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Riverstone Networks reviews operating performance in employee town hall meeting
March 24, 2005
SANTA CLARA, Calif. -- Riverstone Networks (Pink Sheets:RSTN), a leading provider of Carrier Ethernet Networks, today provided an update on its business at its latest town hall meeting with employees.
"Thanks to the hard work and dedication of our employees, we are seeing positive momentum in our business," said Oscar Rodriguez, Riverstone's President and Chief Executive Officer. "The increased shipments and new wins achieved over the past six months demonstrate the confidence our customers have in Riverstone, our people and our products. With Riverstone's technology leadership, we are well-positioned to continue capturing the opportunities in our marketplace."
In today's town hall meeting, Mr. Rodriguez reviewed Riverstone's solid operating performance and opportunities for continued growth. In particular Mr. Rodriguez noted that over the past six months Riverstone has:
-- Achieved a double-digit increase in shipments. Riverstone shipped $14.5 million of hardware in the fourth fiscal quarter ended February 26, 2005; and $19.6 million in the previous quarter ended November 27, 2004. In the aggregate, this represents 22.6 percent growth over the prior six-month period, and 73.4 percent growth over the comparable six-month period a year ago. Fourth quarter shipments were diminished by a number of customer purchase orders that were received too late in the quarter for shipment as well as a factory stop ship imposed to correct an isolated component issue that was resolved shortly after the end of the quarter. Riverstone has shipped $3.0 million of hardware since the end of the fiscal year. Pending completion of the audit, the Company cannot provide a reconciliation of shipments to revenue stated in accordance with generally accepted accounting principles. As noted previously, Riverstone's carrier-customer sales cycles tend to be long, and the sales process on large transactions often extends for more than one quarter with completion shifting from one quarter to the next. The Company therefore believes that quarter-over-quarter comparisons do not provide an accurate representation of its performance and that longer-term trends are more indicative measures of its business.
The Company noted that more than half of its shipments for the past six months have been for products, including the Riverstone 15008, that enable its carrier-customers to deliver voice, video, and data ("triple-play") services. This demonstrates that Riverstone has established a strong foothold in this expanding segment of the communications industry. Riverstone Networks has long been at the forefront of innovation. To fortify its competitive position and further capitalize on triple-play opportunities, Riverstone also announced that it is building on the success of its 15008 product through the development of a new, lower cost next-generation MPLS/VPLS edge platform.
Riverstone Networks Inc.
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