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Redback Networks mit deutlicher Umsatzsteigerung - 500 Beiträge pro Seite


WKN: 318271

Neuigkeiten zur Redback Networks Inc Aktie

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06.04.04

24.01.04


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finance online-Nachricht (USA)
Mittwoch, 11.04.2001, 22:38
Redback Networks mit deutlicher Umsatzsteigerung

Der amerikanische Internet-Netzwerkspezialist Redback Networks meldete am heutigen Tag seine Zahlen für das abgelaufene Quartal und damit einen Umsatz von 90,9 Millionen Dollar nach 34,2 Millionen Dollar im Vorjahresquartal.


In Bezug auf den gemeldeten Verlust konnte Redback die Erwartungen der Analysten übertreffen. Der Verlust lag demnach bei 13 Cents je Aktie nach 1 Cent im Vorjahresquartal. Die Schätzungen von Analysten beliefen sich auf einen Verlust von 15 Cents je Aktie.


Im nachbörslichen Handel notiert die Aktie 1,9% im Plus bei 16,25 Dollar.

info@finance-online.de
April 11 5:34 PM ET
Redback Beats Diminished Street Expectations


SAN JOSE, Calif. (Reuters) - Internet infrastructure provider Redback Networks Inc. (NasdaqNM:RBAK - news) on Wednesday posted a narrower-than-expected first-quarter loss and said net revenues jumped 166 percent from the prior-year period.

Redback, which sells equipment that lets telecommunications companies and Internet service providers manage the services and accounts of broadband subscribers, reported an operating loss of $18.4 million, or 13 cents per share, excluding acquisition-related, stock compensation, restructuring and inventory charges. A year ago, it posted a profit of $1.4 million, or 1 cent per share.

Redback was expected to post an operating loss of 15 cents per share, down from a profit of 4 cents that analysts had previously expected, according to market research firm Thomson Financial/First Call.

Redback warned on April 2 that it would report a first-quarter loss and lay off 12 percent of its work force, or 150 people, amid a slowdown in the U.S. economy and curtailed telecommunications spending.

Net revenues jumped to $90.9 million from $34.2 million a year ago.

Redback shares rose to $16.99 in after-hours trading on Instinet after the earnings were announced. Shares ended regular trading on Nasdaq Wednesday down 10 cents to $15.84, around 93 percent off its 52-week high of $181.

Redback`s chief rival in the optical networking market, Cisco Systems Inc. (NasdaqNM:CSCO - news), is off 77 percent from its 52-week high.

Before pro-forma adjustments, Redback`s net loss for the first quarter of 2001 was $400.5 million, or $2.92 per share, compared with a net loss of $85.2 million, or 96 cents, for the same period in the prior year.

``Despite the slowdown within the telecommunications industry, we have confidence in the long-term growth of the broadband marketplace. In addition, the next-generation metro optical market continues to show strong promise,`` Vivek Ragavan, president and CEO of Redback, said in a statement. ``We have taken steps to improve Redback`s operational performance and feel confident that our current products, as well as those in development, will provide the company with a strong competitive advantage when the industry rebounds.``
Nachbörslich schießt Redback wieder deutlich nach oben und notiert
fast 16% im Plus bei 18,49$, ungefähr 21 Euro, nachdem die Aktie
zu Börsenschluß mit ca. 10 Cents im Minus lag. Die besser als erwartet
ausgefallenen Quartalszahlen lassen nun auf mehr hoffen, da auch Yahoo
nicht noch mehr enttäuscht hatte und der Markt sich nun darauf einstellen
könnte, daß bei manchen Firmen nun Kaufkurse erreicht sind.


dakinky
Hoffentlich nicht! Redback soll Cisco ruhig weiter Kunden abspenstig
machen!





Redback Networks – schlägt Cisco jetzt zu?

