Avanex revises Q3, FY 2001 earnings forecasts - 500 Beiträge pro Seite

[panik]

Avanex revises Q3, FY 2001 earnings forecasts
FREMONT, Calif., Feb 27 (Reuters) - Avanex Corp. (NasdaqNM:AVNX - news), a maker of photonic processors, on Tuesday revised its earnings and revenue forecasts for its fiscal third quarter and fiscal 2001, citing lower spending on certain systems.

The Fremont, Calif.-based company said it expected to post third-quarter pro forma earnings per diluted share of 2 cents to 3 cents on sales of about $41 million.

The consensus estimate for the quarter among analysts polled by First Call/Thomson Financial was earnings of 6 cents per share.

For its fiscal year 2001, Avanex said, it expected to post pro forma earnings of 15 cents to 16 cents per share on revenues of about $169 million.

``Orders for our more mature product line, PowerFilter, have been temporarily impacted by the ca Go???on legacy systems, even though we continue to see significant increases in international orders, in order Do???generation products and in the number of customers we serve,`` said Avanex Chairman and Chief Executive Walter Alessandrini.

Nachbörslich sieht es nicht gut aus!

[panik]

Avanex Updates Outlook for Financial Results; Conference Call Today at 4:30 pm EDT
FREMONT, Calif., Feb. 27 /PRNewswire/ --

Avanex Corporation (Nasdaq: AVNX - news), pioneer of photonic processors that accelerate the deployment of the next-generation optical networks, today announced revised outlook for the third fiscal quarter ending March 30, 2001, for fiscal year 2001 and for calendar year 2001.

The Company announced that it expects sales in the third quarter of fiscal year 2001 to be approximately $41 million (compared to $10.5 million in the third fiscal quarter of 2000) and pro forma diluted earnings per share to be $0.02 to $0.03 (compared to a loss of $0.04 in the third fiscal quarter of 2000). Avanex expects gross margins in the quarter to be approximately 46.5% as a result of the revision in revenue estimates.

For fiscal year 2001, Avanex now expects revenues of approximately $169 million (compared to $41 million in fiscal year 2000) and pro forma diluted earnings per share to be $0.15-$0.16 (compared to a loss of $0.11). For calendar year 2001, the company expects revenues of approximately $200 million (compared to $113 million in calendar year 2000) and pro forma diluted earnings per share to be $0.20-$0.21 (compared to EPS of $0.05).

In today`s announcement, Walter Alessandrini, Avanex Chairman and CEO, noted that ``orders for our more mature product line, PowerFilter(TM), have been temporarily impacted by the carriers` lower spending on legacy systems, even though we continue to see significant increases in international orders, in orders for our next-generation products and in the number of customers we serve.``

Alessandrini said that the company expects its next-generation PowerMux(TM) and PowerExchanger(TM) to represent over 70% of revenues in its third quarter, compared to about 45% in the second quarter, while international sales will grow to over 50% of revenues as compared to about 20% in the second quarter. The company also expects to add a new 10% customer, Alcatel, in its third quarter.

``Even though we continue to see strong growth for the company as our next- generation products take increasing hold in the marketplace, we believe it is prudent to be more conservative regarding our short-term outlook,`` said Alessandrini. ``We remain very confident that our strategy to provide premier advanced technology products will continue to place us at the front of the growth curve as carriers around the world continue to increase investments in next generation networks.``

Conference Call

Avanex will discuss its revised guidance on a conference call scheduled today, February 27, at 4:30 p.m. EDT. The number for the conference call is 888-677-5726. The password is ``AVANEX.`` A replay of the conference call will be available through March 6, 2001, at 800-568-4204.

About Avanex

Avanex designs, manufactures and markets photonic processors for the communications industry. Avanex`s photonic processors offer communications service providers and optical systems manufacturers greater levels of performance and miniaturization, reduced complexity and increased cost- effectiveness as compared to current alternatives.

