Breaking News

Tweet TWEET

Sycamore Networks, Inc. Reports First Quarter Fiscal Year 2013 Financial Results

  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
bob.travis@sycamorenet.com
or
Scott Larson, 978-250-3433
Press Inquiries
scott.larson@sycamorenet.com