Die Aktien von Redback Networks [Nasdaq: RBAK Kurs/Chart ] explodieren im aktuellen Handel an der Wall Street um 11,1 Prozent auf 17,60 Dollar. Im frühen Geschäft waren die Titel bis auf 14,90 Dollar eingeknickt, bevor Gerüchte über eine mögliche Übernahme des Unternehmens in den Markt schwappten. Redback produziert Systeme zur Verwaltung von DSL-Anschlüssen. 
Als potenzieller Käufer wird den Meldungen zufolge der Netzwerkriese Cisco Systems [Nasdaq: CSCO Kurs/Chart ] gehandelt. 
Analysten stehen den Gerüchten eher skeptisch gegenüber. Der Finanzdienst Briefing.com ist der Ansicht, Cisco habe genug Produkte in seinen Regalen, die denen von Redback ebenbürtig seien. Ein Deal würde daher kaum einen Sinn ergeben und sei daher unwahscheinlich.  

© 12.04.2001 www.stock-world.de

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[Druckversion]
12.04.2001 19:35
mw
hi, hat jemand eine Ahnung warum Redback die ganzen
Kurssteigerungen der letzten Tage kaum mitgemacht hat?
wundert mich schon,
Grüsse minni
Warum kaum mitgemacht ? Gestern war´s etwas enttäuschend bei -6,5% am Nasdaq, das hatte kaum ein vegleihbarer Wert. Allerdings sind sie von 9,77 $ immerhin wieder auf über 20 $ geklettert, also von kaum mitgemacht kann hier keine Rede sein. Die Quartalszahlen waren eben doch etwas enttäuschend. Aber alles in allem würde ich mir bei Redback keine Sorgen machen...
25.04. 17:26
Gerüchte um Redback Networks
--------------------------------------------------------------------------------
(©BörseGo - http://www.boerse-go.de)

Aus Kreisen des Investmenthauses Robertson Stephens werden Gerüchte lanciert, dass das DSL bezogene SMS-Business von Redback Networks in den letzten Wochen einen guten und ansteigenden Verlsuf genommen habe. Aus dem Optical Segment seien jedoch unterschiedliche Signale zu empfangen. Robertson Stephens ist daher der Meinung, dass es für das Unternehmen schwierig werden könnte die Erwartungen des zweiten Quartals zu erfüllen, wenn der Optical Bereich schwach bleibe.

Momentan notiert Redback Networks mit 0,6% knapp im Minus.

weiss jemand mehr? vielleicht ne amerikanische quelle?

bye siscoinvestor
Komische Meldung "Gerüchte"... der eine Bereich läuft wohl ganz gut, für die Optoeletronik ist der Markt noc nicht ganz reif, das weiß doch sowieso jeder.
www.boerse-go.de
Diverse Gerüchte:
.....
Aus dem Umfeld der Investmentbank Thomas Weisel werden Gerüchte laut, wonach das Netzwerkunternehmen Redback Networks nicht in der Lage sein soll die erwarteten Zahlen zu erfüllen. Thomas Weisel soll der Meinung sein, dass die Schätzungen nach unten korrigiert werden müssen.

Hmm.

Gruss

siscoinvestor
Wenn Weisel das denkt dann soll er´s denken. Vielleicht möchte Herr Weisel ja auch nur billig zukaufen ? ...und überhaupt wer ist Herr Weisel das Wiesel :laugh: Analysten sind mir einfach zu ANAL geworden :D
Naja, trotz dieses "sensationellen" Analysten Weisel schließt Redback heute wieder eeutlich im Plus...
Aktuell (21.49 h) bei 21,56 $ (Plus 8,3 %)
Einen so großen Einfluß scheint dieser Weisel also nicht zu haben...

Gruß Lennistar
Allein schon der Name... Weisel das weise Wiesel lol. Naja also solches Geschwätz schockt mich echt nicht mehr, ganz im Gegenteil kann man oft negative Äußerungen zum Kauf nutzen. Aber was Weisel empfiehlt oder nicht interessiert wohl so ziemlich kein Schwein auf diesem Planeten :laugh:
Thomas Weisel Partners: Banging on the bulge bracket doors
By the Editors
Red Herring
May 7, 2001


