Earnings reports

Corvis Posts $1.4M Quarter

Corvis Corp. (Nasdaq: CORV) third-quarter revenues dropped 94 percent from a year ago, as sales of the company's long-haul optical switches are virtually nonexistent.

The company's revenues for the quarter ended September 28 were $1.4 million, down from the $24.2 million it reported during the year-ago quarter.

Alarming? Not really. The company cited more than $500 million in cash and investments, so it has plenty of cushion.

The company currently has 883 employees, which puts its monthly revenue per employee (one metric used to measure a company's productivity) at $528.

The situation didn't appear to rattle David Huber, chairman and CEO. "In these difficult times for the telecommunications sector, Corvis continues to make progress," said Huber in the company press release.

But some investors might be asking: "What progress?" Corvis's actual net loss for the quarter was $127.4 million, or 31 cents a share, compared to a loss of $80.6 million, or 23 cents a share, for the year-ago quarter.

The company's revenues came from service contracts with Broadwing Inc. (NYSE: BRW) and France Telecom SA (NYSE: FTE).

Corvis's pro forma net loss for the quarter was $48.4 million, or 12 cents a share, versus a pro forma net loss of $40.3 million, or 11 cents a share, a year ago.

Things will get better, Corvis says. Next quarter, the company says its revenue will "increase sequentially."

Corvis again announced it would cut jobs from its French subsidiaries, affecting a total of 164 jobs out of the 200 workers there by early fiscal 2003. It expects to save $20 million annually because of the restructuring there.

The company also added two new board members: Freeman A. Hrabowski, president of the University of Maryland, and Donald R. Walker, former CEO of computer security firm Veritect. Joseph R. Hardiman, David S. Oros, and Huber are the other board members.

Corvis also announced it would buy back up to $25 million worth of its common stock, about 10 percent of the company's outstanding shares.

Bright spots in the quarter include a complete trial where Corvis successfully upgraded a transoceanic cable, using the gear it acquired from Dorsal Networks. "This is a major milestone in our subsea strategy," Huber says.

Corvis also formed a government solutions unit and announced its first government contract. Huber says the contracts Corvis has are for products, not just for government research and development purposes.

Overall, Huber says Corvis is sitting pretty, even if its earnings don't bear that out. "Our interaction with major quality carriers has never been higher," he says.

— Phil Harvey, Senior Editor, Light Reading
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PastTense 12/4/2012 | 9:25:34 PM
re: Corvis Posts $1.4M Quarter Yes, but not exclusively. Inverse muxing is more secure, so it applies to certain applications.
flanker 12/4/2012 | 9:25:46 PM
re: Corvis Posts $1.4M Quarter Do they still inverse mux 4 x OC-48?

optical_leaders 12/4/2012 | 9:25:57 PM
re: Corvis Posts $1.4M Quarter "I'd like to see an analyst that says Corvis ULH and optical gear is better than Innovance... I doubt there's a single one out there who's tinkered with both, and we know Innovance gear is much newer..."

While I agree with statement regarding Corvis and Innovance I think in terms of real 3rd Generation DWDM (ULH + 40G) you cannot look past Lucent's LambdaXtreme...

Also just to jump on the "kick Corvis" bandwagon -how long did it take them to get 10G working on their WDM platform - for that matter is it working?
rzerockzeron 12/4/2012 | 9:26:09 PM
re: Corvis Posts $1.4M Quarter Love the italic font...makes the arguments more sensitive...

It's also sort of silly to imply that companies are buying Corv technology that they don't really want just because there are some ownership options attached. Your claim is that the carriers are saying "Well, we don't really like your products, and we don't really want to buy them, but we'd LOVE to invest in your company that makes products we don't like, so give us some products too!" Doesn't make sense. Investing and buying are both validations of interest.

Carriers did not invest. They were OFFERED options in return of contracts. That's a win-win for any company, don't you think?

Ask Matt Bross at WCG...
ansa101 12/4/2012 | 9:26:11 PM
re: Corvis Posts $1.4M Quarter waist
I mean waste...
ansa101 12/4/2012 | 9:26:11 PM
re: Corvis Posts $1.4M Quarter Corvis is in hibernation right now - and until they come out of the den, we might as well pack up and go home

I totally agree with you..
It's a total waist of time...
jimmy 12/4/2012 | 9:26:12 PM
re: Corvis Posts $1.4M Quarter Was is more than the $1.4M Corvis had in revenue last quarter? I think so....

Were there any other 'customers' who personally prospered from Corvis warrants? Anyone know?
fusionboy 12/4/2012 | 9:26:19 PM
re: Corvis Posts $1.4M Quarter Ksig looks more and more right. The tone here seems to get worse every day.

And it will continue too as long as there is little new with Corvis. What news has there been in the past year (good news that is) A new government contract of a couple mil - that Q didn't cancel all of their contract? Corvis is in hibernation right now - and until they come out of the den, we might as well pack up and go home.
bitdropper 12/4/2012 | 9:26:23 PM
re: Corvis Posts $1.4M Quarter "I suppose that begs the question of why I post at all."



Again, I apologize for any misinterpretation of your motives.

The message I got from your posts, was that anyone who goes to that much trouble to put such a positive spin on a $1.4M quarter and a bleak prognosis, is either boundlessly optimistic, or has a hidden agenda. If it's the former, I find it admirable, but very naive and unrealistic. If it's the latter, I find it again naive and unrealistic, but this time without the admiration.

If there's another possibility, I must have missed it. Please continue to post as you see fit, but please consider the credibility cost of too much unsubstantiated optimism.

Good posting,

dave77777 12/4/2012 | 9:26:24 PM
re: Corvis Posts $1.4M Quarter I suppose that begs the question of why I post at all. At first, I was just look for more info on an investment. Then I noticed a lot of posts that were just obviously wrong: "Corvis only has 2 customers" "Corvis eq doesn't work" "Corvis will BK in 2002" "Carriers only bought Corv because they were investors" "Corvis' accounting is flawed" etc, etc, some through apparent simple ignorance, others clearly intentional misrepresentations by vindictive ex-employees who are upset because they were fired. I suppose I didn't realize how futile it is to try to stem the flood of misinformation out there.

Ksig looks more and more right. The tone here seems to get worse every day.
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