EX-99 3 bos289012.txt EXHIBIT 99.1 Exhibit 99.1 FOR IMMEDIATE RELEASE [GRAPHIC LOGO OMITTED] SYCAMORE NETWORKS, INC. CONTACT: Press Inquiries Investor Inquiries Scott Larson Andrew Kramer Public Relations Investor Relations Sycamore Networks, Inc. Sycamore Networks, Inc. 978-250-3433 978-367-7368 scott.larson@sycamorenet.com andy.kramer@sycamorenet.com ---------------------------- --------------------------- SYCAMORE NETWORKS, INC. REPORTS FIRST QUARTER FISCAL YEAR 2004 FINANCIAL RESULTS CHELMSFORD, Mass., November 11, 2003 - Sycamore Networks, Inc. (NASDAQ: SCMR), a leader in intelligent optical networking, today reported its first quarter results for the period ended October 25, 2003. Revenue for the first quarter of fiscal 2004 was $8.4 million, compared with $5.9 million for the first quarter of fiscal 2003. Net loss for the first quarter of fiscal 2004, on a generally accepted accounting principles (GAAP) basis, was $12.2 million or $(0.05) per share, compared with a net loss of $17.4 million, or $(0.07) per share for the first quarter of fiscal 2003. Pro forma net loss, a non-GAAP financial measure, for the first quarter of fiscal 2004 was $10.7 million, or $(0.04) per share, compared with a pro forma net loss of $15.0 million, or $(0.06) per share for the first quarter of fiscal 2003. The reconciliation between net loss on a GAAP basis and pro forma net loss is provided in a table immediately following the Unaudited Consolidated Statements of Operations. "Sycamore's first quarter financial results reflect efforts to balance strategic investments in the business with expense management and cash preservation," stated Daniel E. Smith, Sycamore's president and chief executive officer. "Despite challenging market conditions, we continue to support initiatives covering technology innovation, customer relationships and financial management." Conference Call Webcast Sycamore plans to review its first quarter results and discuss its business outlook during a conference call today beginning at 4:30 p.m. EST. A Webcast of the conference call, along with GAAP reconciliation information, is available to all interested parties on the Sycamore web site located at www.sycamorenet.com under the Investor Relations section. Interested investors are encouraged to log onto the broadcast at least 15 minutes prior to the call. Participating in the call will be Sycamore's president and chief executive officer, Daniel E. Smith and chief financial officer, Frances M. Jewels. About Sycamore Networks Sycamore Networks, Inc. (NASDAQ: SCMR) develops and markets optical networking products for telecommunications service providers worldwide. The Company's products enable service providers to easily and cost-effectively transition their existing fiber optic network into an infrastructure that can provision, manage and deliver economic, high-bandwidth services to their customers. For more information, please visit www.sycamorenet.com. Except for the historical information contained herein, we wish to caution you that certain matters discussed in this news release constitute forward-looking statements that involve risks and uncertainties. Actual results or events could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to the rate of product purchases by current and prospective customers; the commercial success of the Company's line of intelligent optical networking products; the Company's reliance on a limited number of customers; new product introductions and enhancements by the Company and its competitors; the length and variability of the sales cycles for the Company's products; competition; manufacturing and sourcing risks; variations in the Company's quarterly results; general economic conditions including stock market volatility and capital market conditions as well as conditions specific to the telecommunications, Internet and related industries; and the other factors discussed in the Company's most recently filed Form 10-K and Form 10-Q, and the other reports filed by the Company from time to time 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. Use of Non-GAAP Financial Measures The Company provides pro forma financial data in addition to providing financial results in accordance with GAAP. These measures are not in accordance with, or an alternative for GAAP, and may be different from pro forma measures used by other companies. The items excluded from pro forma results have one or more of the following characteristics: their magnitude and timing is largely outside of the Company's control; they are unrelated to the ongoing operation of the business in the ordinary course; they are unusual, and the Company does not expect them to occur in the ordinary course of business; or they are non-operational, non-cash expenses involving stock option grants primarily in connection with the Company's initial public offering and acquisitions. The non-GAAP financial data is provided to enhance the user's overall understanding of the Company's current financial performance and its prospects for the future. Specifically, the Company believes the non-GAAP results provide useful information to both management and investors by excluding certain expense and income items that the Company believes are not indicative of the Company's core operating results because such charges are associated with past events and are not related to current operations. In addition, since the Company has historically reported non-GAAP results to the investment community, the Company believes the inclusion of non-GAAP numbers provides consistency in its financial reporting. Further, these non-GAAP results are one of the primary indicators management uses for planning and forecasting in future periods. The non-GAAP financial data should be considered in addition to, not as a substitute for or as being superior to, operating losses, cash flows, or other measures of financial performance prepared in accordance with GAAP.
