Sycamore landed two big carriers -- NTT Corp. and KPNQwest NV (Nasdaq/Amsterdam: KQIP) -- as new customers during the quarter. But its financial results attest to the difficulty it is having in the aftermath of so many failed data-focused carriers, which were Sycamore's bread and butter early on (see Sycamore: Sick No More?).
The company's pro forma net loss for the quarter -- which doesn't include things such as deferred stock compensation, payroll tax on stock option exercises, and a provision for doubtful accounts -- was $29.0 million or 12 cents a share, compared to pro forma net income of $11.5 million or 4 cents a share for the year-ago period.
Sycamore's actual net loss for the fourth quarter was $42.2 million, or 17 cents a share, versus a profit of $7.4 million or 3 cents a share for the year-ago period.
During the quarter, Sycamore recorded a charge of $4.6 million thanks to some bills unpaid by 360networks Inc. (Toronto: TSX). The dying carrier made up 11 percent of Sycamore's sales for the year.
The company's guidance for next quarter was ghastly. For its first quarter of fiscal 2002, Sycamore expects revenues to be in the $30 to $40 million range. Even if Sycamore hits the top number in that range, its revenues will have dropped 67 percent from the $120.4 million it reported in the first quarter of fiscal 2001.
For the fiscal year 2001, Sycamore reported a pro forma net loss of $24 million or 10 cents a share, as opposed to a pro forma profit of $15 million or 6 cents a share for fiscal 2000. The company's actual net loss for fiscal 2001 was $279.8 million or $1.18 a share, compared to a $700,000 profit, break even on a per-share basis, for fiscal 2000.
Sycamore also announced a management change during the call. Jon Reeves, who founded Sirocco Systems, left Sycamore and will be replaced by Jim Mooney, the product marketing VP for Sycamore's optical edge business.
Reeves, who is stepping down as vice president and general manager of Sycamore's optical edge business, joined Sycamore last summer when it paid $2.9 billion for Sirocco Systems. Interestingly, Sycamore is only worth $1.36 billion today -- less than half what it paid for a startup with no sales a little more than a year ago.
Sycamore also gave a glimpse of its vendor financing activity. The company has $200 million in commitments to CoreExpress Inc. and Storm Telecommunications Ltd., but only $73 million has been drawn down and only about $5 million has been recognized in Sycamore's revenues. Frances M. Jewels, Sycamore's chief financial officer, says the company will no longer provide vendor financing to anyone other than CoreExpress and Storm.
Sycamore shares dropped 0.50 (9%) to 5.00 in trading Tuesday.
- Phil Harvey, Senior Editor, Light Reading