BUSINESS SUMMARY Avici Systems, Inc. provides high-speed Internet infrastructure equipment to transmit high volumes of information across networks. Its Avici core routing product family consists of chassis and line cards to offer carriers with flexibility in selecting a product that fits their needs. The Avici product family includes the Terabit Switch Router, Stackable Switch Router, and Quarter-rack Switch Router. The company's core routers are designed to support mission critical and new real-time services on Internet protocol (IP) networks; enable nondisruptive incremental capacity additions to the network; provide stability and interoperability required to transform complex multitiered networks to a converged IP network; and support carrier service level agreements with their customers for mission critical telecommunication services across an IP core network. It sells and markets its products to its customers through its direct sales force, sales agents, systems integrators, and third party distributors. Avici's customers include incumbent local exchange carriers, interexchange carriers, postal telephone and telegraph operators, international competitive carriers, Internet service providers, and agencies of the United States government. These customers are located in North America, Europe, Japan, Asia, and Latin America. The company has strategic relationships with Nortel Networks and Huawei Technologies. Avici was founded in 1996 and is headquartered in North Billerica, Massachusetts.
Avici Systems posts Q2 profit
;)
up over 9% ;)
AVCI
Magnificent seven
Commentary: Seven stocks poised to outperform
http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BB77BAE9D%2D5756%2D41C5%2D8D20%2D4364A1255991%7D&source=blq%2Fyhoo&dist=yhoo&siteid=yhoo
Patience pays off ;)
Breaking the 50sma 200sma & 200ema (weekly scale) ;)
July 21, 2006 closed @ $7.41
Ony 9 sessions hits $9.66 = more than 30% profit
Let's go to the other side!! ;)
After the quick run up, I think AVCI is now a perfect short....
AVCI Still looking good;)
Profiting on the upside & I'm hoping to profit too in the dowside :D >:D >:D
Man, i'm losing 6% on this trade
stop $8.90 risking 15%
Covered @ $8.12
loss over 5%
Ok, lets see now if we can profit in the short side, it seems AVCI is forming a Top Head & Shoulders. ;)
Terliso, Will you play the up side of the right shoulder if we see a bounce in the morning, Or are you just watching for the short sell? Curious to see you back watching this one! Cheers Joe
Watch AVCI for Tomorrow. Earnings out and they look good. Up in after market as well.
Avici Systems Reports Fourth Quarter and Full Year 2006 Results
Wednesday February 14, 4:30 pm ET
NORTH BILLERICA, Mass.--(BUSINESS WIRE)--Avici Systems Inc. (NASDAQ: AVCI - News), today reported results for its fourth quarter and year ended December 31, 2006.
ADVERTISEMENT
Gross revenue for the fourth quarter and year ended December 31, 2006 was $15.9 million and $82.8 million, respectively, compared to $6.1 million and $37.2 million, respectively, for the three and twelve-month periods ended December 31, 2005. Revenue, net of common stock warrant discount, for the three and twelve-months ended December 31, 2006 was $15.9 million and $82.2 million respectively, compared to $5.6 million and $35.1 million for the three and twelve-months ended December 31, 2005.
GAAP net income for the fourth quarter ended December 31, 2006 was $3.0 million, or $0.21 per share, compared to a GAAP net loss of $8.6 million, or $0.67 per share, in the prior year's fourth quarter. GAAP net income in the 2006 period includes $0.5 million of special charges associated with the first quarter restructuring and $0.5 million of non-cash equity based charges recognized upon the adoption of Financial Accounting Standards Board Opinion 123R, which now requires that that the fair values of stock options be expensed in the Company's GAAP financial statements. GAAP net loss in the 2005 period includes $0.5 million for a non-cash equity based charge relating to the common stock warrant discount.