Avanex was incorporated in 1997 and is headquartered in Fremont, Calif. In addition to a development and manufacturing facility in Fremont, the company also maintains The Photonics Center(TM) in Richardson, Texas and a development facility in Hudson, Mass.

To learn more about Avanex, visit its web site at: www.avanex.com.

Forward-looking Statements

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act. Actual results could differ materially from those projected in the forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, our inability to sufficiently anticipate market needs and develop products and product enhancements that achieve market acceptance.

Avanex undertakes no obligation to publicly release the result of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

CONTACT: Mark Weinswig, 510-897-4344, or fax, 510-897-4345, or e-mail, [e-mail], or Tony Florence, 510-897-4162, or fax, 510-979-0198, or e-mail, [e-mail], both of Avanex Corporation.

SOURCE: Avanex Corporation

[Immanuel_K]

nicht gut *g* ... eben noch über minus 40% , grade nur noch minus 33% ...

[Immanuel_K]

... gegenüber dem Eröffnungskurs, heutige Handelsverluste also schon eingerechnet ...

[panik]

Avanex Corp (AVNX: news, msgs, alerts) , a photonic processors company, warned investors that sales for the third quarter would be about $41 million, with earnings of 2 cents to 3 cents a share. Analysts polled by First Call currently anticipate a profit of 6 cents a share. As for the year, the company expects revenue of about $169 million, with earnings of 15 cents to 16 cents a share, while analyst had been expecting a profit of 25 cents. Orders for the company`s "more mature" products have slowed, due in part to the customers` lower spending on older phone systems. Shares closed down $3.81 to $23.94 ahead of the news. In after hours trading, the stock slid to $18.13.

[panik]

27.02. 23:11
Noch eine Gewinnwarnung...
--------------------------------------------------------------------------------
(©BörseGo - http://www.boerse-go.de)

Auch Avanex, ein Unternehmen, das zukunftsträchtige Photonikprozessoren erstellt, mußte heute eingestehen, daß die Analystenschätzungen angesichts der schwächer werdenden Ausgaben der Unternehmen für Hightechprodukte zu hoch gegriffen sind.

Anstelle der erwarteten 6 Cents Gewinn/Aktie würden für das laufende dritte Quartal nur zwei bis drei Cents Gewinn/Aktie bei einem Umsatz von 41 Mio $ erwartet.

Für das Gesamtjahr geht man von einem Umsatz von 169 Mio $ bei einem Gewinn von 15 bis 16 Cents/Aktie aus

[panik]

Avanex Announces Q1 Revenues of $7.2 Million; Acquires LambdaFlex, a Developer of Intelligent Optical Modules
FREMONT, Calif., Oct. 22 /PRNewswire/ --

Avanex Corporation (Nasdaq: AVNX - news), pioneer of photonic processors that enable next generation optical networks, today reported first quarter results for its fiscal year 2002, which ended September 30, 2001.

Avanex President and Chief Executive Officer Paul Engle said, ``Capital spending by telecommunication carriers continues to be soft. While we see no change in the environment in the near term, we remain optimistic about the long-term potential of this industry. In the interim, we continue to make progress on three strategic areas: proactively managing our costs, improving our operating effectiveness, and increasing the value and range of the product and technology solutions we bring to the market through investments in research and development.

``Avanex is executing on its strategy of developing next generation optical products and technologies for both metro and long haul systems that lower costs, improve functionality and increase bandwidth. As a leader in photonics, we are aggressively committed to increasing our product portfolio. For example, today we announced a definitive agreement for the acquisition of LambdaFlex, a developer of technologies for dynamic optical networks.

``In addition, we have implemented spending reduction initiatives to improve our financial outlook. Avanex`s cost cutting strategy reduced operating expenses by almost 30%, on a pro-forma basis, in the first quarter of fiscal 2002 from the prior quarter. We continue to focus on lowering our operating break-even point. These efforts have helped us to maintain our strong balance sheet, which includes more than $200 million in cash and securities.``

``We also continue to install new management processes that increase our operating effectiveness and efficiency within our core functions, including sales and marketing, manufacturing and quality, and research and development. We remain committed to build Avanex into a world-class company,`` said Engle.