Ownership Private
Location San Francisco, CA
Founded 1999
CEO Thomas Weisel
Employees 800
Sector Financial services
Web site http://www.tweisel.com/
THE HERRING TAKE Thomas Weisel Partners is winning M&A and underwriting business that once belonged to larger rivals. Its private equity operations give it access to a solid and growing pipeline of banking customers.
MARKET Provides investment banking, institutional brokerage, private client services, and private-equity investing and asset management. Last year, it participated in $30 billion in equity offerings, including 42 IPOs, 32 follow-on offerings, 13 private placements, and seven convertible offerings. Also advised on 46 merger and acquisition transactions with a total value of $76 billion, including advising SDL in its $41 billion sale to JDS Uniphase (Nasdaq: JDSU), the largest technology acquisition in history.
STRATEGY Expects to generate the majority of 2001 revenue growth from its brokerage and M&A operations. Launched Scudder Weisel Capital, a joint venture with Scudder Kemper Investments, in January 2001, targeting individuals with more than $1 million in investable assets. The firm`s growing private equity practice, coupled with significant hires in investment banking, increases its reliance on capital markets. Competes with Goldman Sachs (NYSE: GS), Credit Suisse First Boston, Morgan Stanley Dean Witter (NYSE: MWD), and Robertson Stephens.
MANAGEMENT CEO founded Montgomery Securities in 1971 and served as its chairman and CEO until 1998.
FINANCIALS Profitable since April 1999, the firm`s third month of operation. Revenue in 2000 was $474 million. In January 2000, received a $100 million strategic investment from pension fund provider CalPERS, raising total private backing to $155 million.
RELATED STORIES
Pop goes the Weisel
Thomas Weisel Partners takes off



Metro-Optix: One box fits all metro protocols
By the Editors
Red Herring
May 7, 2001


Ownership Private
Location Allen, TX
Founded 1999
CEO Arun Bellary
Employees 300
Sector Communications equipment
Web site http://www.metro-optix.com/
THE HERRING TAKE If blue-chip telecoms approve of its product, Metro-Optix will be one optical networking company worth following.
MARKET Makes hardware used in the access part of metropolitan optical networks. Combines multiple protocols like synchronous optical network, IP, and asynchronous transfer mode in one device. Total metropolitan equipment market is expected to top $2 billion by 2004.
STRATEGY Spun off from Ericsson (Nasdaq: ERICY) in December 1999. Company`s metro access device is in beta testing with two of the largest U.S. phone companies. Company is betting that its small footprint and one-box-fits-all strategy will make it a market leader. Its product, CityStream, competes with similar offerings from Cisco Systems (Nasdaq: CSCO), Ciena (Nasdaq: CIEN), and Redback Networks (Nasdaq: RBAK). Major challenge: to compete with larger companies that provide vendor financing as an incentive to buy from them.
MANAGEMENT Arun Bellary, a data networking industry veteran, serves as chairman and CEO. Was previously the vice president and general manager of Ericsson`s broadband access products business.
FINANCIALS Raised a first round of $28 million in April 2000 from Chase Capital Partners, InterWest Partners, Sevin Rosen Funds, and CenterPoint Ventures; also received $8 million in equipment financing from Silicon Valley Bank and Western Technology Investments. Raised a second round of $63 million in July 2000 from J. & W. Seligman, BlueStream Ventures, Essex Investment Management, Wasatch Funds, Deutsche Banc Alex. Brown, Weiss Peck & Greer Venture Partners, J.P. Morgan Chase, Star Ventures Management, Roger Engemann & Associates, Dain Rauscher Wessels, Ericsson, and prior investors. Total capital raised: $83 million.
RELATED STORIES
Adjusting optical focus
Optical offspring

www.redherring.com kann ich nur empfehlen. Sicher: Am besten ist hier die VC-Sektion, die uns nicht sooo weiterbringt, da wir dahinein kaum investieren können.

Grüsse

siscoinvestor
LAS VEGAS--Juniper Networks Chief Executive Scott Kriens predicts the telecommunications industry will consolidate, but savvy network equipment makers can still profit during the economic slowdown.

Although telecommunications carriers are spending less money and some struggling start-ups could go out of business, Kriens on Tuesday said service providers as a whole are still spending several hundred billion dollars on equipment to speed the Internet. The market, however, is big enough for some networking companies to succeed, he said.

"Some (service providers) will spend more. Some will spend less. The change will be in the single digits, up or down less than 10 percent," Kriens said in a news conference after his keynote speech Tuesday at the Network+Interop conference. "Certainly money will be spent. We`re talking about a couple hundred billion dollars. Clearly, (some) companies will be successful."
Kriens runs Juniper, a high-flying networking company that continues to snag market share away from Cisco Systems in the lucrative market for Internet routers, devices that ship data over the Net at high speeds.

