Corvis Announces Agreement with Major Global CarrierTelefonica to Deploy Corvis` Next - 500 Beiträge pro Seite

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Corvis Announces Agreement with Major Global Carrier
Telefonica to Deploy Corvis` Next-Generation Optical Networking Products
COLUMBIA, Md.--(BUSINESS WIRE)--July 26, 2001--Corvis Corporation (NASDAQ:CORV - news), a leading provider of intelligent optical networking solutions, today announced that Corvis and Telefonica, the leading telecommunications operator in the Spanish and Portuguese-speaking world, have reached an agreement for Corvis` next-generation optical networking products. Corvis expects to finalize contractual details within a week and to begin shipping during the second half of 2001 for deployment into Telefonica`s network. This agreement will extend Corvis` reach into the global market.

Under the proposed terms of the agreement, Corvis will supply its CorWave XF repeaterless link optical networking product for deployment into Telefonica`s existing Penbal-5 repeaterless pure silica core fiber (PSCF) cable system, connecting the island of Mallorca with Telefonica`s backbone network in Spain.

``Corvis` next-generation products will enable us to achieve our goal of network build-out and expansion, while enhancing our business opportunities,`` said Enrique Salvatierra, manager of Satellite and Submarine Systems, Telefonica de Espana S.A.U. ``With Corvis, we will be able to connect our island network to our mainland network using our existing infrastructure, reducing both the capital and operational expenses of expanding our network.``

``Telefonica is leading the industry`s shift toward next-generation optical services by using cutting-edge technology to maximize the value of its network,`` said Dr. David Huber, president and CEO of Corvis. ``We are extremely proud to have Telefonica as a global customer and look forward to helping them expand their network.``

The CorWave XF product uses Corvis` proven amplification technology to enable carriers to transmit up to 800 gigabits per fiber for distances as long as 350 km without the use of in-line amplifiers. Eliminating in-line amplifiers in festoon, regional point-to-point and spur network applications cuts capital expenditures and operational costs dramatically, and speeds network deployment. This allows established and emerging carriers to produce revenue more rapidly.

Corvis` optical networking solutions are designed to reduce network costs and enable network service providers to offer advanced wavelength services to their customers at significantly lower costs. Service providers can leverage the benefits of Corvis-enabled optical networks to rapidly provision new services such as wavelength-on-demand, optical protection and restoration and dynamic service level agreements.

About Telefonica

Telefonica, SA is the leading Telecommunications Operator in the Spanish and Portuguese-speaking world. It is the number one Spanish multinational by market capitalization and one of the largest private telecommunications companies in the world. Its most important markets are Spain and Latin America. In the last few years Telefonica has begun to expand into other regions, such as Europe and North Africa, mainly through mobile telephone licenses and company services. Telefonica is also present in Asia, primarily through Internet (Terra Lycos) and CRM (Atento) activities. Telefonica operates in 48 countries on all five continents. At the end of March 2001, the Company currently had 66.9 million managed customers for its fixed and mobile telephony and Pay-TV (71.3 million total customers).

About Corvis

Corvis Corporation is a leading provider of next-generation optical services networks founded by Dr. David Huber, a pioneer in the field of optical communications. By deploying the industry`s first all-optical network, Corvis has revolutionized the way communications traffic is moved in the new Internet-driven economy. Corvis products and services deliver all-optical network intelligence and mesh network capabilities providing telecom service providers with end-to-end core networking solutions, which make them more competitive in the market. Corvis` next-generation products enable these carriers to offer their customers a vast array of advanced wavelength services that dramatically lower capital and operational costs, while generating increased revenue. For more information, call Corvis at 443-259-4000 or visit the Corvis web site at www.corvis.com.

Corvis, CorWave and the Corvis logo are trademarks and/or service marks of the Corvis Corporation. All other trademarks are the property of their respective owners.

Note: This announcement contains certain forward-looking statements that are subject to risks and uncertainties. Actual results could differ materially from those currently anticipated as a result of a number of factors, including, but not limited to, the risks and uncertainties discussed under ``Risk Factors`` and ``Management`s Discussion and Analysis of Financial Condition and Results of Operations`` in the Company`s filings with the Securities and Exchange Commission.