Financial Results

Avanex`s net revenues for the first quarter of fiscal 2002 ended September 30, 2001 were $7.2 million. This was a decrease of $27.6 million over the Company`s revenues of $34.8 million for the first quarter of fiscal 2001 ended September 30, 2000. The Company reported revenues of $18.2 million in the fourth quarter of fiscal year 2001.

Pro forma net loss for the first quarter of fiscal 2002 was $6.8 million, or $0.11 per share excluding charges for amortization of deferred stock compensation, excess inventory, restructuring activities, in-process research and development and amortization of intangibles. This compared with a pro forma net income of $2.3 million, or $0.03 per share for the prior year`s first quarter. The Company reported pro forma net loss of $1.6 million, or $0.03 per share in the fourth quarter of fiscal year 2001 ended June 30, 2001.

Net loss for the first quarter of fiscal 2002 including charges for amortization of deferred stock compensation, excess inventory, restructuring activities, in-process research and development and amortization of intangibles was $21.0 million or $0.34 per share. This compared to a net loss of $25.3 million or $0.46 per share for the same period in the prior year. A net provision for excess inventory of $2.9 million was recorded in the first quarter due to a significant drop in customer demand. Net loss was $49.3 million or $0.82 per share loss in the fourth quarter of fiscal 2001 ended June 30, 2001.

LambdaFlex Acquisition

Avanex today announced it had executed a definitive agreement for the acquisition of LambdaFlex, a developer of intelligent optical modules for increased network flexibility. Terms of the agreement were not disclosed.

According to Avanex`s Founder and Chief Technology Officer Dr. Simon Cao, ``The acquisition of LambdaFlex enables us to strengthen our product portfolio in wavelength management solutions for the metro market, and adaptive wavelength equalization for the long-haul and ultra-long-haul markets. At the same time, we are acquiring proven expertise in the design and application of innovative optical modules and sub-systems.``

``We view this acquisition as a valuable addition to Avanex`s vision of delivering next generation products to systems integrators and carriers. LambdaFlex`s technology is a critical piece in the design of intelligent optical networks. We are very excited about the potential,`` said Cao.

Outlook

The Company noted that given the lack of visibility within the marketplace, it would not provide guidance for its outlook on fiscal 2002 at this time.

Conference Call

Avanex will host a conference call scheduled today, October 22, at 4:30 p.m. EDT. The number for the conference call is 877-915-2769. The password is ``Photonics.`` A replay of the conference call will be available through October 28, 2001, at 800-385-2546.

About Avanex

Avanex designs, manufactures and markets photonic processors for the communications industry. Avanex`s photonic processors offer communications service providers and optical systems manufacturers greater levels of performance and miniaturization, reduced complexity and increased cost- effectiveness as compared to current alternatives. Avanex was incorporated in 1997 and is headquartered in Fremont, Calif. In addition to a development and manufacturing facility in Fremont, the Company also maintains The Photonics Center(TM) in Richardson, Texas.

To learn more about Avanex, visit its web site at: www.avanex.com.

Forward-looking Statements

This press release contains forward-looking statements including forward- looking statements regarding the Company`s ability to achieve anticipated cost reductions and increase cash flow, and the Company`s ability to increase efficiencies in its sales, marketing and development operations. Actual results could differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ include general economic conditions, the pace of spending and timing of economic recovery in the telecommunications industry and in particular the optical networks industry, the Company`s inability to sufficiently anticipate market needs and develop products and product enhancements that achieve market acceptance, higher than anticipated expenses the Company may incur in future quarters or the inability to identify or reduce expenses which can be eliminated, and the impact of the Company`s restructuring on its ability to achieve increased efficiencies in its operations. In addition, please refer to the risk factors contained in the Company`s SEC filings including its most recently 10-Q filed with the SEC on February 15, 2001.

