UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
November 29, 2012 (November 27, 2012)
Date of Report (Date of earliest event reported)
SYCAMORE NETWORKS, INC.
(Exact name of registrant as specified in its charter)
Delaware | 000-27273 | 04-3410558 | ||
(State or other jurisdiction of incorporation) |
(Commission file number) |
(IRS Employer Identification No.) |
220 Mill Road
Chelmsford, MA 01824
(Address of principal executive offices)
(Zip code)
Registrants telephone number, including area code: (978) 250-2900
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02: Results of Operations and Financial Condition
On November 29, 2012, the Registrant reported its financial results for the first quarter ended October 27, 2012.
A copy of the press release issued by the Registrant with respect to the foregoing is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference herein.
The Registrant provides non-GAAP financial data in addition to providing financial results in accordance with generally accepted accounting principles (GAAP). These measures are not in accordance with or an alternative for GAAP, and may be different from non-GAAP measures used by other companies. The reconciliation between the GAAP basis and the non-GAAP basis financial data is provided in the table immediately following the Unaudited Condensed Consolidated Statements of Operations included in Exhibit 99.1. The Registrant believes that the items excluded from the non-GAAP results have one or more of the following characteristics: their magnitude and timing are largely outside of the Registrants control; they are unrelated to the ongoing operation of the business in the ordinary course; they are unusual, and the Registrant does not expect them to occur in the ordinary course of business; or they are non-operational, non-cash expenses involving equity grants.
The non-GAAP financial data is provided to enhance the readers overall understanding of the Registrants current financial performance and its prospects for the future. Specifically, the Registrant believes the non-GAAP results provide useful information to both management and investors by excluding certain expense and income items that the Registrant believes are not indicative of the Registrants core operating results. In addition, since the Registrant has historically reported non-GAAP results to the investment community, the Registrant 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 a more appropriate indicator of, operating results, cash flows, or other measures of financial performance prepared in accordance with GAAP.
The information contained herein and in the accompanying Exhibit 99.1 shall not be incorporated by reference into any filing of the Registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference into such filing. The information in this report, including Exhibit 99.1 hereto, shall not be deemed to be filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended.
Item 8.01: Other Events
On November 27, 2012, the Board of Directors of the Registrant approved a special cash distribution of $0.50 per share of common stock, par value $0.001 (the Common Stock). Each stockholder of record on December 10, 2012 will be entitled to receive $0.50 in cash for every share of Common Stock held by such stockholder. The special cash distribution will be paid on December 20, 2012. In accordance with NASDAQ Rule 11140(b), due to the amount of the special cash distribution the Registrant expects that the ex-dividend date will be December 6, 2012, which is two business days prior to the record date for the special cash distribution.
Item 9.01: Financial Statements and Exhibits
(d) Exhibits
Exhibit |
Description | |
99.1 | Press Release of the Registrant, dated November 29, 2012 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Sycamore Networks, Inc. |
/s/ Paul F. Brauneis |
Paul F. Brauneis |
Chief Financial Officer |
Vice President, Finance and Administration and Treasurer |
(Duly Authorized Officer and Principal |
Financial and Accounting Officer) |
Dated: November 29, 2012 |
Exhibit 99.1
CONTACT: |
| |
Robert Travis | Scott Larson | |
Investor Relations | Press Inquiries | |
Sycamore Networks, Inc. | Sycamore Networks, Inc. | |
978-250-3432 | 978-250-3433 | |
bob.travis@sycamorenet.com | scott.larson@sycamorenet.com |
SYCAMORE NETWORKS, INC. REPORTS FIRST QUARTER FISCAL YEAR 2013 FINANCIAL RESULTS
Board of Directors Approves Special Cash Distribution of $0.50 Per Share
CHELMSFORD, Mass., November 29, 2012 Sycamore Networks, Inc. (NASDAQ: SCMR), today reported its results for the first quarter ended October 27, 2012. Revenue for the first quarter of fiscal 2013 was $12.1 million, compared with $15.4 million for the first quarter of fiscal 2012.
Net loss for the first quarter of fiscal 2013, on a generally accepted accounting principles (GAAP) basis, was $6.8 million, or $0.23 per share, compared with a GAAP net loss of $1.6 million, or $0.06 per share, for the first quarter of fiscal 2012.