Kriens declined to comment on Juniper`s current quarter, but in an interview last month he painted a rosy economic outlook for the company, even though other networking companies such as Cisco, Nortel Networks and Lucent Technologies have announced profit warnings recently.

During his keynote speech, Kriens gave a theory on why the economy has tanked so quickly and offered advice on how companies can survive the downturn.

Kriens says that because every company is "networked" or connected, the economy grew faster than ever before. For the same reason, the economy slowed faster than ever in the past year or so, he said.

"My theory is we`re operating on a networked economy. We tied together suppliers and customers and partners," he said.

Because of the networked economy, everything affects one another quickly, said Kriens, who used the analogy of a person stepping on car brakes. "We think we`re tapping them, and we`re slamming them and the cars are skidding to a stop. Companies next to one another are doing the same thing."

He also predicted that the overall technology sector will consolidate, with some companies going out of business.

To survive, tech companies need to take action during the economic slowdown, talk to their customers and give them what they need, he said. They can`t stay static and not build their next-generation technologies. But at the same time, they can`t try to jump into every market segment. Customers will buy products that give them quick, positive results on their investments, he said.

"The survivors and winners will correctly pick the boundaries in which they operate and don`t attempt to do something their customers don`t give any value," said Kriens, who added that Juniper is using such a strategy. "Return on investment has returned to prominence. The accountants are in charge, and that`s not a bad thing."
10:55AM Redback Ntwrks (RBAK) 17.60 -1.89: Stock down on Morgan Stanley`s pre-open comments that the qtr looks back-end loaded again with 70% of the business left for the last month (June). On the margin, believes that the pipeline looks to have improved in March and believes that inventories will be up in the quarter, but not by a huge amount.
ich trade redback in usa-ein riesenkäufer,der den kurs nachbörslich in die höhe treibt.kommt immer wieder mit neuen orders-bis jetzt etwa 25000 shares
hm,....was das bedeuten kann?
1 und 1 zusammenzählen. Morgan Stanley drückt vielleicht die Kurse für den Herrn der billig rein möchte. Ist doch wirklich nichts neues, so läuft´s eben :D. Vermutlich gibt´s bald eine Gewinnwarnung bei Redback, danach kann der Kurs wieder steigen.
hallo börsenkrieger
wo stammen die gerüchte der event.neuerlichen gewinnwarnung her?
oder wo gibt es nähere infos?
danke!
@rpg

Ich kenne keine solchen Gerüchte, außer Weisels Kommentar. Aber ob der Kurs sonst so eingebrochen wäre ? Naja abwarten mal.
@Börsenkrieger:
Nun-hoffe mal du hast recht.
schon etwas komisch:
vor einigen tagen fulminant zugelegt und dann dieser rückgang.
klar:es kann nicht ewig steigen aber so extrem runter,.....
außerdem habe ich den großteil davon beim shorten nicht ausgenützt.
aber ich halte ja redback auch auf long in europa.
mann,das waren zeiten als die noch über 100 waren!
grüße und schönes wochenende!
Hi rpg

Mein Schnitt liegt leider bei 52 €, werde aber erst mit Gewinn verkaufen, auch wenn´s Jahrzehnte dauert ;).
Mal sehen wie sich die Firma weiterentwickelt, zum Nachkaufen hab ich derzeit keine Lust, da sind mir ein paar Unsicherheitsfaktoren zuviel drin. Aber auffällig ist zur Zeit, daß es andere Netzwerkausrüster nicht ganz so zerlegt hat. Da will einfach ne bad new raus hab ich das Gefühl.
hi!
@börsenkrieger:
sehe das genauso wie du.
man wird wirklich das gefühl nicht los,dass da noch was negatives kommen könnte.beim us-trading erkennt man das ziemlich eindeutig,wie oftmals panikartig verkäufer versuchen die papiere loszuwerden.der spread ist zeitweise gewaltig-niemand wil rbak kaufen.
sehr komisch,......
andererseits:
oft kommt es ja wirklich anders als man denkt und dann,... :)
ich glaube derzeit ist wirklich alles bei rbak möglich.
ps:
hältst du nicht auch commerce one?
dann wären wir schon 2 !
auf eine bessere börsenwoche!
grüße
@rpg