Avanex undertakes no obligation to publicly release the result of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.


Contact Information:

Investor Relations Media
Mark Weinswig Tony Florence
Phone: [phone] Phone: [phone]
Fax: [phone] Fax: [phone]
e-mail: [e-mail] e-mail: [e-mail]



AVANEX CORPORATION
Pro forma Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)

Three Months Ended
September 30,
2001 2000
Net revenue $ 7,178 $ 34,767
Cost of revenue 6,556 19,255
Gross profit (loss) 622 15,512

Operating expenses:
Research and development 5,782 8,165
Sales and marketing 1,469 3,965
General and administrative 1,804 2,906
Total operating expenses 9,055 15,036
Income (loss) from operations (8,433) 476
Other income, net 1,607 3,415
Income (loss) before income
taxes (6,826) 3,891
Income taxes -- 1,556
Net income (loss) $ (6,826) $ 2,335

Basic net income (loss)
per common share $ (0.11) $ 0.04

Weighted average shares used
in computing basic net income
(loss) per common share 61,244 54,841

Diluted net income (loss) per
common share $ (0.11) $ 0.03

Weighted average shares used in
computing diluted net income
(loss) per common share 61,244 68,359



AVANEX CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)

September 30, June 30,
2001 2001
Assets
Current assets:
Cash and cash equivalents $ 89,702 $ 79,313
Short-term investments 105,568 125,278
Accounts receivable, net 2,778 13,977
Inventories 2,952 6,451
Other current assets 1,034 877
Total current assets 202,034 225,896
Long-term investments 22,441 16,462
Property and equipment 25,212 25,864
Intangibles, net 40,105 42,724
Other assets 652 643
Total assets $ 290,444 $ 311,589

Liabilities and stockholders`
equity
Current liabilities:
Short-term borrowings $ 10,545 $ 6,488
Accounts payable 6,045 13,506
Current portion of accrued
restructuring charge 4,281 7,333
Other accrued expenses 6,102 6,563
Warranty 5,580 5,589
Current portion of long-term
obligations 5,448 5,060
Accrued compensation and
related expenses 3,626 4,756
Deferred revenue 636 1,948
Total current liabilities 42,263 51,243
Long-term obligations 11,771 12,527
Accrued restructuring charges 2,243 2,465
Total liabilities 56,277 66,235

Stockholders` equity:
Common stock 67 65
Additional paid-in capital 491,064 489,204
Notes receivable from
stockholders (1,646) (2,048)
Deferred compensation (25,301) (32,818)
Accumulated deficit (230,017) (209,049)
Total stockholders` equity 234,167 245,354

Total liabilities and
stockholders` equity $ 290,444 $ 311,589



AVANEX CORPORATION
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)

Three Months Ended
September 30,
2001 2000
Net revenue $ 7,178 $ 34,767
Cost of revenue 9,471 19,255
Gross profit (loss) (2,293) 15,512

Operating expenses:
Research and development 5,782 8,165
Sales and marketing 1,469 3,965
General and administrative 1,804 2,906
Stock compensation 8,939 21,141
In-process research and
development -- 4,700
Amortization of intangibles 2,619 1,798
Restructuring Charge (331) --
Total operating expenses 20,282 42,675
Loss from operations (22,575) (27,163)
Other income, net 1,607 3,415
Loss before income taxes (20,968) (23,748)
Income taxes -- 1,556
Net loss $ (20,968) $ (25,304)

Basic and diluted net loss per
common share $ (0.34) $ (0.46)

Weighted average shares used
in computing basic and diluted
net loss per common share 61,244 54,841

SOURCE: Avanex Corporation

[Kostolany4]

Hochgerechnet hat AVNX jetzt ein KUV von 10,5.
Angemessen wäre maximal 0,5.

