on improving our bottom line." Avici will discuss these quarterly 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 888-273-9889. A replay of the conference call will be available after 1 PM. Replay information will be available at 800-745-6701, access code: 682136. 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, Mass., 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. 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, timely product development and enhancement, intensity of competition of other vendors, technological changes 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)
Three Months Ended
March 31,
--------------------------
2003 2002
--------------------------
Revenue:
Product $6,663 $8,436
Service 927 791
--------------------------
Total gross revenue 7,590 9,227
Less - Common stock warrant discount -
Product (817) (817)
--------------------------
Net revenue 6,773 8,410
--------------------------
Cost of revenue - Product 3,261 5,459
Cost of revenue - Service 762 443
--------------------------
Total cost of revenue 4,023 5,902
--------------------------
Gross margin 2,750 2,508
--------------------------
Operating expenses:
Research and development (1) 11,341 14,413
Sales and marketing (1) 2,801 3,696
General and administrative (1) 1,541 1,879
Stock-based compensation 452 1,344
--------------------------
Total operating expenses 16,135 21,332
--------------------------
Loss from operations (13,385) (18,824)
Interest income, net 685 1,101
--------------------------
Net loss $(12,700) $(17,723)
==========================
Net loss per basic and diluted share $(1.03) $(1.42)
==========================
Weighted average common shares used in
computing basic and diluted net loss per
share 12,340,912 12,438,932
==========================
(1) Excludes non-cash, stock-based
compensation, as follows:
Research and development $276 $829
Sales and marketing 88 256
General and administration 88 259
--------------------------
$452 $1,344
==========================
AVICI SYSTEMS INC.
NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
(unaudited)
Note 1
Three Months Ended
March 31,
----------------------
2003 2002
----------------------
Revenue:
Product $6,663 $8,436
Service 927 791
----------------------
Total gross revenue 7,590 9,227
----------------------
Cost of revenue - Product 3,261 5,459
Cost of revenue - Service 762 443
----------------------
Total cost of revenue 4,023 5,902
----------------------
Gross margin 3,567 3,325
----------------------
Operating expenses:
Research and development 11,341 14,413
Sales and marketing 2,801 3,696
General and administrative 1,541 1,879
----------------------
Total operating expenses 15,683 19,988
----------------------
Loss from operations (12,116) (16,663)
Interest income, net 685 1,101
----------------------
Non-GAAP net loss $(11,431) $(15,562)
======================
Non-GAAP net loss per basic and diluted share $(0.93) $(1.25)
======================
Weighted average common shares used in computing
net loss per share:
Basic and diluted 12,340,912 12,438,932
======================
Note 1 - the above non-GAAP consolidated statements of operations for
the three months ended March 31, 2003 and March 31, 2002 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 stock based compensation. The Company
believes that this presentation of non-GAAP results provides helpful
information to both management and investors in assessing our
operating results.
Three months ended
March 31,
----------------------
2003 2002
----------------------
Non-GAAP net loss $(11,431) $(15,562)
Common stock warrant discount (817) (817)
Non-cash stock based compensation (452) (1,344)
----------------------
GAAP net loss $(12,700) $(17,723)
======================
AVICI SYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
March 31, Dec. 31,
2003 2002
--------------------
Assets
Cash and marketable securities $77,108 $82,832
Inventories, net 844 1,147
Trade accounts receivable, net 4,323 2,593
Other current assets 1,329 1,364
--------------------
Total current assets 83,604 87,936
Long-term investments 35,587 42,257
Property and equipment, net 23,243 27,438
Other assets 523 523
--------------------
Total assets $142,957 $158,154
====================
Liabilities and Stockholders' Equity
Accounts payable and accrued expenses $12,707 $12,531
Deferred revenue 6,662 9,973
Current portion of capital lease obligations 502 707
Long-term liabilities -- 46
Stockholders' equity 123,086 134,897
--------------------
Total liabilities and stockholders' equity $142,957 $158,154
====================
December 31, 2002 amounts are derived from
audited financial statements.
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