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Riverstone announces preliminary Q1 results
By siliconindia
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Friday, 13 June 2003, 19:30 IST
SANTA CLARA: Riverstone Networks Inc., (Nasdaq:RSTN) Friday announced that it expects revenues for the first quarter of fiscal 2004, which ended May 31, 2003, to be approximately $12 million to $13 million.
The company said it expects to report a GAAP net loss for the quarter of approximately $0.15 per share to $0.17 per share.
While the company experienced increased sales during the first quarter in EMEA (Europe, the Middle East and Africa), North American sales remained flat relative to the previous quarter, and sales in Asia, particularly China, were weak due in part to regional disruption of business activity, the company claimed. Despite uneven global markets, the company expects overall first quarter gross margins to be in the mid to high 30 percent range.
The company was also successful in reducing the cost of operations during the first quarter, decreasing GAAP net loss to a projected range of $18.6 million to $20.7 million, versus $40.6 million the previous quarter. The headcount total of 368 at the end of the first quarter is below the previously announced target of 380, and the company continues to focus on a range of cost reductions in order to accelerate its return to profitability. In addition, during the first quarter the company purchased $15.3 million of its convertible notes at 79 percent of face value, for a gain of $1.6 million, net of tax.