Commerce one hab ich zumindest noch nicht. Möchte mir aber entweder Commerce one oder Ariba zulegen. Zu den Kursen einfach unwiderstehlich ;). Leider fehlt´s mir grad noch an Cash.
@rpg

Commerce one hab ich zumindest noch nicht. Möchte mir aber entweder Commerce one oder Ariba zulegen. Zu den Kursen einfach unwiderstehlich ;). Leider fehlt´s mir grad noch an Cash.
@börsenkrieger:
hast recht-ich meine den besten und günstigsten zeitpunkt erwischt man eh nie!
aber man wäre jetzt zumindest verdammt knapp dran!
Grüße
Muß irgendwo ein Nest sein! Bin ebenfalls am überlegen morgen
Redback nachzukaufen und bei Commerce One wieder einzusteigen.
C1 war die letzten Monate jedenfalls eine ideale Trading-Position.
Jetzt fehlt nur langsam mal die Nachhaltigkeit.
Na ja sind einige Konferenzen im Mai, vielleicht gibt´s da Impulse...


dakinky
Also irgendwas ist da tatsächlich im Busch: Abermals Riesenvolumen
bei RBAK heute und das an so einem, vom Gesamtvolumen her, mauen
Tag, schon auffällig... Ich habe das Gefühl da kommt die nächsten Tage
was!
vorgestern über ARCA nachbörslich,- und nach handelsbeginn gestern extreme käufe.einmal waren es auf einen schlag 25000 stück.
irgendwas kommt,.......
Tja, mal abwarten was da auf uns zukommt. Ist die Sau erstmal raus beruhigt ich der Kurs wieder.
REDBACK NETWORKS INC (RBAK)
Quarterly Report (SEC form 10-Q)
Item 2. Management`s Discussion and Analysis of Financial Condition and Results of Operations
All statements in this discussion that are not historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, including statements regarding Redback`s "expectations", "beliefs", "hopes", "intentions", "strategies", "estimates", "projections" or the like. Such statements are based on management`s current expectations, and Redback cautions investors that there can be no assurance that actual results or business conditions will not differ materially from those projected or suggested in such forward-looking statements as a result of the risk factors we have identified as material risks discussed in this Form 10-Q and other documents we file with the Securities and Exchange Commission, including our most recent reports on Form 8-K and Form 10-K, and any amendments thereto.

General

Redback Networks Inc. is a leading provider of advanced networking systems that enable broadband service providers to rapidly deploy high-speed access to the Internet and corporate networks. Our product lines, which consist of the Subscriber Management System, SmartEdge(TM), and Service Management product families, combine networking hardware and software. Together, these product families are designed to enable our customers to create end-to-end regional and national networks that will support major broadband access technologies, as well as the new services that these high-speed connections support.

Our Subscriber Management System, or SMS(TM), products connect and manage large numbers of subscribers across major high-speed access technologies. SMS products bridge the operational gap between the devices used to gather together high-speed Internet users (i.e., access concentrators) at one end of the network and the devices at the other end of the network used to connect to the Internet (i.e., routers). Our SmartEdge optical networking and multi-service products simplify the architecture of today`s regional voice and data networks, as well as improve their capacity and performance. The Service Management products allow service providers to publish, activate and manage Internet-related services and allow their customers to subscribe to these services on demand. The SMS and SmartEdge families of products are the only products we currently sell. We announced our Service Management products during the third quarter of 2000. We cannot be certain that the Service Management products, or any future products designed around this technology will be successfully developed or will achieve widespread market acceptance.

We sell our products through a direct sales force, resellers and distribution partners. Through March 31, 2001, substantially all of our revenues have been derived from sales to providers of digital subscriber line services. Our products are used by many of the largest carriers and service providers worldwide. We anticipate that a small number of customers will continue to account for a majority of our revenues.

