Exhibit 99.1 |
CONTACT: Press Inquiries Scott Larson Public Relations Sycamore Networks, Inc. 978-250-3433 scott.larson@sycamorenet.com | Investor Inquiries Andrew Kramer Investor Relations Sycamore Networks, Inc. 978-367-7368 andy.kramer@sycamorenet.com | |
SYCAMORE NETWORKS, INC. REPORTS FOURTH QUARTER AND FISCAL YEAR 2003 FINANCIAL RESULTS |
CHELMSFORD, Mass., August 19, 2003 – Sycamore Networks, Inc. (NASDAQ: SCMR), a leader in intelligent optical networking, today reported its fourth quarter and fiscal year end results for the period ended July 31, 2003. |
Revenue for the fourth quarter of fiscal 2003 was $10.9 million, compared with $8.5 million for the fourth quarter of fiscal 2002. |
Net loss for the fourth quarter of fiscal 2003, on a generally accepted accounting principles (GAAP) basis, was $9.7 million or $(0.04) per share, compared with a net loss of $73.5 million, or $(0.28) per share for the fourth quarter of fiscal 2002. Pro forma net loss for the fourth quarter was $10.9 million, or $(0.04) per share, compared with a pro forma net loss of $20.3 million, or $(0.08) per share for the fourth quarter of fiscal 2002. The reconciliation between net loss on a GAAP basis and pro forma net loss is provided in a table immediately following the Unaudited Pro Forma Consolidated Statements of Operations. |
Revenue for fiscal 2003 was $38.3 million, compared with $65.2 million for fiscal 2002. |
Net loss for fiscal 2003, on a GAAP basis, was $55.1 million or $(0.21) per share, compared with a net loss of $379.7 million, or $(1.49) per share for fiscal 2002. Pro forma net loss for fiscal 2003 was $52.0 million, or $(0.20) per share, compared with a pro forma net loss of $113.5 million, or $(0.45) per share for fiscal 2002. |
“Fiscal year 2003 proved to be a challenging year for Sycamore and the telecommunications industry in general,” stated Daniel E. Smith, Sycamore’s president and chief executive officer. “Despite difficult market conditions, Sycamore remained focused on financial management, technology innovation and customer relationships. Each of these areas will continue to be a top priority in fiscal year 2004.” |
Conference Call Webcast Sycamore plans to review its fourth quarter and fiscal year end results and discuss its business outlook during a conference call today beginning at 4:30 p.m. EDT. A Webcast of the conference call, along with GAAP reconciliation information, is available to all interested parties on the Sycamore web site located atwww.sycamorenet.com under the Investor Relations section. Interested investors are encouraged to log onto the broadcast at least 15 minutes prior to the call. Participating in the call will be Sycamore’s president and chief executive officer, Daniel E. Smith and chief financial officer, Frances M. Jewels. |
About Sycamore Networks Sycamore Networks, Inc. (NASDAQ: SCMR) develops and markets intelligent optical networking products for the telecommunications industry. Sycamore’s optical switching products form the network foundation for some of the world’s most respected and innovative service providers. The Company’s fully integrated, intelligent network solutions enable its customers to reduce network costs, simplify operations, and deliver a new generation of high-speed network services. For more information, please visitwww.sycamorenet.com. |
Except for the historical information contained herein, we wish to caution you that certain matters discussed in this news release constitute forward-looking statements that involve risks and uncertainties. Actual results or events could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to the rate of product purchases by current and prospective customers; the commercial success of the Company’s line of intelligent optical networking products; the Company’s reliance on a limited number of customers; new product introductions and enhancements by the Company and its competitors; the length and variability of the sales cycles for the Company’s products; competition; manufacturing and sourcing risks; variations in the Company’s quarterly results; general economic conditions including stock market volatility and capital market conditions as well as conditions specific to the telecommunications, Internet and related industries; and the other factors discussed in the Company’s most recently filed Quarterly Report on Form 10-Q and the other reports filed by the Company from time to time with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise. |
