Avici Q3 meets lowered expectations

Avici Systems this week posted third quarter revenue and losses in line with previous guidance.

Gross revenue for the period ended Sept. 30, 2002, was $7.3 million, down 29% from the same period a year ago. Pro forma net loss was $16.0 million, or $0.32 per share, compared to $19.4 million, or $0.39 per share, for the 2001 third quarter.

On a sequential basis, third quarter revenue was down 22% from the $9.3 million recorded for the second quarter ended June 30. Pro forma net loss was down 6% from the second quarter's $15.1 million, or $0.30 per share, loss.

Gross revenue for the nine months ended Sept. 30, 2002 was $25.8 million, compared with $47.4 million for the same period last year. Pro forma net loss for the nine-month period was $46.7 million, or $0.94 per share, compared to $42.7 million, or $0.87 per share, for the same period a year ago.

Avici also announced this week a new customer deployment at Global NAPs. Global NAPs is installing Avici's Stackable Switch Router for peering and aggregation applications.

Earlier this month, Avici announced that Qwest deployed SSRs in its network after a lengthy trial period.

"Despite tough carrier market conditions, this quarter we continued to broaden our customer base and widen our market opportunity," said Steve Kaufman, Avici president and CEO.