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Sycamore Networks, Inc. Reports Second Quarter Fiscal Year 2012 Financial Results

We wish to caution you that certain matters discussed in this news 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 Company’s reliance on a limited number of customers; industry pricing pressures; the Company’s decision to focus future development efforts on mobile broadband optimization opportunities; the high cost of product development and keeping pace with evolving features and technologies desired by customers; unexpected difficulties in developing and marketing new mobile broadband optimization products; the inability of new products to achieve market acceptance or to function as expected; the consolidation of both suppliers and customers in the telecommunications marketplace; possible changes to the Company’s business in connection with consideration of strategic options to enhance shareholder value; 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)

         
January 28, 2012 July 31, 2011
Assets
 
Current assets:
Cash and cash equivalents $ 53,347 $ 60,765
Short-term investments 311,456 335,847
Accounts receivable, net 12,267 8,764
Inventories 9,575 11,537
Prepaid and other current assets   2,000   1,770
Total current assets 388,645 418,683
 
Property and equipment, net 5,846 5,978
Long-term investments 73,710 44,786
Other assets   294   290
Total Assets $ 468,495 $ 469,737
 
Liabilities and Stockholders' Equity
 
Current liabilities:
Deferred revenue $ 11,153 $ 9,141
Other current liabilities   7,347   8,325
Total current liabilities 18,500 17,466
 
Long term deferred revenue 1,607 1,812
Long term liabilities   2,115   1,702
Total liabilities   22,222   20,980
 
Common stock 29 29
Additional paid-in capital 1,585,655 1,583,124
Accumulated deficit (1,139,266) (1,133,958)
Other equity   (145)   (438)
Total stockholders' equity   446,273   448,757
Total Liabilities and Stockholders' Equity $ 468,495 $ 469,737
 
 

Sycamore Networks, Inc.

Unaudited Consolidated Statements of Operations

(in thousands, except per share data)

         
Three Months Ended Six Months Ended

Jan 28, 2012

 

Jan 29, 2011

Jan 28, 2012

 

Jan 29, 2011

 
Revenue $ 13,184 $ 12,157 $ 28,564 $ 23,866
Cost of revenue   5,435   5,117   11,697   12,002
Gross profit   7,749   7,040   16,867   11,864
 
Operating expenses:
Research and development 7,048 6,239 13,533 13,550
Sales and marketing 2,557 2,643 5,227 5,243
General and administrative 2,140 2,030 4,125 4,156
Restructuring   -   -   (271)   -
Total operating expenses   11,745   10,912   22,614   22,949
 
Loss from operations (3,996) (3,872) (5,747) (11,085)
 
Interest and other income, net   391   470   625   1,238
Loss before income taxes (3,605) (3,402) (5,122) (9,847)
Income tax expense   89   103   186   197
Net loss $ (3,694) $ (3,505) $ (5,308) $ (10,044)
 
Net loss per share:
Basic $ (0.13) $ (0.12) $ (0.18) $ (0.35)
Diluted $ (0.13) $ (0.12) $ (0.18) $ (0.35)
 
Weighted average shares outstanding:
Basic 28,754 28,531 28,748 28,491
Diluted 28,754 28,531 28,748 28,491
 
 

Sycamore Networks, Inc.

Unaudited Non-GAAP Consolidated Statements of Operations

(in thousands, except per share data)

         
Three Months Ended Six Months Ended

Jan 28, 2012

 

Jan 29, 2011

Jan 28, 2012

 

Jan 29, 2011

 
Revenue $ 13,184 $ 12,157 $ 28,564 $ 23,866
Cost of revenue   5,275   5,016   11,386   11,482
Gross profit   7,909   7,141   17,178   12,384
 
Operating expenses:
Research and development 6,667 6,179 12,769 13,343
Sales and marketing 2,375 2,534 4,835 4,965
General and administrative   1,916   1,922   3,671   3,900
Total operating expenses   10,958   10,635   21,275   22,208
 
Loss from operations (3,049) (3,494) (4,097) (9,824)
 
Interest and other income, net   391   470   625   1,238
Loss before income taxes (2,658) (3,024) (3,472) (8,586)
Income tax expense   89   103   186   197
Net loss $ (2,747) $ (3,127) $ (3,658) $ (8,783)
 
Net loss per share:
Basic $ (0.10) $ (0.11) $ (0.13) $ (0.31)
Diluted $ (0.10) $ (0.11) $ (0.13) $ (0.31)
 
Weighted average shares outstanding:
Basic 28,754 28,531 28,748 28,491
Diluted 28,754 28,531 28,748 28,491
 
 

Sycamore Networks, Inc.

Reconciliation of GAAP to Non-GAAP Net Loss

(in thousands, except per share data)

         
Three Months Ended Six Months Ended

Jan 28, 2012

 

Jan 29, 2011

Jan 28, 2012

 

Jan 29, 2011

 
GAAP net loss $ (3,694) $ (3,505) $ (5,308) $ (10,044)
 
Stock-based compensation expense:
Cost of revenue 160 101 311 181
Research and development 381 60 764 207
Sales and marketing 182 109 392 278
General and administrative   224   108   454   256
Total stock based compensation expense 947 378 1,921 922
Restructuring expense:
Operating expense - - (271) -
Cost of revenue   -   -   -   339
 
Non-GAAP net loss $ (2,747) $ (3,127) $ (3,658) $ (8,783)




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