Results of Operations

Net Revenues

Our net revenues increased 166% to $90.9 million for the three months ended March 31, 2001 from $34.2 million over the same three months in the prior year. The increase in net revenues in 2001 was primarily a result of increased unit sales of the existing SMS product family, which includes the SMS 10000, SMS 1800, and SMS 500, as well as sales for our SmartEdge 800. The increase in sales was attributable to increased worldwide marketplace acceptance of our products and resulting deployment of our products by our carrier and service provider customers, as well as higher average selling prices due to changes in product configurations.

Cost of Revenues; Gross Margin

Our cost of revenues increased 837% to $77.8 million for the three months ended March 31, 2001 from $8.3 million for the same period in the prior year as a result of increased sales of the SMS and SmartEdge product lines. In addition, as a result of certain product design changes initiated in the first quarter of 2001, we recorded charges for excess inventories and purchase commitments totaling approximately $24 million in the first quarter of 2001.

Gross margin, expressed as a percentage of net revenue, decreased to 14% for the three months ended March 31, 2001 compared to 76% for the same period in the prior year. The excess inventory charge of $24 million impacted gross margin by 26%. The remaining decrease can be attributed to a shift in product mix from the higher margin, SMS products to the lower margin, SmartEdge product. In addition, margins were affected by lower selling prices on higher volume customer purchases and competition for market share in international markets. The Company`s gross margin will fluctuate in the future based on several factors, which include our ability to:


1) Control the mix of sales between our SMS and SmartEdge product families,

2) Introduce competitive product enhancements and upgrades,
3) Introduce new products,
4) Successfully integrate the Service Management products into our current SMS and SmartEdge product lines,
5) Control inventory costs, and
6) Maintain current price levels in an increasingly competitive environment.

Operating Expenses
Research and Development. Our research and development expenditures increased 145% to $29.7 million for the three months ended March 31, 2001 from $12.1 million for the same period in the prior year. This increased investment was primarily attributable to the development of the SmartEdge product family and an overall increase in development personnel focusing on new products and existing product enhancements in part due to the merger of Siara Systems in March 2000 and acquisition of Abatis Systems in September 2000. To date, we have expensed research and development expenses as incurred. Because the market for our products is characterized by rapidly changing technology, industry standards and customer demands, our research and development expenses are expected to increase in future periods.

Selling, General and Administrative. Our selling, general and administrative expenditures increased 133% to $30.8 million for the three months ended March 31, 2001 from $13.3 million for the same period in the prior year. This increase was mainly due to the hiring of additional sales and administrative personnel in part due to merger of Siara Systems in March 2000 and acquisition of Abatis Systems in September 2000. These personnel were required to support our increased revenue. Additional marketing expenses were also incurred to promote our new and existing products. We anticipate that selling, general, and administrative expenses will continue to increase in future periods as the Company`s revenues grow.

Restructuring Charges. For the quarter ended March 31, 2001, we incurred a $23.3 million restructuring charge to account for three excess facilities at the end of the quarter. We intend to terminate or sublease all or part of these three facilities. The estimated costs to exit these facilities will be approximately $23.3 million. This estimate is based on current comparable rates for leases in the respective markets. Should facilities operating lease rental rates continue to decrease in these markets or should it take longer than expected to find a suitable tenant to sublease these facilities, the actual loss could exceed this estimate. For the quarter ended March 31, 2001, no material charges were made against the reserve. Future cash outlays are anticipated to continue through June 2012 unless the company negotiates to exit the leases at an earlier date.

In April 2001 we executed a plan to restructure our operations by effecting a reduction in the workforce by approximately 150 people, or 12% of our employee base. All functional areas of the Company were affected by the reduction. The affected employees are entitled to severance and other benefits pursuant to our benefits program. The Company expects to record a charge of approximately $4.0 million for these termination benefits in the second quarter of 2001.

Amortization of Intangible Assets. Amortization of intangible assets increased 347% to $315.4 million for the three months ended March 31, 2001 from the $70.6 million for the same period in the prior year due to amortization of goodwill and other intangible assets related to the merger with Siara Systems in March 2000 and the acquisition of Abatis in September 2000.

We are required under generally accepted accounting principles to review our intangible assets for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. We have experienced a decline in our stock price and market capitalization during the first quarter of 2001. In addition, our industry has begun to experience slower growth rates. If such factors continue, we are required to perform an impairment review of our goodwill and other intangible assets, which approximate $3.8 billion at March 31, 2001. This review could result in a significant charge to earnings in the period any impairment is determined.

