Corvis is upbeat as losses lessen, revenues rise 100%

January 26, 2001|By Meredith Cohn | Meredith Cohn,SUN STAFF

Like with many new technology companies, Corvis Corp., a maker of high-speed optical networking equipment in Columbia, hasn't made a profit.

But with commercial use of the company's products under way and revenue pouring in, company officials said yesterday that they were pleased with their fourth-quarter results.

Corvis reported a net loss of $89.7 million, or 27 cents a share, for the quarter that ended Dec. 30, compared with a net loss of $29.7 million, or 92 cents a share, for the fourth quarter in 1999.

Revenue for the quarter was $46 million, 100.7 percent more than in the third quarter, its first as a public company.

Corvis' net loss in fiscal 2000 was $283.6 million, or $1.80 a share, compared with a net loss of $71.3 million, or $2.33 a share, in 1999.

On a pro forma basis - which excludes goodwill and certain expenses associated with an acquisition - the company's net loss was $23.9 million, or 7 cents a share. That met analysts' consensus estimates for the quarter.

"Corvis completed a banner year in the fourth quarter by delivering the world's first all-optical core switch to a key customer and by delivering a significant sequential increase in revenue for its shareholders," said David R. Huber, chairman and chief executive officer. "It also set the stage for our continued success in 2001."

Corvis' optical equipment allows voice and data traffic to be transmitted as light waves rather than as slower electronic impulses.

With acceptance of the products on the way, the company will continue spending heavily on research and development to produce products and search for new customers for them, company officials told analysts during a conference call yesterday.

Analysts said they, too, were pleased with the company's results.

CIBC World Markets analyst James E. Jungjohann thanked the company for a good quarter.

Corvis' shares closed up 1.9 percent, or 44 cents, at $23.50.

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