Corvis Corporation Reports Revenues of $65.0 Million for the Second Quarter.Business Editors/Hi-Tech Writers COLUMBIA Columbia, cities, United States Columbia (kəlŭm`bēə). 1 City (1990 pop. 75,883), Howard co., central Md., between Washington, D.C., and Baltimore. , Md.--(BUSINESS WIRE)--July 26, 2001 Continued Commercial Deployments of Next-Generation Products and Services Drive Revenue New Customers Added Corvis Corporation (NASDAQ NASDAQ 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 :CORV), a leading provider of intelligent all-optical networking A communications network that works completely in the optical domain. It uses optical switches connected by optical fibers. See optical switch and optical computer. solutions, today reported revenues of $65.0 million for its fiscal second quarter ended June June: see month. 30, 2001. Revenues for the second quarter were generated by continued commercial deployment of both transport and switching products under the company's contracts with Broadwing Broadwing can mean:-
In the quarter, Corvis signed a multi-year contract for the deployment of its next-generation optical networking Communications between computers, telephones and other electronic devices using light. An optical network is far more reliable and has far greater potential transmission capacity than networking in the electrical domain. See optical fiber. products with a major global telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. carrier. It also announced a field trial with EPIK EPIK Eesti Puuetega Inimeste Koda (The Estonian Chamber of Disabled People) Communications for its Multiband Edge Switch, the CorWave OCS OCS - Object Compatibility Standard . In addition, as announced today, Corvis and Telefonica, the leading telecommunications operator in the Spanish Spanish, river, c.150 mi (240 km) long, issuing from Spanish Lake, S Ont., Canada, NW of Sudbury, and flowing generally S through Biskotasi and Agnew lakes to Lake Huron opposite Manitoulin island. There are several hydroelectric stations on the river. and Portuguese-speaking world, have reached an agreement for Corvis' next-generation optical networking festoon festoon, sculptured or painted architectural or interior ornament consisting of a garland of leaves, flowers, or fruit, or some combination of these, held by ribbons or folds and draped at the ends. product, the CorWave XF. "Corvis posted another solid quarter. We continued network deployments with our existing customers, expanded our product portfolio and added new customers." said Dr. David Huber Huber may refer to:
Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net loss for the current quarter was $32.2 million, or $0.09 loss per share, excluding goodwill and other intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. amortization expense, equity-based expense and one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and other charges compared with a pro forma net loss of $22.4 million, or $0.07 loss per share for the second quarter of 2000. Reported net loss was $821.8 million, or $2.36 loss per share, for the current quarter as compared with a reported net loss of $100.7 million, or $2.51 loss per share for the second quarter of 2000. In the quarter, Corvis recorded restructuring and other charges totaling $714.6 million. These charges comprised the following: -- a $99.2 million charge associated with a write-down of excess and obsolete materials, excess purchase commitments, and the discontinuance of certain product lines -- a $18.4 million charge related to recent workforce reductions, consolidation of excess facilities, and the write-down of idle equipment -- a $588.3 million charge for the write-down of goodwill associated with the acquisition of Algety Telecom -- a $8.7 million charge for the write-down of certain equity investments Quarterly Highlights -- Corvis announced that Qwest Communications
will deploy Corvis' CorWave ON product suite in the development of a nationwide all-optical express network. In addition, Qwest (Qwest Communications International Inc., Denver, CO, www.qwest.com) A telecommunications company that offers services to telecom carriers, businesses and homes using an extensive fiber-optic network throughout the U.S. and Mexico. and Corvis announced they will also work together to develop OC-768 next-generation technologies. -- Corvis announced that it has enhanced the capacity and flexibility of its CorWave ON product suite. These enhancements offer carriers unprecedented capacity and a seamless See seamless integration. evolution to an all-optical express network. The CorWave ON provides up to 2.8 Tb/s transmission capacity in each direction and 16.8 Tb/s switching capacity. This is a seven-fold Adj. 1. seven-fold - having seven units or components septuple, sevenfold multiple - having or involving or consisting of more than one part or entity or individual; "multiple birth"; "multiple ownership"; "made multiple copies of the speech"; "his multiple increase from Corvis' previous transmission and switching products. -- Corvis announced the introduction of the CorWave OCS, the industry's first multiband switch that is scalable 11.5 Tb/s. The OCS integrates electrical and optical switching on a single Corvis network platform, enabling seamless network management across multiple networks and architectures. -- Corvis and EPIK Communications agreed to field trial Corvis' CorWave OCS. After successful completion of the field trial, EPIK is expected to deploy the CorWave OCS at major metro aggregation points in its network by early next year. Webcast Information In conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with this announcement, Corvis will host a conference call of its second quarter financial results today at 5:30 pm EST EST electroshock therapy. EST abbr. electroshock therapy . The live broadcast of the conference will be available via Corvis' website, www.corvis.com. An archived audio of the conference call will also be available for replay purposes through the Corvis website. About Corvis Corvis Corporation is a leading provider of next-generation optical services networks founded by Dr. David Huber, a pioneer in the field of optical communications Optical communications The transmission of speech, data, video, and other information by means of the visible and the infrared portion of the electromagnetic spectrum. . By deploying the industry's first all-optical network, Corvis has revolutionized the way communications traffic is moved in the new Internet-driven economy. Corvis products and services deliver all-optical network intelligence and mesh network A communications network in which there are at least two pathways to each node. If one of the paths fails, the other is still available. A "fully meshed" network means that every node has a direct connection to every other node, which is a very elaborate and expensive architecture. capabilities providing telecom service providers with end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. core networking solutions, which make them more competitive in the market. Corvis' next-generation products enable these carriers to offer their customers a vast array of advanced wavelength services that dramatically lower capital and operational costs, while generating increased revenue. For more information, call Corvis at 443/259-4000 or visit the Corvis web site at www.corvis.com. Corvis, CorWave and the Corvis logo are trademarks and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. service marks of the Corvis Corporation. All other trademarks are the property of their respective owners. Investor Note Regarding Forward Looking Statements This announcement contains certain 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. that are subject to risks and uncertainties. Actual results could differ materially from those currently anticipated as a result of a number of factors, including, but not limited to, the risks and uncertainties discussed under "Risk Factors" and "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations" in the company's filings with the Securities and Exchange Commission.
