Avici pares Q4 loss; Tellabs sees sales stabilizing

Avici Systems Inc. and Tellabs Inc. this week reported results for the fourth quarter and full year of 2001 amidst an environment of reduced spending by service providers.

Avici posted revenue of US$9.2 million, compared with $10.3 million for the third quarter. Pro forma net loss was $16.3 million, or 33 cents per share, compared with pro forma net loss of $19.4 million, or 39 cents per share, in the third quarter of 2001, and a pro forma net loss of $12.5 million, or 26 cents per share, for the fourth quarter of 2000.

Avici's fourth quarter 2001 loss was lower than analyst expectations of 36 cents per share. Revenue for the year ended Dec. 31, 2001, were $56.6 million, compared to $15.9 million for the year ended December 31, 2000, an increase of 256 percent. Pro forma net loss for 2001 was $59 million or $1.20 per share, compared with $58.8 million or $1.41 per share during 2000.

Actual net loss, including charges and other items, was $21.2 million, or 43 cents per share, and $95.5 million, or $1.94 per share, for the fourth quarter and year, respectively.

Avici provided no guidance into the first quarter of 2002, due to limited visibility and the long evaluation cycles of carriers in trials with its TSR and SSR router products.

Investment firm UBS Warburg LLC says there are 14 such trials. The firm does not expect Avici to become profitable until the second half of 2004.

Tellabs ended 2001 with fourth quarter sales of $470 million, up 5 percent sequentially due to strong sales of its optical networking products, particularly the Titan 5000 series. Revenues were down 54 percent from the fourth quarter of 2000, however.

"We are encouraged to see signs of stability in the U.S., driven by customer demand for Tellabs' metro optical networking products," said Tellabs President and CEO Richard C. Notebaert.

The company reported pro forma fourth quarter 2001 earnings of $14 million, or 3 cents per share, which was a penny better than analyst estimates and 2 cents better than the third quarter of 2001. But it was down substantially from the 56 cents per share Tellabs posted a year ago.

Including charges, Tellabs actual fourth quarter 2001 loss was $80 million, or 20 cents per share.

On a pro forma basis, 2001 sales totaled $2.2 billion and earnings came in at $149 million, or 36 cents per share. Tellabs actual loss for the year was $182 million, or 44 cents per share.

Tellabs' full year 2000 sales were $3.3 billion.

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