--------------------------------------------------------------------------------
Contact:

Corvis
Investor Relations:
Andrew G. Backman, 443/259-4600
Fax: [phone]
[e-mail]
or
Public Relations:
Keira N. Shein, 443/259-4006
Fax: [phone]
[e-mail]
or
Corvis EMEA Public Relations:
Sri Bhattacharya, [phone]
Fax: [phone]
[e-mail]

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Corvis Corporation Reports Revenues of $65.0 Million for the Second Quarter
Continued Commercial Deployments of Next-Generation Products and Services Drive Revenue
COLUMBIA, Md.--(BUSINESS WIRE)--July 26, 2001-- New Customers Added

Corvis Corporation (NASDAQ:CORV - news), a leading provider of intelligent all-optical networking solutions, today reported revenues of $65.0 million for its fiscal second quarter ended June 30, 2001. Revenues for the second quarter were generated by continued commercial deployment of both transport and switching products under the company`s contracts with Broadwing Communications Inc. and Williams Communications.

In the quarter, Corvis signed a multi-year contract for the deployment of its next-generation optical networking products with a major global telecommunications carrier. It also announced a field trial with EPIK Communications for its Multiband Edge Switch, the CorWave OCS. In addition, as announced today, Corvis and Telefonica, the leading telecommunications operator in the Spanish and Portuguese-speaking world, have reached an agreement for Corvis` next-generation optical networking festoon product, the CorWave XF.

``Corvis posted another solid quarter. We continued network deployments with our existing customers, expanded our product portfolio and added new customers.`` said Dr. David Huber, president and CEO, ``As our customers continue to deploy the Corvis solutions, other carriers as well as investors will be able to track their performance as clear evidence of the value of our product suite.``

Pro forma net loss for the current quarter was $32.2 million, or $0.09 loss per share, excluding goodwill and other intangible assets amortization expense, equity-based expense and one-time restructuring and other charges compared with a pro forma net loss of $22.4 million, or $0.07 loss per share for the second quarter of 2000.

Reported net loss was $821.8 million, or $2.36 loss per share, for the current quarter as compared with a reported net loss of $100.7 million, or $2.51 loss per share for the second quarter of 2000.

In the quarter, Corvis recorded restructuring and other charges totaling $714.6 million. These charges comprised the following:

a $99.2 million charge associated with a write-down of excess and obsolete materials, excess purchase commitments, and the discontinuance of certain product lines
a $18.4 million charge related to recent workforce reductions, consolidation of excess facilities, and the write-down of idle equipment
a $588.3 million charge for the write-down of goodwill associated with the acquisition of Algety Telecom
a $8.7 million charge for the write-down of certain equity investments
Quarterly Highlights

Corvis announced that Qwest Communications International Inc. will deploy Corvis` CorWave ON product suite in the development of a nationwide all-optical express network. In addition, Qwest and Corvis announced they will also work together to develop OC-768 next-generation technologies.
Corvis announced that it has enhanced the capacity and flexibility of its CorWave ON product suite. These enhancements offer carriers unprecedented capacity and a seamless evolution to an all-optical express network. The CorWave ON provides up to 2.8 Tb/s transmission capacity in each direction and 16.8 Tb/s switching capacity. This is a seven-fold increase from Corvis` previous transmission and switching products.
Corvis announced the introduction of the CorWave OCS, the industry`s first multiband switch that is scalable 11.5 Tb/s. The OCS integrates electrical and optical switching on a single Corvis network platform, enabling seamless network management across multiple networks and architectures.
Corvis and EPIK Communications agreed to field trial Corvis` CorWave OCS. After successful completion of the field trial, EPIK is expected to deploy the CorWave OCS at major metro aggregation points in its network by early next year.
Webcast Information

In conjunction with this announcement, Corvis will host a conference call of its second quarter financial results today at 5:30 pm EST. The live broadcast of the conference will be available via Corvis` website, www.corvis.com. An archived audio of the conference call will also be available for replay purposes through the Corvis website.

About Corvis

Corvis Corporation is a leading provider of next-generation optical services networks founded by Dr. David Huber, a pioneer in the field of optical communications. By deploying the industry`s first all-optical network, Corvis has revolutionized the way communications traffic is moved in the new Internet-driven economy. Corvis products and services deliver all-optical network intelligence and mesh network capabilities providing telecom service providers with end-to-end core networking solutions, which make them more competitive in the market. Corvis` next-generation products enable these carriers to offer their customers a vast array of advanced wavelength services that dramatically lower capital and operational costs, while generating increased revenue. For more information, call Corvis at 443/259-4000 or visit the Corvis web site at www.corvis.com.

Corvis, CorWave and the Corvis logo are trademarks and/or service marks of the Corvis Corporation. All other trademarks are the property of their respective owners.

