Sycamore Networks, Inc. Reports First Quarter Fiscal Year 2013 Financial Results Board of Directors Approves Special Cash Distribution of $0.50 Per Share Business Wire CHELMSFORD, Mass. -- November 29, 2012 Sycamore Networks, Inc. (NASDAQ: SCMR), today reported its results for the first quarter ended October 27, 2012. Revenue for the first quarter of fiscal 2013 was $12.1 million, compared with $15.4 million for the first quarter of fiscal 2012. Net loss for the first quarter of fiscal 2013, on a generally accepted accounting principles (“GAAP”) basis, was $6.8 million, or $0.23 per share, compared with a GAAP net loss of $1.6 million, or $0.06 per share, for the first quarter of fiscal 2012. Non-GAAP net loss for the first quarter of fiscal 2013 was $3.9 million, or $0.14 per share, compared with a non-GAAP net loss of $0.9 million, or $0.03 per share for the first quarter of fiscal 2012. The reconciliation between net loss on a GAAP basis and net loss on a non-GAAP basis is provided in the table immediately following the Unaudited Condensed Consolidated Statements of Operations included with this press release. The Company also announced that, on November 27, 2012, its Board of Directors approved a special cash distribution of $0.50 per share of its common stock. The special cash distribution will be paid on December 20, 2012 to stockholders of record as of December 10, 2012. Given the amount of the special cash distribution, the Company expects that the ex-dividend date for the special cash distribution will be December 6, 2012, which is two business days prior to the record date for the special cash distribution. The Company also announced it will not be holding a conference call with investors regarding its first quarter results. About Sycamore Networks Sycamore Networks, Inc. (NASDAQ: SCMR) develops and markets intelligent bandwidth management solutions for fixed line and mobile network operators worldwide. Sycamore products enable network operators to efficiently and cost-effectively provision and manage network capacity to support a wide range of converged services such as voice, video and data. Our global customer base includes Tier 1 service providers, government agencies, and utility companies. For more information, please visit www.sycamorenet.com. Use of Non-GAAP Financial Measures The Company provides non-GAAP financial data in addition to providing financial results in accordance with generally accepted accounting principles (GAAP). These measures are not in accordance with or an alternative for GAAP, and may be different from non-GAAP measures used by other companies. The Company believes that the items excluded from the non-GAAP results have one or more of the following characteristics: their magnitude and timing are largely outside of the Company’s control; they are unrelated to the ongoing operation of the business in the ordinary course; they are unusual, and the Company does not expect them to occur in the ordinary course of business; or they are non-operational, non-cash expenses involving stock option grants. The non-GAAP financial data is provided to enhance the reader’s overall understanding of the Company’s current financial performance and its prospects for the future. Specifically, the Company believes the non-GAAP results provide useful information to both management and investors by excluding certain expense and income items that the Company believes are not indicative of the Company’s core operating results. In addition, since the Company has historically reported non-GAAP results to the investment community, the Company believes the inclusion of non-GAAP numbers provides consistency in its financial reporting. Further, these non-GAAP results are one of the primary indicators management uses for planning and forecasting in future periods. The non-GAAP financial data should be considered in addition to, not as a substitute for or a more appropriate indicator of, operating results, cash flows, or other measures of financial performance prepared in accordance with GAAP. Caution Regarding Forward-Looking Statements We wish to caution you that certain matters discussed in this press release may constitute “forward-looking statements,” as defined under the federal securities laws. Risks and uncertainties relating to the Company’s business could cause actual events and results to differ materially from those stated or implied in