Non-GAAP net loss for the first quarter of fiscal 2013 was $3.9 million, or $0.14 per share, compared with a non-GAAP net loss of $0.9 million, or $0.03 per share for the first quarter of fiscal 2012. The reconciliation between net loss on a GAAP basis and net loss on a non-GAAP basis is provided in the table immediately following the Unaudited Condensed Consolidated Statements of Operations included with this press release.
The Company also announced that, on November 27, 2012, its Board of Directors approved a special cash distribution of $0.50 per share of its common stock. The special cash distribution will be paid on December 20, 2012 to stockholders of record as of December 10, 2012. Given the amount of the special cash distribution, the Company expects that the ex-dividend date for the special cash distribution will be December 6, 2012, which is two business days prior to the record date for the special cash distribution.
The Company also announced it will not be holding a conference call with investors regarding its first quarter results.
About Sycamore Networks
Sycamore Networks, Inc. (NASDAQ: SCMR) develops and markets intelligent bandwidth management solutions for fixed line and mobile network operators worldwide. Sycamore products enable network operators to efficiently and cost-effectively provision and manage network capacity to support a wide range of converged services such as voice, video and data. Our global customer base includes Tier 1 service providers, government agencies, and utility companies. For more information, please visit www.sycamorenet.com.
Use of Non-GAAP Financial Measures
The Company provides non-GAAP financial data in addition to providing financial results in accordance with generally accepted accounting principles (GAAP). These measures are not in accordance with or an alternative for GAAP, and may be different from non-GAAP measures used by other companies. The Company believes that the items excluded from the non-GAAP results have one or more of the following characteristics: their magnitude and timing are largely outside of the Companys 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.
The non-GAAP financial data is provided to enhance the readers overall understanding of the Companys 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 Companys core operating results. 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 a more appropriate indicator of, operating results, cash flows, or other measures of financial performance prepared in accordance with GAAP.
Caution Regarding Forward-Looking Statements
We wish to caution you that certain matters discussed in this press release may constitute forward-looking statements, as defined under the federal securities laws. Risks and uncertainties relating to the Companys 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 impact of the announcement of the sale of substantially all of the assets of our Intelligent Bandwidth Management business (the Asset Sale) and the dissolution of the Company on the trading price of our common stock and our business and on our relationships with our customers, suppliers and employees; our ability to successfully close the Asset Sale and the timing of such closing; difficulties associated with identifying, analyzing or consummating strategic alternatives with respect to our IQstream® business and our other remaining non-cash assets; our inability to predict the timing, amount or nature of any additional cash distributions to stockholders; the Companys reliance on a limited number of customers; industry pricing pressures; the consolidation of both suppliers and customers in the telecommunications marketplace; and general economic conditions. More information about potential factors that could affect the Companys business and financial results is included in the section entitled Risk Factors in the Companys 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)
October 27, 2012 |
July 31, 2012 |
|||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 105,608 | $ | 136,654 | ||||
Short-term investments |
39,938 | 234,965 | ||||||
Accounts receivable, net |
5,720 | 7,785 | ||||||
Inventories |
8,836 | 8,469 | ||||||