Investor Note Regarding Forward Looking Statements

This announcement contains certain forward-looking statements that are subject to risks and uncertainties. Actual results could differ materially from those currently anticipated as a result of a number of factors, including, but not limited to, the risks and uncertainties discussed under ``Risk Factors`` and ``Management`s Discussion and Analysis of Financial Condition and Results of Operations`` in the company`s filings with the Securities and Exchange Commission.

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CORVIS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)

Quarter Ended Six Months
June 30, July 1, June 30, July 1,
2001 2000 2001 2000
(Unaudited) (Unaudited) (Unaudited) (Unaudited)

Revenues $ 64,959 $ - $ 149,046 $ -

Cost of sales 139,708 - 192,611 -
---------------------------------------------

Gross profit (74,749) - (43,565) -

Operating expenses:
Research and
development 41,950 13,536 82,925 33,657
Sales and marketing 15,101 4,367 30,512 9,003
General and
administrative 8,533 5,468 19,512 8,145
Goodwill and other
intangible assets
amortization
expense 49,631 106 101,876 197
Equity-based
expense 25,439 37,890 51,072 38,635
Purchased research
and development - 40,300 - 40,300
Restructuring and
other charges 606,735 - 606,735 -
---------------------------------------------
Operating loss (822,138) (101,667) (936,197) $(129,937)

Interest and other
income(expense), net 306 925 13,536 2,365
---------------------------------------------
Net loss $(821,832) $(100,742) $(922,661) $(127,572)
=============================================

Weighted average
number of common
shares outstanding
(in thousands) 347,909 40,077 345,172 38,595

Basic and diluted net
loss per common
share $ (2.36) $ (2.51) $ (2.67) $ (3.31)
=============================================




CORVIS CORPORATION

PRO FORMA
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (b)
(Dollars in thousands, except per share data)

For Discussion Purposes Only

Quarter Ended Six Months
June 30, July 1, June 30, July 1,
2001 2000 2001 2000
(Unaudited) (Unaudited) (Unaudited) (Unaudited)

Revenues $64,959 $ -- $149,046 $ --

Cost of sales 40,542 -- 93,445 --
-----------------------------------------------

Gross profit 24,417 -- 55,601 --

Operating expenses:
Research and
development 41,950 13,536 82,925 33,657
Sales and
marketing 15,101 4,367 30,512 9,003
General and
administrative 8,533 5,468 19,512 8,145
-----------------------------------------------
Pro forma
operating loss (41,167) (23,371) (77,348) (50,805)


Interest and
other income,
net 8,988 925 22,218 2,365

-----------------------------------------------
Pro forma net loss $(32,179) $(22,446) $(55,130) $(48,440)
===============================================
Weighted average
number of common
shares
outstanding
(in thousands)
(a) 347,909 332,653 345,172 332,653

Pro forma net
loss per
common share
$(0.09) $(0.07) $(0.16) $(0.15)
===============================================

(a) For the periods ended July 1, 2000, the assumed number of common
shares outstanding are equal to 332,652,750, the amount of common
stock outstanding on July 28, 2000, after the Company`s initial
public offering and the concurrent private placement.

(b) Pro forma results exclude one-time restructuring and other
charges, goodwill and other intangible assets amortization expense
and equity-based expense. For the periods ended June 30, 2001,
restructuring and other charges of $ 714.6 million recorded as
$99.2 million to Cost of Sales, $606.7 million to Operating
Expenses, including $588.3 million for the write-down of goodwill
related to the Algety Telecom acquisition, and $ 8.7 million to
Interest and Other Income(Expense) for the write-down of certain
investments.


CORVIS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)



June 30, December 30,
2001 2000
(unaudited)
Assets
Current assets:
Cash and cash
equivalents $771,606 $1,024,758

Trade accounts
receivable 67,439 16,085
Inventory, net 177,065 219,414
Other current assets 27,174 26,802
---------- ----------
Total current assets 1,043,284 1,287,059

Restricted cash,
non-current 46,292 46,292
Property and
equipment, net 173,582 106,681
Goodwill and intangible
assets, net 162,064 929,204
Other non-current assets 22,435 12,600
----------- -----------
Total assets $1,447,657 $2,381,836
=========== ===========

Liabilities, redeemable
stock and stockholders`
equity
Total current liabilities $123,971 $115,019

Total liabilities 174,667 165,243
Total redeemable stock 30,000 30,000
Total stockholders`
equity (a) 1,242,990 2,186,593
---------- ----------
Total liabilities,
redeemable stock
and stockholders`
equity $1,447,657 $2,381,836
========== ==========


(a) $0.01 per share par value; 425,121,094 authorized shares;
359,626,829 shares issued and outstanding shares as of
6/30/01. 348,039,489 shares issued and outstanding as of
12/30/00.