Revenue plummets at Corvis

3rd-quarter loss grew

$25 million buyback set

October 25, 2002|By Stacey Hirsh | Stacey Hirsh,SUN STAFF

Corvis Corp., a Columbia fiber-optics company that has seen its stock price dwindle and work force shrink over the past year, reported yesterday that its loss widened and its revenue dropped by millions in the third quarter.

The company also announced after the close of trading yesterday that it plans to buy back up to $25 million of its stock to help boost cash value per share. Corvis' shares, which are traded on the Nasdaq small-cap market, closed yesterday at 65.9 cents, up 8.9 cents.

Corvis reported a net loss of $127.4 million, or 31 cents a share, for the quarter that ended Sept. 28. The company had a net loss of $80.6 million, or 23 cents a share, in the corresponding quarter of last year.

Adjusted net loss - which does not include goodwill, restructuring and other charges - was $48.4 million, or 12 cents a share, in the quarter. That compares with an adjusted net loss of $40.3 million, or 11 cents a share, in the third quarter of last year.

Revenue in the quarter fell to $1.4 million from $24.2 million in the corresponding quarter last year.

Corvis took $55.6 million in charges during the quarter for restructuring and the write-down of inventory and idle equipment.

The company had $548.7 million in cash, cash equivalents and short-term investments at the end of the quarter.

"We have enough cash to fund the operations for an extended period of time," said Andrew Backman, Corvis' vice president of investor relations and public relations. Corvis will buy up to about 9 percent of the outstanding common stock.

"We are initiating a share repurchase program because we believe in the long-term value of Corvis," said David Huber, chairman and chief executive. "Given our solid cash balance, the current share price and the strength of our product portfolio, we believe a share repurchase program represents an attractive opportunity to enhance cash value per share."

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