N@N

Sycamore Networks, Inc. Reports Second Quarter Fiscal Year 2009 Financial Results

^{Published on 2009-02-19 08:26:31, Last Modified on 2009-02-19 08:29:18 - Market Wire}
 

CHELMSFORD, Mass.--([ BUSINESS WIRE ])--Sycamore Networks, Inc. (NASDAQ: SCMR), a leader in intelligent bandwidth management solutions for fixed line and mobile network operators worldwide, today reported its results for the second quarter ended January 24, 2009. Revenue for the second quarter of fiscal 2009 was $11.7 million, compared with $41.5 million for the second quarter of fiscal 2008.

Net loss for the second quarter of fiscal 2009, on a generally accepted accounting principles ("GAAP") basis, was $10.1 million, or $0.04 per share, compared with net income of $9.7 million, or $0.03 per fully diluted share for the second quarter of fiscal 2008. Non-GAAP net loss for the second quarter of fiscal 2009 was $8.3 million, or $0.03 per share, compared with non-GAAP net income of $11.5 million, or $0.04 per fully diluted share for the second quarter of fiscal 2008. The reconciliation between net income (loss) on a GAAP basis and net income (loss) on a non-GAAP basis is provided in a table immediately following the Unaudited Non-GAAP Consolidated Statements of Operations included with this release.

Net loss for the first six months of fiscal 2009, on a GAAP basis, was $15.9 million or $0.06 per share, compared with net income of $16.7 million or $0.06 per fully diluted share for the first six months of fiscal 2008. Non-GAAP net loss for the first six months of fiscal 2009 was $11.7 million, or $0.04 per share, compared with non-GAAP net income of $22.0 million, or $0.08 per fully diluted share for the first six months of fiscal 2008. The reconciliation between net income (loss) on a GAAP basis and net income (loss) on a non-GAAP basis is provided in a table immediately following the Unaudited Non-GAAP Consolidated Statements of Operations included with this release.

"Our second quarter results reflect a continuation of challenging market conditions, and the resulting impact of reduced capital spending in both our domestic and international customer base," said Daniel E. Smith, president and chief executive officer. "We remain focused on managing expenses in all areas of the company while meeting critical customer needs."

About Sycamore Networks

Sycamore Networks, Inc. (NASDAQ: SCMR) is a leading provider of intelligent bandwidth management solutions for fixed line and mobile network operators worldwide. From multiservice access networks to the optical core, Sycamore products enable network operators to lower overall network costs, increase operational efficiencies, and rapidly deploy new revenue-generating services. Sycamore's global customer base includes Tier 1 service providers, government agencies, and utility companies. For more information, please visit [ www.sycamorenet.com ].

Use of Non-GAAP Financial Measures

The Company provides non-GAAP financial data in addition to providing financial results in accordance with generally accepted accounting principles (GAAP). These measures are not in accordance with, or an alternative for GAAP, and may be different from non-GAAP measures used by other companies. The Company believes that the items excluded from the non-GAAP results have one or more of the following characteristics: their magnitude and timing is largely outside of the Company's control; they are unrelated to the ongoing operation of the business in the ordinary course; they are unusual, and the Company does not expect them to occur in the ordinary course of business; or they are non-operational, non-cash expenses involving equity grants.

The non-GAAP financial data is provided to enhance the reader's overall understanding of the Company's current financial performance and its prospects for the future. Specifically, the Company believes the non-GAAP results provide useful information to both management and investors by excluding certain expense and income items that the Company believes are not indicative of the Company's core operating results. In addition, since the Company has historically reported non-GAAP results to the investment community, the Company believes the inclusion of non-GAAP numbers provides consistency in its financial reporting. Further, these non-GAAP results are one of the primary indicators management uses for planning and forecasting in future periods. The non-GAAP financial data should be considered in addition to, not as a substitute for or a more appropriate indicator of, operating results, cash flows, or other measures of financial performance prepared in accordance with GAAP.

We wish to caution you that certain matters discussed in this news release constitute forward-looking statements regarding future events that involve risks and uncertainties. Readers are cautioned that actual results or events could differ materially from those stated or implied in the forward-looking statements. Other risks and uncertainties include, but are not limited to, actions, inquiries and findings that may result from certain stock option matters, including the restatement of previously issued financial statements and certain purported shareholder derivative actions filed against the Company and certain of its current and former officers and directors; the Company's reliance on a limited number of customers; variation in the Company's quarterly results; industry pricing pressures and the high cost of product development required to remain competitive and keep pace with evolving features and technologies desired by customers; the consolidation of both suppliers and customers in the telecommunications marketplace and general economic conditions. Certain additional risks are set forth in more detail in the section entitled "Risk Factors" in the Company's most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K filed by the Company with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.