GAAP net income for the year ended December 31, 2006 was $8.3 million, or $0.60 per share, compared to a GAAP net loss of $24.7 million, or $1.91 per share, for the year ended December 31, 2005. GAAP net income for the year ended December 31, 2006 includes $10.7 million of special charges associated with the Company's first quarter decision to restructure its business and re-align its cost structure, $0.8 million of non-cash equity based charges recognized under Financial Accounting Standards Board Opinion 123R, $0.5 million relating to common stock warrant discount and credits of $0.2 million from the utilization of certain inventory previously written off. Special charges include $5.4 million of costs associated with the Company's workforce reduction, $3.1 million related to inventory and inventory related charges, $1.6 million related to the write-off of certain contract distribution rights deemed impaired and $0.6 million related to certain other costs associated with the Company's decision to restructure its business and realign its cost structure. GAAP net loss for the year ended December 31, 2005 includes $2.1 million for common stock warrant discount offset by a $1.8 million gain in connection with a settlement of a claim in bankruptcy and $0.3 million of inventory credits.
Non-GAAP net income (GAAP net income or loss excluding charges for restructuring, common stock warrant discount, certain stock based compensation, inventory and settlement credits) for the three months ended December 31, 2006 was $4.0 million, or $0.28 per share compared to non-GAAP net loss of $8.1 million, or $0.63 per share in the fourth quarter of 2005. Non-GAAP net income for the year ended December 31, 2006 was $20.1 million, or $1.47 per share, compared to non-GAAP net loss of $24.7 million or $1.91 per share for the prior year ended December 31, 2005.
Cash, cash equivalents, short and long-term marketable securities and restricted cash totaled $69.6 million at December 31, 2006.
"I am pleased to report another solid quarter and the completion of a year characterized by strong financial performance," said Bill Leighton, Chief Executive Officer. "As we move ahead in 2007, we will continue to stay focused on maximizing our near term financial returns while prudently investing in our future."
Avici will discuss these quarterly results as well as future business and financial expectations in an investor conference call tomorrow, February 15, 2007 at 8:30 AM EST. The conference telephone number is (800) 288-8976. A replay of the conference call will be available after 11:15 AM. Replay information will be available at (800) 475-6701 (USA) access code: 862023. Replay of this call is also available on Avici's Web site, www.avici.com, along with a copy of this release.
Avici is a trademark of Avici Systems Inc.
This release contains information about Avici's future expectations, plans, and prospects, including Avici's expectations for annual gross revenues that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Statements made with regard to interim results are not necessarily indicative of results that may be expected for future interim periods or for the full year. When used in this press release, the word "will", "expected" and other similar expressions are intended to identify such forward looking statements. Such risks and uncertainties include, but are not limited to, the impact of restructuring and realignment, the amount and timing of the occurrence of related charges, risks associated with focusing on a core set of features and functionalities, market acceptance of Avici products, services and enhancements, dependence on our major customer, customer purchasing patterns and commitments, development of the market place, product development and enhancement, intensity of competition of other vendors, technological changes, reliance on distribution partners, risks associated with international expansion, and other risks set forth in Avici's filings with the Securities and Exchange Commission. Avici does not undertake any duty to update forward-looking statements.
Watching the historical 9.07 resistance.
If this is broken with blocks...
Previous hours high: 9.02
Previous hours low: 7.96
Premarket high:9.53
The 15 minute ma was breached, getting ready to get out.
Got in earlier at 8.80
mental stop at 8.60
Out at 8.64
Touched my mental stop too many times already.
Good luck to all.
Tempted to re - buy this at 7.15 if it tanks and go for the bounce.
Revisiting AVCI, a growth stock ;)
from Zacks,just fyi:
Avici Systems (AVCI) currently rates a Sell, according to Zacks senior technology analyst Steve Biggs, CFA.nbsp; His latest research report supplies the details: 'Although strong end-of-life router sales are driving better-than-expected revenue, our long-term outlook for Avici Systems remains unchanged. We believe Soapstone offers a unique product but that revenues will be slow to ramp. Six months from now, investors will likely be concerned about a lack of visibility into revenue growth from software. 'Once router sales are complete, the stock should begin to trade on its current cash position, plus the value of a call option for the Soapstone business. With 2007 revenue tracking well over initial expectations, we have raised our estimate for AVCI's year-end per share cash balance from $3.00 to $5.86. 'That said, we maintain a Sell rating on the shares. Given a company in the early stages that Soapstone is in, we believe a call option would be worth approximately $1 at this point. We therefore retain our price target of $7.00, which is approximately the value of cash on hand and $1 for Soapstone.
http://www.knobias.com/story.htm?eid=3.1.1ca8889cf7bc170bba69292b9e7c1e87293c6c822b746d6f6deb699302d08fb3
This Analysis was requested sometime ago in the «Analysis on Demand (http://www.3stocksonfire.org/trading/index.php?topic=10288.0)» thread, which is available only for 3SOF Premium Members (14-Day Free Trial (http://www.3stocksonfire.org/premium_service.php) available).
1. Profile
Avici Systems, Inc. (AVCI) provides high-speed data networking equipment that enables networking service providers to transmit data, voice, and video across their networks in North America and Europe. Its primary routing product family consists of three chassis platforms and various line cards. The company provides three equipment configurations, such as the Terabit Switch Router product for the stresses of carrier core routing in large Internet protocol (IP) networks; Stackable Switch Router, a rack-mountable scalable router for service providers with smaller core networks; and Quarter-rack Scalable Router. Its routers are designed to provide high performance across large IP-based core networks; stability and interoperability; and in-service modular scalability to enable non-disruptive incremental capacity additions to the network. The company's products provide these benefits through its proprietary technologies, including its application specific integrated circuits, Velociti switch fabric and distributed system design, IPriori system software, Composite Links, and Non Stop Routing technologies. In addition, it offers support and maintenance, as well as installation and service. The company was founded in 1996 and is headquartered in North Billerica, Massachusetts.
2. Stock Price History
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=40604;image)
The long term chart above could suggest the existence of heavy dilution, but the small numbers in blue below the price line, which tell you the number of shares outstanding (http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=avci&lstStatement=10YearSummary&stmtView=Ann) (in millions), shows that wasn't the case.
AVCI's problem was of another nature: heavy losses over the years (http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=avci&lstStatement=10YearSummary&stmtView=Ann). But, after losing $425 M between 1997 and 2005, the company posted its first ever positive net income number in 2006, which makes this stock quite an interesting case.
Let's study the last couple of years in some more detail.
3. 2006 and 2007 history
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=40605;image)
Wow, so many brutal gaps. Let me try to find out what happened in those gap days.
1 - In April 20, 2006, the stock rose 84% in one day, with 10.8 million shares changing hands. The company reported 1st quarter earnings on that day:
«"Strong first quarter order volume coupled with the initial positive affects experienced from our business restructuring and cost structure re-alignment have resulted in Avici's highest quarterly revenue since mid-2001 and produced our first ever positive bottom line result, before special charges," said Bill Leighton, Chief Executive Officer.»
Non gap EPS was $0.15, which made people think $0.60 for a full year and made the stock close at $8.02 for a 13.4 earnings multiple.
After this big news the stock came off on low volume, almost to the initial point before the news.
2 - Then on July 21st, 2006, second quarter results were out, and again, AVCI opened with a blast, rising 34% at the open. The news was:
«"Due to a surge and acceleration in demand this quarter's revenue and bottom line results have far exceeded our expectations and resulted in the company turning cash flow positive. We expect to continue to see strong revenue and bottom line results in 2006, but caution that the business conditions driving this increased demand can change significantly. As we have previously announced, we have restructured our business to be profitable at what we believe is a reasonable going forward revenue baseline over the near term in a multi-vendor environment, even though we expect that 2006 will substantially exceed those levels," said Bill Leighton, Chief Executive Officer.»
These results were much better than the 1st quarter, with GAAP EPS of $0.58 for the quarter. But the stock rose less, initially, because people were burned from buying this stock on a very big gap up. The stock didn't change much until February 2nd, 2007, when ...
3 - There were reports of an institutional investor, Dimensional Fund Advisors, was holding 661,706 shares of the company, or 4.78%.
This piece of information moved the stock from $7.54 to a high of $13.96, when ...
4 - There was a 33% fall at the open, due to the following news:
• Avici Slips on Soapstone Shift (http://us.rd.yahoo.com/finance/external/tsmfe/SIG=12bre5c5s/*http://www.thestreet.com/_yahoo/newsanalysis/technetworking/10351494.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA)
at TheStreet.com (Thu, Apr 19)
This is very interesting, the company changed its business model completely, because management saw router orders from AT&T drying in the near future (this probably explains the recurrent low earnings multiple). Those orders presumably would go to Cisco or Juniper. AVCI had $70 M in cash and management said they move the company to the software business.
Let's see what we have over the next few chapters.
5 - Point 5 isn't on the chart, but you can see the gap down between points 4 and 6. This happened as a response to the following news:
Strange, I can't find any news to explain this sudden 26% decline. Ah, ok, I found it later, it was because of the ex-dividend date of a $2 cash dividend.
6 - AVCI rose 35% on the following news release:
• Avici Systems Reports Second Quarter 2007 Results (http://biz.yahoo.com/bw/070719/20070719005273.html?.v=1)
Business Wire (Thu, Jul 19)
Earnings for the quarter were spectacular, but because they came from discontinued operations, the stock fell back down to close the gap and then some. AVCI paid a $28 M cash dividend and still had $61 M in cash at this point.
4. What do we have now?
We now have a $151 M market cap company with $61 M in cash entering a new business. The past isn't any guide for the future in this case, because a few quarters from now AVCI will be an entirely new business (SoapStone Networks will be the new name).
So, the issue is, how much is SoapStone worth? More or less than $151 M - $61 M = $90 M?
I've read some press releases about SoapStone and the company's website at www.soapstonenetworks.com and unfortunately I don't understand the product very well and can't judge its market potential.
As Buffet says, "invest only in businesses you understand". This clearly isn't my case with AVCI. Perhaps one of you guys is a telecommunications engineer and knows something about the need for this SoapStone product.
5. Conclusion
AVCI's old business is ending and the market currently values its new business at $90 M. I don't know if that's a lot or if it's well below fair value, because I don't understand and can't judge the product, its price, or its market potential. An investment in AVCI shares would be a complete shot in the dark for me. My opinion is neutral.
This Analysis was requested sometime ago in the «Analysis on Demand (http://www.3stocksonfire.org/trading/index.php?topic=10288.0)» thread, which is available only for 3SOF Premium Members (14-Day Free Trial (http://www.3stocksonfire.org/premium_service.php) available).
This one showed up in a search I did over the weekend...good profit margin, good ROE, and low P/E compared to its peers. That's all I remember about it...
Avici Systems Reports Fourth Quarter and Full Year 2007 Results
Thursday February 28, 7:00 am ET
BILLERICA, MA--(MARKET WIRE)--Feb 28, 2008 -- Avici Systems Inc. (NasdaqGM:AVCI - News) today reported results for its fourth quarter and full year ended December 31, 2007.
ADVERTISEMENT
Gross revenue for the three and twelve months ended December 31, 2007 was $44.9 million and $124.3 million, respectively, compared to $15.9 million and $82.8 million, respectively for the three and twelve months ended December 31, 2006.
"This year marks an exciting turning point for the Company as we change our name to Soapstone Networks and deliver a revolutionary product that will help accelerate the adoption of Carrier Ethernet technology and automate the entire service lifecycle," said Bill Leighton, Chief Executive Officer, Avici Systems. "I am very pleased with the progress we have made in developing and marketing the Soapstone PNC(TM) solution, which we believe will significantly accelerate innovation in the delivery of new network services."
GAAP net income for the fourth quarter ended December 31, 2007 was $29.2 million, or $1.90 per share, compared to a GAAP net income of $3.0 million, or $0.21 per share, in the prior year's fourth quarter. GAAP net income in the 2007 period includes $0.6 million of non-cash equity based charges associated with Financial Accounting Standards Board Statement No. 123R ("SFAS 123R"). GAAP net income for the 2006 period includes $0.5 million of non-cash equity based charges associated with SFAS 123R.
GAAP net income for the twelve months ended December 31, 2007 was $62.3 million, or $4.16 per share, compared to a GAAP net income of $8.3 million, or $0.60 per share, for the twelve months ended December 31, 2006. GAAP net income in the 2007 period includes $2.3 million of non-cash equity based charges associated with SFAS 123R, $0.3 million of special charges associated with the 2006 restructuring and $0.2 million of certain inventory credits. GAAP net income for the 2006 period includes $10.7 million of special charges associated with the 2006 restructuring, $0.8 million of non-cash equity based charges associated with SFAS 123R, $0.5 million of non-cash common stock warrant discount charge and $0.2 million of certain inventory credits.
Non-GAAP net income (GAAP net income excluding charges for restructuring, certain stock based compensation, common stock warrant discount and inventory credits) for the fourth quarter ended December 31, 2007 was $29.8 million, or $1.93 per share compared to non-GAAP net income of $4.0 million, or $0.28 per share in the fourth quarter of 2006. Non-GAAP net income for the twelve months ended December 31, 2007 was $64.7 million, or $4.31 per share, compared to non-GAAP net income of $20.1 million or $1.47 per share for the prior year twelve month period ended December 31, 2006.
Cash, cash equivalents and short and long-term marketable securities totaled $103.0 million at December 31, 2007.
Avici will discuss these quarterly results as well as future business and financial expectations in an investor conference on February 28, 2008 at 8:30 AM eastern standard time. The conference telephone number is (800) 230-1093. A replay of the conference call will be available after 11:15 AM. Replay information will be available at (800) 475-6701 (USA) access code: 909097. Replay of this call is also available on Avici's Web site, www.avici.com, along with a copy of this release.
Avici is a trademark of Avici Systems Inc.
This release contains information about Avici's future expectations, plans, and prospects, including Avici's expectations for annual gross revenues, profitability and the growth opportunity for Soapstone Networks, that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Statements made with regard to interim results are not necessarily indicative of results that may be expected for future interim periods or for the full year. When used in this press release, the word "will," "expected" and other similar expressions are intended to identify such forward-looking statements. Such risks and uncertainties include, but are not limited to, Avici's ability to manage the transition of its core router business, the early stage of Soapstone Networks, market acceptance of our products, services and enhancements, dependence on our major customer, customer purchasing patterns and commitments, development of the market place, product development and enhancement, intensity of competition of other vendors, technological changes, reliance on technology and distribution partners, and other risks set forth in Avici's filings with the Securities and Exchange Commission. Avici does not undertake any duty to update forward-looking statements.
About Avici Systems
Avici Systems Inc., headquartered in Billerica, Mass., has provided purpose-built carrier-class routing solutions for the Internet. The company's routing systems provide IP solutions to some of the world's leading service providers. www.avici.com
About Soapstone Networks
Soapstone Networks is at the forefront of the movement to Carrier Ethernet by delivering resource control systems that realize NGN software-provisioned services in the new Carrier Ethernet transport network. Soapstone's common control framework decouples services from underlying network technologies. The Soapstone solution dynamically provisions precise, SLA-quality services, continuously optimizing utilization of network resources to bring orderly, predictable business-driven behavior to service provider networks. The future of Carrier Ethernet -- www.soapstonenetworks.com
AVICI SYSTEMS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------- ----------------------
2007 2006 2007 2006
---------- ---------- ---------- ----------
Revenue:
Product $ 42,137 $ 13,992 $ 114,388 $ 76,371
Service 2,737 1,904 9,912 6,392
---------- ---------- ---------- ----------
Total gross revenue 44,874 15,896 124,300 82,763
Less - Common stock warrant
discount - Product -- -- -- (527)
---------- ---------- ---------- ----------
Net revenue 44,874 15,896 124,300 82,236
---------- ---------- ---------- ----------
Cost of revenue - Product
(1) 8,029 3,924 27,462 26,328
Cost of revenue - Service 264 393 1,434 1,795
---------- ---------- ---------- ----------
Total cost of revenue 8,293 4,317 28,896 28,123
---------- ---------- ---------- ----------
Gross margin 36,581 11,579 95,404 54,113
---------- ---------- ---------- ----------
Operating expenses:
Research and development
(2) 5,284 5,877 25,010 30,154
Sales and marketing (2) 820 949 2,762 4,077
General and
administrative (2) 1,397 1,505 5,773 5,562
Stock-based compensation 579 492 2,323 819
Restructuring expenses -- 495 100 7,617
---------- ---------- ---------- ----------
Total operating expenses 8,080 9,318 35,968 48,229
---------- ---------- ---------- ----------
Income from operations 28,501 2,261 59,436 5,884
Interest income, net 1,045 897 3,771 2,571
Other Income 163 -- 244 --
Provision for income tax (504) (170) (1,174) (170)
---------- ---------- ---------- ----------
Net income $ 29,205 $ 2,988 $ 62,277 $ 8,285
========== ========== ========== ==========
Net earnings per diluted
share $ 1.90 $ 0.21 $ 4.16 $ 0.60
========== ========== ========== ==========
Weighted average common
shares used in computing
diluted net income per
share 15,403,673 14,075,017 14,984,454 13,706,889
========== ========== ========== ==========
(1) Includes inventory
charge and (credits), as
follows:
Inventory and
Inventory related
charge $ -- $ -- $ 175 $ 3,094
========== ========== ========== ==========
Credits from
utilization of
inventory previously
written off in 2006
and 2001 $ -- $ -- $ (218) $ (215)
========== ========== ========== ==========
(2) Excludes certain
non-cash, stock-based
compensation, as follows:
Research and
development $ 311 $ 265 $ 1,307 $ 440
Sales and marketing 95 83 205 151
General and
administration 173 144 811 228
---------- ---------- ---------- ----------
$ 579 $ 492 $ 2,323 $ 819
========== ========== ========== ==========
AVICI SYSTEMS INC.
NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
(Unaudited)
Note 1
Three Months Ended Twelve Months Ended
December 31, December 31,
2007 2006 2007 2006
---------- ---------- ---------- ----------
Revenue:
Product $ 42,137 $ 13,992 $ 114,388 $ 76,371
Service 2,737 1,904 9,912 6,392
---------- ---------- ---------- ----------
Total gross revenue 44,874 15,896 124,300 82,763
Cost of revenue - Product 8,029 3,924 27,505 23,449
Cost of revenue - Service 264 393 1,434 1,795
---------- ---------- ---------- ----------
Total cost of revenue 8,293 4,317 28,939 25,244
---------- ---------- ---------- ----------
Gross margin 36,581 11,579 95,361 57,519
---------- ---------- ---------- ----------
Operating expenses:
Research and development 5,284 5,877 25,010 30,154
Sales and marketing 820 949 2,762 4,077
General and
administrative 1,397 1,505 5,773 5,562
---------- ---------- ---------- ----------
Total operating
expenses 7,501 8,331 33,545 39,793
---------- ---------- ---------- ----------
Income from operations 29,080 3,248 61,816 17,726
Interest income, net 1,045 897 3,771 2,571
Other Income 163 -- 244 --
Provision for income tax (504) (170) (1,174) (170)
---------- ---------- ---------- ----------
Non-GAAP net income $ 29,784 $ 3,975 $ 64,657 $ 20,127
========== ========== ========== ==========
Non-GAAP earnings per
diluted share $ 1.93 $ 0.28 $ 4.31 $ 1.47
========== ========== ========== ==========
Weighted average common
shares used in computing
diluted net income per
share 15,403,673 14,075,017 14,984,454 13,706,889
========== ========== ========== ==========
Note 1 - The above non-GAAP consolidated statements of operations for the
three and twelve months ended December 31, 2007 and 2006 are not presented
in accordance with generally accepted accounting principles (GAAP) and are
presented for informational purposes only. These statements exclude the
impact of restructuring expenses, non-cash charges related to common stock
warrant discount and certain stock based compensation as well as charges
and credits related to inventory and related items as presented in the
following reconciliation for the applicable periods. The Company believes
that this presentation of non-GAAP results provides helpful information to
both management and investors in assessing our core operating performance.
Such information should not be considered superior to, in isolation from,
or as a substitute for results presented in accordance with generally
accepted accounting principles.
Three Months Ended Twelve Months Ended
December 31, December 31,
2007 2006 2007 2006
---------- ---------- ---------- ----------
Non-GAAP net income $ 29,784 $ 3,975 $ 64,657 $ 20,127
Common stock warrant
discount -- -- -- (527)
Restructuring expenses -- (495) (100) (7,617)
Certain non-cash stock
based compensation (579) (492) (2,323) (819)
Inventory and inventory
related charge -- -- (175) (3,094)
Utilization of inventory
previously written-off -- -- 218 215
---------- ---------- ---------- ----------
GAAP net income $ 29,205 $ 2,988 $ 62,277 $ 8,285
========== ========== ========== ==========
AVICI SYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(Unaudited)
December 31, December 31,
------------ ------------
2007 2006
------------ ------------
Assets
Cash, Cash equivalents and
marketable securities $ 99,988 $ 60,095
Inventories -- 5,438
Trade accounts receivable, net 11,769 3,583
Restricted cash -- 1,243
Other current assets 790 890
------------ ------------
Total current assets 112,547 71,249
Long-term marketable securities 3,000 8,504
Property and equipment, net 3,306 4,937
------------ ------------
Total assets $ 118,853 $ 84,690
============ ============
Liabilities and Stockholders' Equity
Accounts payable and accrued expenses $ 9,002 $ 8,914
Deferred revenue 2,343 9,592
Stockholders' equity 107,508 66,184
------------ ------------
Total liabilities and stockholders' equity $ 118,853 $ 84,690
============ ============
December 31, 2006 amounts are derived
from audited financial statements.
-------------------------------------------------------------
Avici Shares Jump As 4Q Profit Soars
Thursday February 28, 11:55 am ET
Avici Shares Up After 4th-Quarter Profit, Sales Surge
BILLERICA, Mass. (AP) -- Shares of Avici Systems Inc. jumped Thursday after the networking technology company said its fourth-quarter profit multiplied nearly tenfold as revenue from its Internet routing products soared and operating costs declined.
ADVERTISEMENT
The company, which is changing its name to Soapstone Networks, earned 29.2 million, or $1.90 per share, up from a profit of $3 million, or 21 cents per share, in the same period a year earlier.
Revenue jumped to $44.8 million from $15.9 million.
Product sales were $42.1 million, up from $14 million a year earlier.
Operating costs fell 13 percent to $8.1 million as research and other expenses declined.
For the full year, the company earned $62.3 million, or $4.16 per share, up from a profit of $8.3 million, or 60 cents per share, in 2006.
Revenue rose to $124.3 million from $82.2 million.
Shares rose 98 cents, or 13.8 percent, to $8.23 in late morning trading. The stock has traded between $5.76 and $13.96 in the past 52 weeks.