Sycamore Networks, Inc. Unaudited Condensed Consolidated Balance Sheets (in thousands) October 25, 2003 July 31, 2003 ---------------- ------------- Assets Current assets: Cash and cash equivalents $ 221,539 $ 250,595 Short-term investments 428,636 421,784 Accounts receivable, net 7,374 10,769 Inventories 7,311 5,117 Prepaids and other current assets 4,491 3,680 ----------- ----------- Total current assets 669,351 691,945 Property and equipment, net 12,176 14,589 Long-term investments 336,674 323,204 Other assets 2,567 2,890 ----------- ----------- Total Assets $ 1,020,768 $ 1,032,628 =========== =========== Liabilities and Stockholders' Equity Deferred revenue $ 2,629 $ 2,677 Other current liabilities 18,853 18,350 Restructuring liabilities 17,233 19,086 ----------- ----------- Total current liabilities 38,715 40,113 Common stock 272 272 Additional paid-in capital 1,734,576 1,733,476 Accumulated deficit (748,369) (736,192) Other equity (4,426) (5,041) ----------- ----------- Total stockholders' equity 982,053 992,515 ----------- ----------- Total Liabilities and Stockholders' Equity $ 1,020,768 $ 1,032,628 =========== ===========
Sycamore Networks, Inc. Unaudited Consolidated Statements of Operations (in thousands, except per share data) Three Months Ended October 25, October 26, 2003 2002 ---- ---- Revenue $ 8,441 $ 5,938 Cost of revenue 5,719 7,143 Stock-based compensation 180 356 Payroll tax on stock option exercises 5 -- --------- --------- Gross profit (loss) 2,537 (1,561) Operating expenses: Research and development 11,297 13,923 Sales and marketing 4,410 4,941 General and administrative 1,968 1,658 Stock-based compensation 1,305 2,017 Payroll tax on stock option exercises 2 5 --------- --------- Total operating expenses 18,982 22,544 Loss from operations (16,445) (24,105) Interest and other income, net 4,268 6,743 --------- --------- Net loss $ (12,177) $ (17,362) ========= ========= Diluted net loss per share $ (0.05) $ (0.07) Weighted average shares used in computing diluted net loss per share 270,474 262,300
Sycamore Networks, Inc. Unaudited Pro Forma Consolidated Statements of Operations (a Non-GAAP Financial Measure) (a) (in thousands, except per share data) Three Months Ended October 25, 2003 Three Months Ended October 26, 2002 Pro Forma Pro Forma GAAP Results GAAP Results Results Adjustments (Non-GAAP)(a) Results Adjustments (Non-GAAP)(a) ------- ----------- ------------ ------- ----------- ------------ Revenue $ 8,441 $ -- $ 8,441 $ 5,938 $ -- $ 5,938 Cost of revenue 5,719 -- 5,719 7,143 -- 7,143 Stock-based compensation 180 (180) -- 356 (356) -- Payroll tax on stock option exercises 5 (5) -- -- -- -- --------- --------- --------- --------- --------- --------- Gross profit (loss) 2,537 185 2,722 (1,561) 356 (1,205) Operating expenses: Research and development 11,297 -- 11,297 13,923 -- 13,923 Sales and marketing 4,410 -- 4,410 4,941 -- 4,941 General and administrative 1,968 -- 1,968 1,658 -- 1,658 Stock-based compensation 1,305 (1,305) -- 2,017 (2,017) -- Payroll tax on stock option exercises 2 (2) -- 5 (5) -- --------- --------- --------- --------- --------- --------- Total operating expenses 18,982 (1,307) 17,675 22,544 (2,022) 20,522 Loss from operations (16,445) 1,492 (14,953) (24,105) 2,378 (21,727) Interest and other income, net 4,268 -- 4,268 6,743 -- 6,743 --------- --------- --------- --------- --------- --------- Net loss $ (12,177) $ 1,492 $ (10,685) $ (17,362) $ 2,378 $ (14,984) ========= ========= ========= ========= ========= ========= Diluted net loss per share $ (0.05) $ (0.04) $ (0.07) $ (0.06) Weighted average shares used in computing diluted net loss per share 270,474 270,474 262,300 262,300
(a) These Unaudited Pro Forma Consolidated Statements of Operations (a Non-GAAP Financial Measure) are for informational purposes only and are not presented in accordance with GAAP. The adjustments necessary to provide a direct reconciliation of the Non-GAAP Financial Measure to GAAP basis consolidated statements of operations exclude stock-based compensation and payroll taxes on stock option exercises included in gross profit (loss) and operating expenses.