Riverstone Networks posts $38.5 M Q3 net loss

Thursday, 19 September 2002, 07:00 Hrs
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SANTA CLARA, Calif: Metropolitan area networking pioneer Riverstone Networks Inc. on Thursday reported second quarter results for the period ending August 31, 2002. Revenues for the second quarter of fiscal 2003 were $10.7 million, compared with revenues of $55.3 million for the same period last year and $30.1 million for the first quarter of fiscal 2003.

Pro forma net loss for the quarter was $38.5 million or $0.31 per share, compared with pro forma net income of $1.6 million or $0.01 per share for the second quarter of fiscal 2002, and pro forma net loss of $15.3 million, or $0.12 per share for the first quarter of fiscal 2003.

GAAP net loss for the second quarter, which includes a charge of $618,000 relating to stock-based compensation, a restructuring charge of $8.3 million, and a non-cash charge of $10.7 million related to the impairment of investments in privately-held companies, was $58.0 million, or $0.47 per share. This compares with GAAP net income of $64,000 or breakeven on a per share basis for the second quarter of fiscal 2002 and GAAP net loss of $15.9 million or $0.13 per share for the first quarter of fiscal 2003.

"Continued weakness and project delays in the telecommunications sector contributed to this quarter's revenue shortfall," said Romulus Pereira, president and chief executive officer of Riverstone Networks.

"As a result, we have taken the necessary steps to better align our expenses with our revenues and we have placed a priority on minimizing cash burn, which decreased to $24 million from $35 million last quarter. With a strong cash balance of $387 million, best-in-class products, and a well-established customer base, we believe we are well positioned to return to profitability when the market recovers."

Source: IANS
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