Q4 2001 net loss was $374.8 million, compared with a reported net loss of $89.7 million for the fourth quarter of 2000

February 7, 2002

2 Min Read

COLUMBIA, MD - Corvis Corporation (NASDAQ: CORV), a leading provider of intelligent optical networking solutions, today reported financial results for its fiscal fourth quarter ended December 29, 2001. Revenues for the fourth quarter of $15.2 million were generated by continued commercial deployment under the company's contracts with Broadwing Communications, Inc. and Williams Communications.

Pro forma net loss for the current quarter was $39.9 million, or $0.11 loss per share, excluding restructuring and other charges, goodwill and other intangible assets amortization expense and equity-based expense compared with a pro forma net loss of $23.9 million, or $0.07 loss per share for the fourth quarter of 2000. Reported net loss was $374.8 million, or $1.05 loss per share, for the current quarter as compared with a reported net loss of $89.7 million, or $0.27 loss per share for the fourth quarter of 2000.

"The past year was very challenging and was perhaps one of the more difficult years in the history of telecommunications," said Dr. David Huber, president and CEO. "Yet, during 2001, Corvis achieved a number of significant milestones including delivering the world's first all-optical network. We achieved these milestones while taking the steps required to align our business with the current market reality. While the market remains difficult, Corvis enters 2002 eager to meet the near term challenges and to build a strong long term business."

For fiscal year 2001, Corvis recorded revenue of $188.5 million as compared to $68.9 million for the prior year. Pro forma net loss for fiscal year 2001 was $135.3 million, or $0.39 per share as compared to $96.3 million, or $0.29 per share, for the same year ago period. Reported net loss for fiscal 2001 was $1,378.1 million, or $3.94 per share, as compared to $283.6 million, or $1.80 per share for the same year ago period.

"Corvis ended the fiscal year in solid financial position," said Lynn Anderson, senior vice president and chief financial officer. "Going forward, we intend to maintain our financial discipline and to continue to make the strategic decisions required to position the company for long-term success and profitability."

Fourth Quarter Restructuring and Other Charges In the fourth quarter, Corvis recorded restructuring and other charges totaling $303.4 million. These charges comprised the following: - $117.4 million charge associated with a write-down of excess and obsolete materials, excess purchase commitments, and the discontinuance of certain product lines

- $60.0 million charge related to recent workforce reductions, consolidation of excess facilities, and the write-down of idle equipment

- $122.4 million charge for the write-down of goodwill associated with the acquisition of Algety Telecom

- $3.6 million charge for the write-down of certain equity investments

Corvis Corp.

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