In Process Research and Development (IPR&D). IPR&D was recorded in the first quarter of 2000 in the amount of $15.3 million in connection with the merger with Siara Systems.

Amortization of Deferred Stock Compensation. Our amortization of deferred stock compensation expense increased to $17.9 million for the three months ended March 31, 2001 from $535,000 for the same period in the prior year. The increase in amortization of deferred stock compensation can be attributed to the assumption of stock option grants in connection with acquisition activity and stock option grants made below fair market value to certain key employees.

Interest and Other Income. Interest and other income increased to $10.9 million for the three months ended March 31, 2001 from $1.0 million for the same period in the prior year due primarily to the interest earned on larger invested cash and investment balances.


The increase in cash and investment balances can be primarily attributed to the issuance of $500 million of convertible subordinated notes in March 2000.

Interest Expense. Interest expense increased to $7.4 million for the three months ended March 31, 2001 from $311,000 for the same period in the prior year due primarily to interest expense arising from our $500 million offering of convertible subordinated notes in March 2000.

Provision for Income Taxes. No provisions for income taxes have been recorded, as the Company has incurred net losses since inception.

Liquidity and Capital Resources

Our principal source of liquidity as of March 31, 2001 consists of approximately $380 million in cash, cash equivalents and short-term investments. Since our inception, we have financed our operations through both private and public sales of debt and equity securities, bank borrowings and equipment lease financing.

During the three months ended March 31, 2001, we used approximately $22 million from operating activities, as compared to the same period in the prior year where we used $10 million in operating activities. In the three months ended March 31, 2001, cash was used to fund increased inventory, partially offset by an increase in accounts payable and accrued liabilities. Our net accounts receivable balance decreased from $96 million at December 31, 2000 to $90 million at March 31, 2001, with our "Days Sales Outstanding" (DSO`s) increasing from 75 days to 90 days. The increase in DSO`s reflects the increasing percentage of our business that is occurring later in the final month of the quarter as our customers are delaying purchasing decisions, and a general slow down in the time companies are taking to pay their suppliers. We believe that these are trends occurring in the telecommunications equipment industry, and are not specific to us. We also believe that DSO`s of 90 days are within the current norms for the telecommunications equipment industry.

Investments in property and equipment increased to $28 million in the three months ended March 31, 2001 from $11 million in the same period in 2000. This increase consisted primarily of purchases relating to our new facilities, software and other related implementation costs associated with our new internal business applications system and purchases of machinery and equipment primarily related to our research and development organization. We expect our capital expenditures to remain a significant use of cash as we expand our research and development efforts and as our employee base grows. The timing and amount of future capital expenditures will depend primarily on our future growth.

We believe that our existing cash and investment balances and anticipated cash flows from operations will be sufficient to meet our operating and capital requirements for the next twelve months and for the foreseeable future thereafter. However, additional capital may need to be raised if (i) revenues grow rapidly which would require increased cash investments in accounts receivable and inventories, (ii) revenues and cash flow from operations are less than what we predict, or (iii) unexpected events require us to do so. The availability of additional capital is dependent on a number of factors including current market conditions and our financial condition, so additional capital may not be available at all, or may only be available on terms unfavorable to us, when we need it. Any additional issuance of equity or equity-related securities will be dilutive to our stockholders

Risk Factors

An investment in Redback common stock, or Redback convertible notes, involves a high degree of risk. In addition to the other information contained in this Form 10-Q, you should carefully consider the following risk factors we have identified as material risks before making an investment. Any of the following risks could harm our business, financial condition or results of operations. In such case, the trading price could decline and you may lose all or part of your investment. This Form 10-Q also contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in the forward-looking statements as a result of factors that are described below and elsewhere in this Form 10-Q.

Our business is difficult to evaluate because we have a limited operating history

We were founded in August 1996 and began shipping products in material quantities in the second quarter of 1998. You should consider the risks and difficulties frequently encountered by companies like us that are developing and selling products for new and rapidly evolving markets. Our ability to sell products and services, and the level of success, if any, we achieve, depends, among other things, on the level of demand for broadband access services, which is a new and rapidly evolving market. Our business strategy may be unsuccessful and we may not successfully address the risks we face.


