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Avici Q2 loss a penny better than estimates

By Jim Duffy
The Edge, 07/25/02

Avici Systems Thursday posted second quarter earnings a penny better than estimates on revenue that met analyst expectations.

For the period ended June 30, Avici recorded gross revenue of $9.3 million compared, with $9.2 million in the previous quarter and $21.4 million in the second quarter 2001, a 56.5% decline. Pro forma net loss was $15.1 million, or 30 cents per share.

Analysts were expecting a loss of 31 cents per share. For the same period a year ago, Avici posted a loss of $11.5 million, or 23 cents per share.

Actual net loss - which includes charges, credits and a gain on the settlement of an insurance claim - was $15.5 million, or 31 cents per share, compared to $15.9 million, or 32 cents per share, in the 2001 comparable period.

For the six months ended June 30, gross revenue was $18.6 million, compared with $37.1 million for the same period last year. Pro forma net loss was $30.6 million, or 62 cents per share, compared to $23.3 million, or 48 cents per share, for the same period in 2001.

Actual net loss for the six month period was $34.0 million, or 68 cents per share, compared to $33.1 million for the same period in 2001.

Avici has four customers, including AT&T and Qwest which combined account for greater than 50% of the company's revenue. AT&T installed two more Avici Terabit Switch Routers during the quarter - in Atlanta and Dallas - bring the total number of TSR's deployed in its network to nine.

Avici also added a trial customer this quarter, brining the total number of trials currently underway to 15.

As for the third quarter and the fiscal year, Avici CEO Steve Kaufman says that near term visibility is limited and that he expects conditions in the telecom environment to remain "flat." He expects carriers to resume network upgrades next year as the WorldCom bankruptcy gets sorted out and RBOCs perhaps receive more clarity on the regulatory environment for expanding out of region.

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