SAN JOSE, Calif. -- ONI Systems Corp. (Nasdaq:ONIS - news), a leading provider of optical telecommunications systems for the metropolitan and regional markets, today reported for the quarter ended March 31, 2002, net revenues of $21.0 million and a pro forma net loss of $(35.9) million, or $(0.26) per diluted share, excluding non-cash charges related to the amortization of deferred stock compensation and intangibles. This compares with net revenues of $45.1 million and a pro forma net loss of $(9.3) million, or $(0.07) per diluted share, in the first quarter of the prior year. Pro forma net loss in the first quarter of the prior year excludes non-cash charges related to the amortization of deferred stock compensation and goodwill and intangibles, and a one-time charge for in-process research and development associated with the acquisition of certain technology and other assets from Finisar Corporation. On a GAAP basis, ONI reported a net loss of $(42.2) million, or $(0.30) per diluted share, for the first quarter, compared with a net loss of $(31.1) million, or $(0.24) per diluted share, for the same period in the prior year. "ONI has been impacted by the continued and deepened industry wide downturn in capital expenditures by telecommunications carriers," stated Hugh Martin, chairman, president and CEO of ONI Systems. "We believe that our products remain superior to other next generation optical systems and that they are ideally positioned for the market that will inevitably recover from its current difficulties." Martin continued, "As announced previously, we plan to merge our business with CIENA Corporation. We believe that combining these two companies, who are both leaders in the next generation market, creates a new entity, that by virtue of its strong balance sheet, diversified customer base, experienced leadership team and all next generation product line, will be a true winner." ONI Systems Inc.