Exhibit 99.1
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SYCAMORE
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NETWORKS
FOR IMMEDIATE RELEASE
CONTACT:
Press Inquiries Investor Inquiries
Lucia Graziano Andrew Kramer
Public Relations Investor Relations
Sycamore Networks, Inc. Sycamore Networks, Inc.
978-250-3447 978-367-7368
lucia.graziano@sycamorenet.com andy.kramer@sycamorenet.com
SYCAMORE NETWORKS, INC. REPORTS SECOND QUARTER FISCAL YEAR 2003 FINANCIAL
RESULTS
CHELMSFORD, Mass., February 11, 2003 - Sycamore Networks, Inc. (NASDAQ: SCMR),
a leader in intelligent optical networking, today reported its second quarter
results for the period ended January 25, 2003.
Revenue for the second quarter of fiscal 2003 was $10.8 million, compared with
$21.8 million for the second quarter of fiscal 2002.
Net loss for the second quarter of fiscal 2003, on a generally accepted
accounting principles (GAAP) basis, was $16.1 million or $(0.06) per share,
compared with a net loss of $35.3 million, or $(0.14) per share for the second
quarter of fiscal 2002. Pro forma net loss for the second quarter was $14.0
million, or $(0.05) per share, compared with a pro forma net loss of $27.8
million, or $(0.11) per share for the second quarter of fiscal 2002. A
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 the first six months of fiscal 2003 was $16.8 million, compared
with $43.0 million for the first six months of fiscal 2002.
Net loss for the first six months of fiscal 2003, on a GAAP basis, was $33.5
million or $(0.13) per share, compared with a net loss of $283.3 million, or
$(1.13) per share for the first six months of fiscal 2002. Pro forma net loss
for the first six months of fiscal 2003 was $29.0 million, or $(0.11) per
share, compared with a pro forma net loss of $66.9 million, or $(0.27) per
share for the first six months of fiscal 2002.
"Sycamore's second-quarter financial results reflect improvement in many areas
compared with the first quarter," stated Daniel E. Smith, Sycamore's president
and chief executive officer. "Sycamore's customers continue to benefit from
our optical switching solutions through improved network efficiency, faster
time to revenue and new service delivery. Sycamore's investments in the
people, products and programs that will satisfy existing and prospective
customer requirements are balanced by initiatives aimed at controlling
expenses and maintaining our balance sheet strength."
CONFERENCE CALL WEBCAST
Sycamore plans to review its second-quarter results and discuss its business
outlook during a conference call today beginning at 4:30 p.m. EST. A Webcast
of the conference call will be available to all interested parties on the
Sycamore web site located at www.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 (NASDAQ: SCMR) develops and markets intelligent optical
networking products for the telecommunications industry. An ISO 9001:2000
registered company, Sycamore's optical switching products are forming the
network foundation for some of the world's most respected and innovative
service providers. The software intelligence common to all Sycamore products
empowers rapid deployment and delivery of services, from the edge to the core
of the network. Contact Sycamore Networks at www.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. The Company's actual results
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.
Sycamore provides pro forma financial data in addition to providing financial
results in accordance with GAAP. Please note that this pro forma financial
data is not calculated in accordance with GAAP and may not permit meaningful
comparisons with other companies.
SYCAMORE NETWORKS, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
JANUARY 25, 2003 JULY 31, 2002
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ASSETS
Current assets:
Cash and cash equivalents $ 349,425 $ 172,658
Short-term investments 381,208 509,350
Accounts receivable, net 15,061 18,187
Inventories 9,761 12,940
Prepaids and other current assets 5,911 3,447
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Total current assets 761,366 716,582
Property and equipment, net 22,655 32,696
Long-term investments 276,146 361,537
Other assets 3,866 7,760
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TOTAL ASSETS $ 1,064,033 $ 1,118,575
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LIABILITIES AND STOCKHOLDERS' EQUITY
Deferred revenue $ 1,929 $ 4,978
Other current liabilities 20,171 26,907
Restructuring liabilities 30,476 48,167
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Total current liabilities 52,576 80,052
Common stock 272 274
Additional paid-in capital 1,733,874 1,732,846
Accumulated deficit (714,565) (681,086)
Other equity (8,124) (13,511)
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Total stockholders' equity 1,011,457 1,038,523
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,064,033 $ 1,118,575
=========== ===========
SYCAMORE NETWORKS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED SIX MONTHS ENDED
JANUARY 25, JANUARY 26, JANUARY 25, JANUARY 26,
2003 2002 2003 2002
---- ---- ---- ----
Revenue $ 10,825 $ 21,800 $ 16,763 $ 43,043
Cost of revenue 10,587 19,400 17,730 142,014
Stock compensation 357 436 713 953
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Gross profit (loss) (119) 1,964 (1,680) (99,924)
Operating expenses:
Research and development 13,426 25,984 27,349 62,494
Sales and marketing 5,067 11,377 10,008 25,078
General and administrative 1,750 2,614 3,408 5,803
Stock compensation 1,747 7,141 3,764 12,908
Payroll tax on stock option exercises 10 5 15 15
Restructuring charges and related asset
impairments -- -- -- 77,306
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Total operating expenses 22,000 47,121 44,544 183,604
Loss from operations (22,119) (45,157) (46,224) (283,528)
Losses on investments -- -- -- (22,737)
Interest and other income, net 6,002 9,808 12,745 22,981
--------- --------- --------- ---------
Net loss $ (16,117) $ (35,349) $ (33,479) $(283,284)
========= ========= ========= =========
Diluted net loss per share $ (0.06) $ (0.14) $ (0.13) $ (1.13)
Weighted average shares used in computing
diluted net loss per share 264,981 253,150 263,640 251,082
SYCAMORE NETWORKS, INC.
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
SEE PRO FORMA ADJUSTMENTS LISTED IN TABLE BELOW
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED SIX MONTHS ENDED
JANUARY 25, JANUARY 26, JANUARY 25, JANUARY 26,
2003 2002 2003 2002
---- ---- ---- ----
Revenue $ 10,825 $ 21,800 $ 16,763 $ 43,043
Cost of revenue 10,587 19,400 17,730 39,581
--------- --------- --------- ---------
Gross profit (loss) 238 2,400 (967) 3,462
Operating expenses:
Research and development 13,426 25,984 27,349 62,494
Sales and marketing 5,067 11,377 10,008 25,078
General and administrative 1,750 2,614 3,408 5,803
--------- --------- --------- ---------
Total operating expenses 20,243 39,975 40,765 93,375
Loss from operations (20,005) (37,575) (41,732) (89,913)
Interest and other income, net 6,002 9,808 12,745 22,981
--------- --------- --------- ---------
Net loss $ (14,003) $ (27,767) $ (28,987) $ (66,932)
========= ========= ========= =========
Diluted net loss per share $ (0.05) $ (0.11) $ (0.11) $ (0.27)
Weighted average shares used in computing
diluted net loss per share 264,981 253,150 263,640 251,082
THE RESULTS ABOVE ARE PRO FORMA AND HAVE BEEN
ADJUSTED TO EXCLUDE THE FOLLOWING ITEMS:
Stock compensation included in gross profit
(loss) 357 436 713 953
Stock compensation included in operating
expenses 1,747 7,141 3,764 12,908
Payroll tax on stock option exercises 10 5 15 15
Restructuring charges and related asset
impairments -- -- -- 77,306
Excess inventory charge -- -- -- 102,433
Losses on investments -- -- -- 22,737
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$ 2,114 $ 7,582 $ 4,492 $ 216,352
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