The Company provides pro forma financial data in addition to providing financial results in accordance with GAAP. These measures are not in accordance with, or an alternative for, GAAP and may be different from pro forma measures used by other companies. The Company believes that this presentation of pro forma financial data provides useful information to management and investors regarding certain additional financial and business trends relating to its financial condition and results of operations. In addition, the Company’s management uses these measures for reviewing the Company’s financial results and for budget-planning purposes. |
Sycamore Networks, Inc. |
July 31, 2003 | July 31, 2002 | |
---|---|---|
Assets | ||
Current assets: | ||
Cash and cash equivalents | $ 250,595 | $ 172,658 |
Short-term investments | 421,784 | 509,350 |
Accounts receivable, net | 10,769 | 18,187 |
Inventories | 5,117 | 12,940 |
Prepaids and other current assets | 3,680 | 3,447 |
Total current assets | 691,945 | 716,582 |
Property and equipment, net | 14,589 | 32,696 |
Long-term investments | 323,204 | 361,537 |
Other assets | 2,890 | 7,760 |
Total Assets | $ 1,032,628 | $ 1,118,575 |
Liabilities and Stockholders' Equity | ||
Deferred revenue | $ 2,677 | $ 4,978 |
Other current liabilities | 18,350 | 26,907 |
Restructuring liabilities | 19,086 | 48,167 |
Total current liabilities | 40,113 | 80,052 |
Common stock | 272 | 274 |
Additional paid-in capital | 1,733,476 | 1,732,846 |
Accumulated deficit | (736,192) | (681,086) |
Other equity | (5,041) | (13,511) |
Total stockholders' equity | 992,515 | 1,038,523 |
Total Liabilities and Stockholders' Equity | $ 1,032,628 | $ 1,118,575 |
Sycamore Networks, Inc. |
Three Months Ended | Year Ended | |||||
---|---|---|---|---|---|---|
July 31, 2003 | July 31, 2002 | July 31, 2003 | July 31, 2002 | |||
Revenue | $ 10,912 | $ 8,549 | $ 38,276 | $ 65,174 | ||
Cost of revenue | 7,260 | 5,816 | 33,692 | 150,880 | ||
Stock-based compensation | 358 | 422 | 1,412 | 1,815 | ||
Gross profit (loss) | 3,294 | 2,311 | 3,172 | (87,521) | ||
Operating expenses: | ||||||
Research and development | 12,399 | 21,604 | 52,426 | 109,638 | ||
Sales and marketing | 4,865 | 5,732 | 19,756 | 39,680 | ||
General and administrative | 1,977 | 2,173 | 7,237 | 10,160 | ||
Stock-based compensation | 1,207 | 4,802 | 6,627 | 22,812 | ||
Payroll tax on stock option exercises | 4 | 19 | 21 | 38 | ||
Restructuring charges and related | ||||||
asset impairments (benefit) | (2,254) | 47,684 | (4,447) | 124,990 | ||
Total operating expenses | 18,198 | 82,014 | 81,620 | 307,318 | ||
Loss from operations | (14,904) | (79,703) | (78,448) | (394,839) | ||
Losses on investments | -- | (2,108) | -- | (24,845) | ||
Interest and other income, net | 5,171 | 8,281 | 23,342 | 40,027 | ||
Net loss | $ (9,733) | $(73,530) | $(55,106) | $(379,657) | ||
Diluted net loss per share | $ (0.04) | $ (0.28) | $ (0.21) | $ (1.49) | ||
Weighted average shares used in | ||||||
computing diluted net loss per share | 268,890 | 260,020 | 265,702 | 254,663 |
Sycamore Networks, Inc. |
Three Months Ended | Year Ended | |||||
---|---|---|---|---|---|---|
July 31, 2003 | July 31, 2002 | July 31, 2003 | July 31, 2002 | |||
Revenue | $ 10,912 | $ 8,549 | $ 38,276 | $ 65,174 | ||
Cost of revenue | 7,791 | 7,581 | 34,223 | 59,250 | ||
Gross profit | 3,121 | 968 | 4,053 | 5,924 | ||
Operating expenses: | ||||||
Research and development | 12,399 | 21,604 | 52,426 | 109,638 | ||
Sales and marketing | 4,865 | 5,732 | 19,756 | 39,680 | ||
General and administrative | 1,977 | 2,173 | 7,237 | 10,160 | ||
Total operating expenses | 19,241 | 29,509 | 79,419 | 159,478 | ||
Loss from operations | (16,120) | (28,541) | (75,366) | (153,554) | ||
Interest and other income, net | 5,171 | 8,281 | 23,342 | 40,027 | ||
Net loss | $(10,949) | $(20,260) | $(52,024) | $(113,527) | ||
Diluted net loss per share | $ (0.04) | $ (0.08) | $ (0.20) | $ (0.45) | ||
Weighted average shares used in | ||||||
computing diluted net loss per share | 268,890 | 260,020 | 265,702 | 254,663 | ||
The results above are pro forma and have been adjusted to exclude the following items: | ||||||
Stock-based compensation included in | ||||||
gross profit | $ 358 | $ 422 | $ 1,412 | $ 1,815 | ||
Stock-based compensation included in | ||||||
operating expenses | 1,207 | 4,802 | 6,627 | 22,812 | ||
Payroll tax on stock option exercises | 4 | 19 | 21 | 38 | ||
Restructuring charges and related | ||||||
asset impairments (benefit) | (2,254) | 47,684 | (4,447) | 124,990 | ||
Excess inventory charge (benefit) | (531) | (1,765) | (531) | 91,630 | ||
Losses on investments | -- | 2,108 | -- | 24,845 | ||
$ (1,216) | $ 53,270 | $ 3,082 | $ 266,130 | |||