Corvis reports $100 million loss for first quarter

revenue is up

Fiber-optic manufacturer `very pleased' with result

April 27, 2001|By Stacey Hirsh | Stacey Hirsh,SUN STAFF

With the slowdown in the telecommunications industry continuing, fiber-optic equipment maker Corvis Corp. said yesterday that its losses widened during the first quarter of 2001 but that one of its customers will be using more Corvis products.

Qwest Communications International Inc., which agreed last summer to a $150 million contract with Corvis, has agreed to use additional Corvis products to build an all-optical express network, Columbia-based Corvis said. An express network carries data along hair-thin fibers from city to city without regeneration. However, use of the additional products does not change Qwest's original contract amount.

The company reported a net loss for the quarter of $100.8 million, or 29 cents per share, compared with a loss of $26.8 million, or 65 cents per share, in the first quarter of 2000, when there were about 300,000 fewer shares outstanding.

The pro-forma net loss in the first quarter of this year was $23 million, or 7 cents per share.

Corvis nearly doubled its revenue from $46 million in the fourth quarter of 2000 to $84.1 million in the quarter ending March 31. Because the company was not public until July, revenue for the first quarter of 2000 was not available.

Corvis also added 173 workers in the first quarter.

"We are very pleased with our first-quarter results," said David Huber, Corvis' chairman, president and chief executive officer.

Huber said the company is on track to meet its financial goals for the year. Corvis expects revenue for the year to be between $315 million and $325 million.

Second-quarter revenue is expected to be from $50 million to $70 million, and pro-forma losses for the quarter are expected to be from 5 cents to 8 cents per share.

But Corvis will not be immune to the slowdown in the telecommunications sector.

"We can't talk about potential customers without talking about what's happening in the marketplace," Huber said.

The earnings were released after stock markets closed yesterday. Shares of Corvis closed at $7.89, down 45 cents.

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