Fair Value ca. 19 cent

Zum Schmunzeln: Die Aktie wurde von Fred Hager bei Kursen um 100 als
besondere Kaufchance empfohlen. Jeder kann sich ja mal irren, aber als
Aktienguru um den Faktor 500 danebenhauen ist schon krass.

[Guru-Schreck]

Das ist das Problem bei Momentumaktien, sobald das Momentum weg ist,
wissen die Gurus nicht mehr was los ist. Avanex reiht sich da nur in eine
lange Liste von "Modeaktien", die einmal einen Hype haben und dann von
der Realität eingeholt werden.

[optical]

Avanex Announces Q2 Revenues of $8.3 Million
FREMONT, Calif., Jan. 23 /PRNewswire-FirstCall/ --

Avanex Corporation (Nasdaq: AVNX - news), pioneer of photonic processors that enable next-generation optical networks, today reported results for its fiscal year 2002 Second Quarter, which ended December 31, 2001.

Avanex President and Chief Executive Officer Paul Engle said, ``We have seen what appears to be a stabilization in the optical module and subsystem sector of the telecommunications industry. While overall demand in the telecommunications industry remains a major challenge, we are beginning to see demand for optical networking equipment increase very selectively as carriers focus on higher bandwidth systems with additional functionality at lower cost. We are working closely with our customers to develop products and technologies that solve these network issues, and believe we are in a very good position to capitalize on a strengthening market environment as that occurs.

``During this past quarter, we expanded our focus on those strategic operational areas that enhance future profitability: increasing key design initiatives with core customers, and enhancing our portfolio of modular and subsystem product and technology solutions that we bring to the market.

``We currently have under way a series of new product and technology initiatives that we expect will capture market traction over the next several quarters. For example, we expect to have another new and advanced intelligent optical product to present at the Optical Fiber Communications conference (OFC) in Anaheim, Calif., in March of this year. These new initiatives will serve as solid business drivers in the future as this market advances into next generation all optical solutions.

``We also are driving our research and development efforts through both external as well as internal means. For example, in the second quarter we acquired LambdaFlex to strengthen our technology portfolio in intelligent optical node solutions.

``On the customer front, in the last quarter we worked on several new project designs that have the potential for increasing our traction in the market. We continue to focus on these types of initiatives throughout our core customer base. We are working on expanding our tier one customer base through the introduction of new next-generation modules and subsystems for optical architectures.

``On the operational front, we have implemented new processes and procedures to improve our efficiency. This includes increased levels of outsource manufacturing in China and new product management processes.``

Engle noted that, ``We believe that we have the right strategy to drive Avanex higher in the value chain of our customer base by providing next generation optical modules and subsystems that lower cost, increase functionality and increase performance.``

Financial Results

Net revenues for the second quarter of fiscal 2002 ended December 31, 2001 were $8.3 million, an increase of $1.1 million over the company`s revenues of $7.2 million for the first quarter of fiscal 2002 ended September 30, 2001. Net revenue for the second quarter of fiscal 2002 decreased $39.6 million from $47.9 million in the second quarter of fiscal 2001 ended December 31, 2000.

Pro forma net loss for the second quarter of fiscal 2002 ended December 31, 2001 was $6.5 million, or $0.10 per share. This pro forma net loss excluded $12.3 million, net, for non-cash benefits from the settlement of non-cancelable purchase commitments, from the utilization of excess inventory, and from restructuring charge recovery; as well as non-cash charges for amortization of deferred stock compensation, acquired in-process research and development for LambdaFlex, and the amortization of intangibles including goodwill for the Holographix acquisition. The pro forma net loss also included the benefit from reducing warranty accrual by $1.3 million, or $0.02 per share. The second quarter fiscal 2002 pro forma net loss compared with a pro forma net loss of $6.8 million in the first quarter of fiscal 2002 ended September 30, 2001. Pro forma net income for the prior year`s second quarter ended December 31, 2000 was $4.1 million, or $0.06 per share.