CORVIS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
Quarter Ended Six Months
June 30, July 1, June 30, July 1,
2001 2000 2001 2000
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues $ 64,959 $ - $ 149,046 $ -
Cost of sales 139,708 - 192,611 -
---------------------------------------------
Gross profit (74,749) - (43,565) -
Operating expenses:
Research and
development 41,950 13,536 82,925 33,657
Sales and marketing 15,101 4,367 30,512 9,003
General and
administrative 8,533 5,468 19,512 8,145
Goodwill and other
intangible assets
amortization
expense 49,631 106 101,876 197
Equity-based
expense 25,439 37,890 51,072 38,635
Purchased research
and development - 40,300 - 40,300
Restructuring and
other charges 606,735 - 606,735 -
---------------------------------------------
Operating loss (822,138) (101,667) (936,197) $(129,937)
Interest and other
income(expense), net 306 925 13,536 2,365
---------------------------------------------
Net loss $(821,832) $(100,742) $(922,661) $(127,572)
=============================================
Weighted average
number of common
shares outstanding
(in thousands) 347,909 40,077 345,172 38,595
Basic and diluted net
loss per common
share $ (2.36) $ (2.51) $ (2.67) $ (3.31)
=============================================
CORVIS CORPORATION
PRO FORMA
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (b)
(Dollars in thousands, except per share data)
For Discussion Purposes Only
Quarter Ended Six Months
June 30, July 1, June 30, July 1,
2001 2000 2001 2000
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues $64,959 $ -- $149,046 $ --
Cost of sales 40,542 -- 93,445 --
-----------------------------------------------
Gross profit 24,417 -- 55,601 --
Operating expenses:
Research and
development 41,950 13,536 82,925 33,657
Sales and
marketing 15,101 4,367 30,512 9,003
General and
administrative 8,533 5,468 19,512 8,145
-----------------------------------------------
Pro forma
operating loss (41,167) (23,371) (77,348) (50,805)
Interest and
other income,
net 8,988 925 22,218 2,365
-----------------------------------------------
Pro forma net loss $(32,179) $(22,446) $(55,130) $(48,440)
===============================================
Weighted average
number of common
shares
outstanding
(in thousands)
(a) 347,909 332,653 345,172 332,653
Pro forma net
loss per
common share
$(0.09) $(0.07) $(0.16) $(0.15)
===============================================
(a) For the periods ended July 1, 2000, the assumed number of common
shares outstanding are equal to 332,652,750, the amount of common
stock outstanding on July 28, 2000, after the Company's initial
public offering and the concurrent private placement.
(b) Pro forma results exclude one-time restructuring and other
charges, goodwill and other intangible assets amortization expense
and equity-based expense. For the periods ended June 30, 2001,
restructuring and other charges of $ 714.6 million recorded as
$99.2 million to Cost of Sales, $606.7 million to Operating
Expenses, including $588.3 million for the write-down of goodwill
related to the Algety Telecom acquisition, and $ 8.7 million to
Interest and Other Income(Expense) for the write-down of certain
investments.
CORVIS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
June 30, December 30,
2001 2000
(unaudited)
Assets
Current assets:
Cash and cash
equivalents $771,606 $1,024,758
Trade accounts
receivable 67,439 16,085
Inventory, net 177,065 219,414
Other current assets 27,174 26,802
---------- ----------
Total current assets 1,043,284 1,287,059
Restricted cash,
non-current 46,292 46,292
Property and
equipment, net 173,582 106,681
Goodwill and intangible
assets, net 162,064 929,204
Other non-current assets 22,435 12,600
----------- -----------
Total assets $1,447,657 $2,381,836
=========== ===========
Liabilities, redeemable
stock and stockholders'
equity
Total current liabilities $123,971 $115,019
Total liabilities 174,667 165,243
Total redeemable stock 30,000 30,000
Total stockholders'
equity (a) 1,242,990 2,186,593
---------- ----------
Total liabilities,
redeemable stock
and stockholders'
equity $1,447,657 $2,381,836
========== ==========
(a) $0.01 per share par value; 425,121,094 authorized shares;
359,626,829 shares issued and outstanding shares as of
6/30/01. 348,039,489 shares issued and outstanding as of
12/30/00.
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