This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

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

Caution Regarding Forward-Looking Statements

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)

   
July 31, 2012 July 31, 2011
Assets
 
Current assets:
Cash and cash equivalents $ 136,654 $ 60,765
Short-term investments 234,965 335,847
Accounts receivable, net 7,785 8,764
Inventories 8,469 11,537
Prepaid and other current assets   1,589   1,770
Total current assets 389,462 418,683
 
Property and equipment, net 4,276 5,978
Long-term investments 67,774 44,786
Other assets   422   290
Total Assets $ 461,934 $ 469,737
 
Liabilities and Stockholders' Equity
 
Current liabilities:
Deferred revenue $ 7,871 $ 9,141
Other current liabilities   8,401   8,325
Total current liabilities 16,272 17,466
 
Long term deferred revenue 1,469 1,812
Long term liabilities   1,962   1,702
Total liabilities   19,703   20,980
 
Common stock 29 29
Additional paid-in capital 1,589,357 1,583,124
Accumulated deficit (1,146,882) (1,133,958)
Other equity   (273)   (438)
Total stockholders' equity   442,231   448,757
Total Liabilities and Stockholders' Equity $ 461,934 $ 469,737
 
 

Sycamore Networks, Inc.

Unaudited Condensed Consolidated Statements of Operations

(in thousands, except per share data)

       
Three Months Ended Twelve Months Ended

July 31, 2012

July 31, 2011

July 31, 2012

July 31, 2011

 
Revenue $ 16,799 $ 12,959 $ 57,285 $ 48,688
Cost of revenue   7,179   5,627   24,331   22,510
Gross profit   9,620   7,332   32,954   26,178
 
Operating expenses:
Research and development 6,470 6,635 27,190 26,619
Sales and marketing 2,752 2,614 10,444 10,755
General and administrative 2,568 1,932 8,759 8,194
Asset impairment 790 - 790 -
Restructuring   -   -   (271)   -
Total operating expenses   12,580   11,181   46,912   45,568
 
Loss from operations (2,960) (3,849) (13,958) (19,390)
 
Interest and other income, net   233   312   1,098   1,950
Loss before income taxes (2,727) (3,537) (12,860) (17,440)
Income tax expense (benefit)   (202)   81   64   358
Net loss $ (2,525) $ (3,618) $ (12,924) $ (17,798)
 
Net loss per share:
Basic $ (0.09) $ (0.13) $ (0.45) $ (0.62)
Diluted $ (0.09) $ (0.13) $ (0.45) $ (0.62)
 
Weighted average shares outstanding:
Basic 28,879 28,692 28,807 28,567
Diluted 28,879 28,692 28,807 28,567
 
 

Sycamore Networks, Inc.

Reconciliation of Selected GAAP-based Measures to Non-GAAP-based Measures

(in thousands, except per share data)

       
Three Months Ended Twelve Months Ended

July 31, 2012

July 31, 2011

July 31, 2012

July 31, 2011

 
GAAP gross profit $ 9,620 $ 7,332 $ 32,954 $ 26,178
Less:
Restructuring - - - 339
Stock-based compensation expense   152   170   618   466
Non-GAAP gross profit $ 9,772 $ 7,502 $ 33,572 $ 26,983
 
GAAP operating expenses $ 12,580 $ 11,181 $ 46,912 $ 45,568
Less:
Restructuring - - (271) -
Stock-based compensation expense-R&D 363 386 1,519 848
Stock-based compensation expense-S&M 178 256 749 719
Stock-based compensation expense-G&A 224 259 903 718
Asset impairment   790   -   790   -
Non-GAAP operating expenses $ 11,025 $ 10,280 $ 43,222 $ 43,283
 
GAAP loss from operations $ (2,960) $ (3,849) $ (13,958) $ (19,390)
Less:
Restructuring - - (271) 339
Stock-based compensation expense 917 1,071 3,789 2,751
Asset impairment   790   -   790   -
Non-GAAP loss from operations $ (1,253) $ (2,778) $ (9,650) $ (16,300)
 
GAAP net loss $ (2,525) $ (3,618) $ (12,924) $ (17,798)
Less:
Restructuring - - (271) 339
Stock-based compensation expense 917 1,071 3,789 2,751
Asset impairment 790 - 790 -
Income tax   (107)   -   (107)   -
Non-GAAP net loss $ (925) $ (2,547) $ (8,723) $ (14,708)
 
GAAP net loss per share:
Basic $ (0.09) $ (0.13) $ (0.45) $ (0.62)
Diluted $ (0.09) $ (0.13) $ (0.45) $ (0.62)
 
Less:
Restructuring $ 0.00 $ 0.00 $ (0.01) $ 0.01
Stock-based compensation expense $ 0.03 $ 0.04 $ 0.13 $ 0.10
Asset impairment $ 0.03 $ 0.00 $ 0.03 $ 0.00
Income tax $ 0.00 $ 0.00 $ 0.00 $ 0.00
 
Non-GAAP net loss per share:
Basic $ (0.03) $ (0.09) $ (0.30) $ (0.51)
Diluted $ (0.03) $ (0.09) $ (0.30) $ (0.51)




3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs