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Telecommunications industry

Corvis Corporation Reports Progress with Combined Company Strategy, Recognizing $143 Million in Revenue

Strategic Insights

— 2 min read

Corvis Corporation, a leading provider of optical networking solutions, has made significant strides in its combined company strategy, recognizing $142.5 million in revenue for its fiscal fourth quarter ended December 31, 2003. This growth was primarily driven by communications services revenues recorded by its subsidiary, Broadwing Communications, as well as equipment sales to the United States Government. The company's reported net loss for the quarter was $55.4 million, but it improved gross margins at Broadwing and continued to control overall costs and expenses while making progress on integrating the two companies.

Key Takeaways:

  • Corvis Corporation reported $142.5 million in revenue for its fiscal fourth quarter ended December 31, 2003, with $140.4 million generated from Broadwing Communications services and $2.1 million from equipment sales to the U.S. Government.
  • The company's reported net loss for the quarter was $55.4 million, compared to a net loss of $190.2 million for the same quarter in 2002.
  • Corvis raised up to $300 million in private placement of senior unsecured convertible notes to institutional investors, with the option of an additional $75 million subscription.
  • The company renegotiated its relationship with Cequel III, acquiring full board-level and operational control of C III Communications and eliminating the management services agreement.
  • Corvis recorded $18.5 million in charges related to the renegotiation of the agreement, which is reflected as a component of restructuring and other charges.
  • The company recorded $82.9 million in charges related to restructuring, inventory allowances, and other charges for fiscal year 2003.
  • Corvis ended the year with $296.8 million in cash, cash equivalents, and investments, at the high end of its previous guidance of $275-$300 million.
  • Recognizing the progress made by the combined company, Corvis chairman and CEO Dr. David Huber expressed confidence in the company's ability to provide long-term shareholder value.
  • Dr. Huber also acknowledged the significant contributions of Jerry Kent, president and CEO of Cequel III, and the company's management team in helping the company with the acquisition and transition.

Statistics:

  • Revenue: $142.5 million (Q4 2003)
  • Net loss: $55.4 million (Q4 2003)
  • Revenue: $140.4 million (Broadwing Communications services, Q4 2003)
  • Revenue: $2.1 million (equipment sales to U.S. Government, Q4 2003)
  • Cash, cash equivalents, and investments: $296.8 million (December 31, 2003)
  • Charges related to renegotiation of agreement: $18.5 million (Q4 2003)
  • Charges related to restructuring, inventory allowances, and other charges: $82.9 million (fiscal year 2003)

Sources:

  • PRNewswire (February 12, 2004)
  • Corvis Corporation (press release, February 12, 2004)
  • Corvis Corporation (form 10-K, filed with the SEC)

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