Net loss determined under generally accepted accounting principles was $18.8 million, or $0.29 per share. This GAAP net loss included $12.3 million, net, for non-cash benefits from the settlement of non-cancelable purchase commitments, from the utilization of excess inventory, and from restructuring charge recovery; as well as non-cash charges for amortization of deferred stock compensation, acquired in-process research and development for LambdaFlex, and the amortization of intangibles including goodwill for the Holographix acquisition. In addition, the warranty accrual was reduced by $1.3 million, or $0.02 per share, to align it with lower estimates of related future costs. The second quarter fiscal 2002 GAAP net loss of $18.8 million, or $0.29 per share, compared to a net loss of $11.3 million, or $0.20 per share, for the same period in the prior year and a net loss of $21.0 million, or $0.34 per share, for the first quarter of fiscal 2002 ended September 30, 2001.

Outlook

In commenting on the company`s outlook, Avanex President and CEO Engle said, ``There is a slight improvement in short-term visibility in the company`s business sector, but volatility and uncertainty remain high. We are hopeful that the selective improvement in new orders will continue. Avanex expects third quarter of fiscal 2002 ending March 31, 2002 revenues to range between $9 million and $10 million, and pro forma EPS for the third fiscal quarter of fiscal 2002 of around 12 cents loss per share.``

Conference Call

Avanex will host a conference call scheduled today, January 23, at 4:30 p.m. EST. The number for the conference call is 877-352-5208. The password is ``Photonics.`` A replay of the conference call will be available through January 30, 2002, at 888-568-0351.

About Avanex

Avanex designs, manufactures and markets photonic processors for the communications industry. Avanex`s photonic processors offer communications service providers and optical systems manufacturers greater levels of performance and miniaturization, reduced complexity and increased cost-effectiveness as compared to current alternatives.

Avanex was incorporated in 1997 and is headquartered in Fremont, Calif. In addition to a development and manufacturing facility in Fremont, the Company also maintains The Photonics Center(TM) in Richardson, Texas. To learn more about Avanex, visit its web site at: www.avanex.com.

Forward-looking Statements

This press release contains forward-looking statements including forward-looking statements regarding new product and technology initiatives, new project designs, our expected results for our fiscal third quarter, prevailing market conditions and our ability to successfully introduce new products. Actual results could differ materially from those projected in or contemplated by the forward-looking statements. Factors that could cause actual results to differ include general economic conditions, the pace of spending and timing of economic recovery in the telecommunications industry and in particular the optical networks industry, the Company`s inability to sufficiently anticipate market needs and develop products and product enhancements that achieve market acceptance, any slowdown or deferral of new orders for our products, higher than anticipated expenses the Company may incur in future quarters or the inability to identify expenses which can be eliminated, and the impact of the Company`s restructuring on its ability to achieve increased efficiencies in its operations. In addition, please refer to the risk factors contained in the Company`s SEC filings including its most recently 10-Q filed with the SEC on November 8, 2001.

Avanex undertakes no obligation to publicly release the result of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.


AVANEX CORPORATION
Pro forma Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)

Three Months Ended Six Months Ended
December 31, December 31,
2001 2000 2001 2000
Net revenue $8,297 $47,948 $15,475 $82,715
Cost of revenue 6,811 25,305 13,367 44,560
Gross profit (loss) 1,486 22,643 2,108 38,155

Operating expenses:
Research and development 5,950 10,703 11,732 18,868
Sales and marketing 1,562 4,758 3,031 8,723
General and administrative 1,705 3,809 3,509 6,715
Total operating expenses 9,217 19,270 18,272 34,306
Income (loss) from operations (7,731) 3,373 (16,164) 3,849
Other income, net 1,197 3,509 2,804 6,924
Income (loss) before income
taxes (6,534) 6,882 (13,360) 10,773
Income taxes -- 2,754 -- 4,310
Net income (loss) $(6,534) $4,128 $(13,360) $6,463