Prepaid and other current assets |
828 | 1,589 | ||||||
|
|
|
|
|||||
Total current assets |
160,930 | 389,462 | ||||||
Property and equipment, net |
3,705 | 4,276 | ||||||
Long-term investments |
0 | 67,774 | ||||||
Other assets |
348 | 422 | ||||||
|
|
|
|
|||||
Total Assets |
$ | 164,983 | $ | 461,934 | ||||
|
|
|
|
|||||
Liabilities and Stockholders Equity |
||||||||
Current liabilities: |
||||||||
Deferred revenue |
$ | 5,296 | $ | 7,871 | ||||
Other current liabilities |
8,849 | 8,401 | ||||||
|
|
|
|
|||||
Total current liabilities |
14,145 | 16,272 | ||||||
Long term deferred revenue |
1,391 | 1,469 | ||||||
Long term liabilities |
1,965 | 1,962 | ||||||
|
|
|
|
|||||
Total liabilities |
17,501 | 19,703 | ||||||
|
|
|
|
|||||
Common stock |
29 | 29 | ||||||
Additional paid-in capital |
1,301,414 | 1,589,357 | ||||||
Accumulated deficit |
(1,153,638 | ) | (1,146,882 | ) | ||||
Accumulated other comprehensive loss |
(323 | ) | (273 | ) | ||||
|
|
|
|
|||||
Total stockholders equity |
147,482 | 442,231 | ||||||
|
|
|
|
|||||
Total Liabilities and Stockholders Equity |
$ | 164,983 | $ | 461,934 | ||||
|
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|
|
Sycamore Networks, Inc.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended | ||||||||
Oct 27, 2012 |
Oct 29, 2011 |
|||||||
Revenue |
$ | 12,064 | $ | 15,380 | ||||
Cost of revenue |
4,903 | 6,262 | ||||||
|
|
|
|
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Gross profit |
7,161 | 9,118 | ||||||
|
|
|
|
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Operating expenses: |
||||||||
Research and development |
6,489 | 6,485 | ||||||
Sales and marketing |
2,381 | 2,670 | ||||||
General and administrative |
3,087 | 1,985 | ||||||
Asset impairment |
| | ||||||
Restructuring |
1,988 | (271 | ) | |||||
|
|
|
|
|||||
Total operating expenses |
13,945 | 10,869 | ||||||
|
|
|
|
|||||
Loss from operations |
(6,784 | ) | (1,751 | ) | ||||
Interest and other income, net |
201 | 234 | ||||||
|
|
|
|
|||||
Loss before income taxes |
(6,583 | ) | (1,517 | ) | ||||
Income tax expense (benefit) |
173 | 97 | ||||||
|
|
|
|
|||||
Net loss |
$ | (6,756 | ) | $ | (1,614 | ) | ||
|
|
|
|
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Net loss per share: |
||||||||
Basic |
$ | (0.23 | ) | $ | (0.06 | ) | ||
Diluted |
$ | (0.23 | ) | $ | (0.06 | ) | ||
Weighted average shares outstanding: |
||||||||
Basic |
28,881 | 28,741 | ||||||
Diluted |
28,881 | 28,741 |
Sycamore Networks, Inc.
Reconciliation of Selected GAAP-based Measures to Non-GAAP-based Measures
(in thousands, except per share data)
Three Months Ended | ||||||||
Oct 27, 2012 |
Oct 29, 2011 |
|||||||
GAAP gross profit |
$ | 7,161 | $ | 9,118 | ||||
Less: |
||||||||
Stock-based compensation expense |
128 | 151 | ||||||
|
|
|
|
|||||
Non-GAAP gross profit |
$ | 7,289 | $ | 9,269 | ||||
|
|
|
|
|||||
GAAP operating expenses |
$ | 13,945 | $ | 10,869 | ||||
Less: |
||||||||
Restructuring |
1,988 | (271 | ) | |||||
Stock-based compensation expense-R&D |
330 | 383 | ||||||
Stock-based compensation expense-S&M |
165 | 210 | ||||||
Stock-based compensation expense-G&A |
217 | 230 | ||||||
|
|
|
|
|||||
Non-GAAP operating expenses |
$ | 11,245 | $ | 10,317 | ||||
|
|
|
|
|||||
GAAP loss from operations |
$ | (6,784 | ) | $ | (1,751 | ) | ||
Less: |
||||||||
Restructuring |
1,988 | (271 | ) | |||||
Stock-based compensation expense |
840 | 974 | ||||||
|
|
|
|
|||||
Non-GAAP loss from operations |
$ | (3,956 | ) | $ | (1,048 | ) | ||
|
|
|
|
|||||
GAAP net loss |
$ | (6,756 | ) | $ | (1,614 | ) | ||
Less: |
||||||||
Restructuring |
1,988 | (271 | ) | |||||
Stock-based compensation expense |
840 | 974 | ||||||
|
|
|
|
|||||
Non-GAAP net loss |
$ | (3,928 | ) | $ | (911 | ) | ||
|
|
|
|
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GAAP net loss per share: |
||||||||
Basic |
$ | (0.23 | ) | $ | (0.06 | ) | ||
Diluted |
$ | (0.23 | ) | $ | (0.06 | ) | ||
Less: |
||||||||
Restructuring |
$ | 0.07 | $ | (0.01 | ) | |||
Stock-based compensation expense |
$ | 0.03 | $ | 0.04 | ||||
Non-GAAP net loss per share: |
||||||||
Basic |
$ | (0.14 | ) | $ | (0.03 | ) | ||
Diluted |
$ | (0.14 | ) | $ | (0.03 | ) |
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