ONI Posts Up

SAN JOSE, Calif. -- ONI Systems Corp. (Nasdaq:ONIS - news), a leading provider of optical telecommunications systems for the metropolitan and regional markets, today reported financial results for the second quarter and six months ended June 30, 2001. Net revenues for the second quarter increased 51% to $68.2 million compared with revenues of $45.1 million in the first quarter of 2001. Pro forma net loss, excluding non-cash charges related to the amortization of deferred stock compensation and goodwill, for the quarter was $(6.7) million, or $(0.05) per diluted share. Revenues of $68.2 million compare with $9.5 million in the second quarter of 2000. Gross margin as a percentage of revenue for the quarter was 38.9% compared with 27.6% in the second quarter of 2000. The pro forma net loss of $(0.05) per diluted share for the quarter compares with $(0.18) per diluted share in the second quarter of 2000. "ONI's strong product acceptance continued as we added three new major customers in the second quarter -- including Dynegy Global Communications, Korea Telecom and SDN Communications -- all with plans for multi-city deployments. ONI's ONLINE products will be deployed by Dynegy in 18 cities. In addition, the ONLINE11000 gained significant customer traction as SDN selected it for deployment in more than 30 cities and Korea Telecom selected it to connect multiple cities throughout Korea," said Hugh Martin, chairman, president and chief executive officer, ONI Systems. "Our substantial revenue growth this quarter was also fueled by repeat revenue from 19 of the 21 customers we had at the end of Q1."ONI Systems Inc.