Basic net income (loss)
per common share $(0.10) $0.07 $(0.21) $0.12

Weighted average shares used in
computing basic net income
(loss)
per common share 63,797 56,914 62,528 55,991

Diluted net income (loss)
per common share $(0.10) $0.06 $(0.21) $0.09

Weighted average shares used in
computing diluted net income
(loss) per common share 63,797 68,193 62,528 68,249


The above pro forma amounts have
been adjusted to exclude the
following items:
Stock compensation $6,191 $12,791 $15,130 $33,932
Acquired in-process research
and development 5,445 -- 5,445 4,700
Amortization of intangibles 2,619 2,619 5,238 4,417
Restructuring charge
(recovery) (120) -- (451) --
Provision for excess inventory -- -- 2,915 --
Settlement of non-cancelable
purchase commitment (590) -- (590) --
Utilization of excess
inventory (1,260) -- (1,260) --
$12,285 $15,410 $26,427 $43,049



AVANEX CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)

December 31, June 30,
2001 2001
Assets
Current assets:
Cash and cash equivalents $63,788 $79,313
Short-term investments 96,939 125,278
Accounts receivable, net 3,230 13,977
Inventories 3,723 6,451
Other current assets 948 877
Total current assets 168,628 225,896
Long-term investments 41,354 16,462
Property and equipment, net 23,117 25,864
Intangibles, net 44,562 42,724
Other assets 626 643
Total assets $278,287 $311,589

Liabilities and stockholders`
equity
Current liabilities:
Short-term borrowings $6,756 $6,488
Accounts payable 5,606 13,506
Current portion of accrued
restructuring 3,678 7,333
Other accrued expenses 2,508 6,563
Warranty 4,266 5,589
Current portion of long-term
obligations 5,622 5,060
Accrued compensation and
related expenses 3,541 4,756
Deferred revenue 16 1,948
Total current liabilities 31,993 51,243
Long-term obligations 10,257 12,527
Accrued restructuring 2,013 2,465
Total liabilities 44,263 66,235

Commitments and contingencies

Stockholders` equity:
Common stock 69 65
Additional paid-in capital 499,708 489,204
Notes receivable from
stockholders (1,316) (2,048)
Deferred compensation (15,601) (32,818)
Accumulated deficit (248,836) (209,049)
Total stockholders` equity 234,024 245,354

Total liabilities and
stockholders` equity $278,287 $311,589



AVANEX CORPORATION
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)

Three Months Ended Six Months Ended
December 31, December 31,
2001 2000 2001 2000
Net revenue $8,297 $47,948 $15,475 $82,715
Cost of revenue 4,961 25,305 14,432 44,560
Gross profit (loss) 3,336 22,643 1,043 38,155

Operating expenses:
Research and development 5,950 10,703 11,732 18,868
Sales and marketing 1,562 4,758 3,031 8,723
General and administrative 1,705 3,809 3,509 6,715
Stock compensation 6,191 12,791 15,130 33,932
Acquired in-process
research and development 5,445 -- 5,445 4,700
Amortization of
intangibles 2,619 2,619 5,238 4,417
Restructuring charge
(recovery) (120) -- (451) --
Total operating expenses 23,352 34,680 43,634 77,355
Loss from operations (20,016) (12,037) (42,591) (39,200)
Other income, net 1,197 3,509 2,804 6,924
Loss before income taxes (18,819) (8,528) (39,787) (32,276)
Income taxes -- 2,754 -- 4,310
Net loss $(18,819) $(11,282) $(39,787) $(36,586)

Basic and diluted net loss
per common share $(0.29) $(0.20) $(0.64) $(0.65)

Weighted average shares used
in
computing basic and
diluted net loss
per common share 63,797 56,914 62,528 55,991

SOURCE: Avanex Corporation