such statements. Potential risks and uncertainties include, among others, the impact of the announcement of the sale of substantially all of the assets of our Intelligent Bandwidth Management business (the “Asset Sale”) and the dissolution of the Company on the trading price of our common stock and our business and on our relationships with our customers, suppliers and employees; our ability to successfully close the Asset Sale and the timing of such closing; difficulties associated with identifying, analyzing or consummating strategic alternatives with respect to our IQstream® business and our other remaining non-cash assets; our inability to predict the timing, amount or nature of any additional cash distributions to stockholders; the Company’s reliance on a limited number of customers; industry pricing pressures; the consolidation of both suppliers and customers in the telecommunications marketplace; and general economic conditions. More information about potential factors that could affect the Company’s business and financial results is included in the section entitled "Risk Factors" in the Company's reports filed on Forms 10-Q and 10-K 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 Networks, Inc. Unaudited Condensed Consolidated Balance Sheets (in thousands) October 27, 2012 July 31, 2012 Assets Current assets: Cash and cash equivalents $ 105,608 $ 136,654 Short-term investments 39,938 234,965 Accounts receivable, net 5,720 7,785 Inventories 8,836 8,469 Prepaid and other current assets 828 1,589 Total current assets 160,930 389,462 Property and equipment, net 3,705 4,276 Long-term investments 0 67,774 Other assets 348 422 Total Assets $ 164,983 $ 461,934 Liabilities and Stockholders' Equity Current liabilities: Deferred revenue $ 5,296 $ 7,871 Other current liabilities 8,849 8,401 Total current liabilities 14,145 16,272 Long term deferred revenue 1,391 1,469 Long term liabilities 1,965 1,962 Total liabilities 17,501 19,703 Common stock 29 29 Additional paid-in capital 1,301,414 1,589,357 Accumulated deficit (1,153,638) (1,146,882) Accumulated other comprehensive loss (323) (273) Total stockholders' equity 147,482 442,231 Total Liabilities and Stockholders' $ 164,983 $ 461,934 Equity Sycamore Networks, Inc. Unaudited Condensed Consolidated Statements of Operations (in thousands, except per share data) Three Months Ended Oct 27, Oct 29, 2012 2011 Revenue $ 12,064 $ 15,380 Cost of revenue 4,903 6,262 Gross profit 7,161 9,118 Operating expenses: Research and development 6,489 6,485 Sales and marketing 2,381 2,670 General and administrative 3,087 1,985 Asset impairment - - Restructuring 1,988 (271) Total operating expenses 13,945 10,869 Loss from operations (6,784) (1,751) Interest and other income, net 201 234 Loss before income taxes (6,583) (1,517) Income tax expense (benefit) 173 97 Net loss $ (6,756) $ (1,614) Net loss per share: Basic $ (0.23) $ (0.06) Diluted $ (0.23) $ (0.06) Weighted average shares outstanding: Basic 28,881 28,741 Diluted 28,881 28,741 Sycamore Networks, Inc. Reconciliation of Selected GAAP-based Measures to Non-GAAP-based Measures (in thousands, except per share data) Three Months Ended Oct 27, Oct 29, 2012 2011 GAAP gross profit $ 7,161 $ 9,118 Less: Stock-based compensation expense 128 151 Non-GAAP gross profit $ 7,289 $ 9,269 GAAP operating expenses $ 13,945 $ 10,869 Less: Restructuring 1,988 (271) Stock-based compensation expense-R&D 330 383 Stock-based compensation expense-S&M 165 210 Stock-based compensation expense-G&A 217 230 Non-GAAP operating expenses $ 11,245 $ 10,317 GAAP loss from operations $ (6,784) $ (1,751) Less: Restructuring 1,988 (271) Stock-based compensation expense 840 974 Non-GAAP loss from operations $ (3,956) $ (1,048) GAAP net loss $ (6,756) $ (1,614) Less: Restructuring 1,988 (271) Stock-based compensation expense 840 974 Non-GAAP net loss $ (3,928) $ (911) GAAP net loss per share: Basic $ (0.23) $ (0.06) Diluted $ (0.23) $ (0.06) Less: Restructuring $ 0.07 $ (0.01) Stock-based compensation expense $ 0.03 $ 0.04 Non-GAAP net loss per share: Basic $ (0.14) $ (0.03) Diluted $ (0.14) $ (0.03) Contact: Sycamore Networks, Inc. Robert Travis, 978-250-3432 Investor Relations email@example.com or Scott Larson, 978-250-3433 Press Inquiries firstname.lastname@example.org
Sycamore Networks, Inc. Reports First Quarter Fiscal Year 2013 Financial Results
Press spacebar to pause and continue. Press esc to stop.