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8-K - FORM 8-K - SYCAMORE NETWORKS INCd446122d8k.htm

Exhibit 99.1

 

CONTACT:   

LOGO

 

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 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.

The non-GAAP financial data is provided to enhance the reader’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. 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 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 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 Company’s 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 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)

 

     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   
  

 

 

   

 

 

 


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   
  

 

 

   

 

 

 

Gross profit

     7,161        9,118   
  

 

 

   

 

 

 

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
  

 

 

   

 

 

 

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
  

 

 

   

 

 

 

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