Netro Corporation (Nasdaq:NTRO), a leading provider of fixed broadband wireless access networks, today announced revenues of $6.4 million for the quarter ending December 31, 2001, a sequential increase of 7% over revenues of $6.0 million for the third quarter of 2001 and a decrease of 71% from the same period in 2000. Net loss for the fourth quarter of 2001 was $9.5 million or $(0.18) per share, compared to a loss of $2.5 million, or $(0.05) per share for the fourth quarter of 2000.
Annual revenues for the fiscal year ending December 31, 2001 were $23.7 million compared to $68.5 million for 2000, a 65% year-over-year decrease. Cash balances at December 31, 2001 were $326.3 million or $6.22 per basic share, reflecting a use of $8.1 million in cash during the period.
"While we are pleased to report continuing sequential revenue growth, we remain unhappy with the overall performance of our business during 2001. The year 2001 represented a weak environment for capital spending, contraction in the telecommunications industry and economies beginning to go into recession. Each of these factors had an effect on our performance in 2001 and, unfortunately, they continue to carry over into our outlook for the first half of 2002. First quarter 2002 revenues will be negatively affected by this continued weak environment as well as the economic and political instability in Latin America, our largest market," said Sanjay Khare, Netro's Chief Financial Officer.
"Although the telecommunications equipment market remains a challenging one, and visibility remains cloudy, we are confident that we have strategically positioned Netro for an effective recovery when the economic environment becomes more attractive. First, we have carefully managed the AirStar business; cash expenditures over the last two quarters, were a combined total of less than $12 million, although quarterly cash expense will increase significantly as a result of our recent acquisition of AT&T Wireless' fixed wireless equipment business.
"Second, we have initiated radical cost reductions on our AirStar customer premise equipment, which continue to be on track for initial shipments in the first half of 2002 and gross margin contributions during the second half of 2002.
"Finally, and perhaps most importantly, with our agreement to acquire AT&T Fixed Wireless' Project Angel, we have enabled ourselves to expand into the international residential and small business market which we believe will drive volumes when the market recovers. We are excited about this opportunity to offer leading, field-proven, Non Line of Sight (NLOS) technology. With Angel we now offer the industry's broadest range of low and high frequency products for offering cost effective point to multipoint solutions. This solution targets business and residential end users and backhaul infrastructure. Our strategic vision is to be the leader in the broadband fixed wireless market and we believe that we are well positioned to do so," said Gideon Ben-Efraim Chairman and CEO of Netro Corporation.