We have a history of losses and expect to incur future losses

We incurred net losses of approximately $400.4 million for the three months ending March 31, 2001, and approximately $1.0 billion for the year ended December 31, 2000. As of March 31, 2001, we had an accumulated deficit of approximately $1.4 billion. We have incurred significant net losses in the past and expect to continue to incur significant net losses in the future.

To date, we have funded our operations from both private and public sales of equity securities and notes, from bank borrowings and by means of equipment lease financing. We expect to continue to incur significant product development, sales and marketing, and general and administrative expenses. As a result, we must generate significant revenues to achieve profitability. We may not sustain recent growth rates in our revenues. Further, we cannot be certain that we can attain profitability on a quarterly or annual basis in the future.

A decline in the demand for broadband access services would seriously harm our sales and operating results

Sales of our products depend on the increased use and widespread adoption of broadband access services, and the ability of our customers to market and sell broadband access services. Our sales and operating results would be materially adversely affected by reduced or delayed demand for our products if the use of broadband access services does not increase or if our customers` broadband access services are not well-received by the marketplace. Critical issues concerning use of broadband access services are unresolved and will likely affect use of broadband access services. These issues include:

o security;

o reliability;
o bandwidth;
o congestion;
o cost;
o ease of access; and
o quality of service.

Even if these issues are resolved, the market for products that provide broadband access to the Internet and to corporate networks could still fail to develop, or develop at a slower pace than anticipated. Although sales to the broadband service provider market have grown historically, this market is characterized by large and often sporadic purchases. Sales activity in this industry depends upon the stage of completion of expanding network infrastructures, the availability of funding, and the extent that broadband service providers are affected by regulatory, business and economic conditions and climate. Additionally, we expect that a general downturn in the domestic or international economic growth, or the perception that such a downturn is imminent will negatively affect the growth of the broadband access market and sales to broadband service providers as customers of ours and potential customers reduce network spending and otherwise curtail expansion opportunities.
Our quarterly operating results have and are expected to continue to fluctuate significantly, which could cause our stock price to be volatile or decline

The concerns we discuss under "Risk Factors" are likely to cause quarterly fluctuations in revenues and operating results. Additionally, our quarterly operating results are likely to be affected by other factors. These factors include the timing of significant sales to large customers, our ability to control expenses and the timing differences between when we incur expenses and when we realize benefits, if any, from such expenditures. A high percentage of our expenses, including those related to engineering, sales and marketing, research and development, and general administrative functions, are essentially fixed in the short term. As a result, if we experience delays in generating or recognizing revenue, our quarterly operating results are likely to be materially adversely affected. In the future, we may increase our operating expenses to expand our engineering and sales and marketing operations, broaden our customer support capabilities, develop new distribution channels, fund increased levels of research and development and build our operational infrastructure. If growth in our revenues does not outpace the increase in these expenses, our business, results of operations and financial condition could be materially adversely affected.


Because we rely on patent, trademark, trade secret and copyright laws both to protect our proprietary technology and to protect us against claims from others, any expenses associated with any litigation, including litigation involving our intellectual property would also affect our quarterly operating results.

Due to these and other factors discussed in this "Risk Factors" section, we believe that quarter-to-quarter comparisons of our operating results may not be meaningful. You should not rely on our results for one quarter as any indication of our future performance. It is likely that in some future quarter our operating results may be below the expectations of public market analysts or investors. If this occurs, the price of our common stock and convertible notes would likely decrease.

Our lengthy and variable sales cycle makes it difficult for us to predict if or when a sale will be made

The timing of our revenue is difficult to predict because of the length and variability of the sales cycle for our products. Customers often view the purchase of our products as a significant and strategic decision. We believe our financial results and prospects will be impacted by the current economic downturn in the United States as customers and potential customers globally assess its effect on their business, which can result in a deferral or cancellation of purchasing decisions for products such as ours. While our customers are evaluating our products and before they place an order with us, we may incur substantial sales and marketing expenses and expend significant management efforts. In addition, product purchases are frequently subject to unplanned administrative, processing and other delays. This is particularly true for larger customers for whom our products represent a very small percentage of their overall purchasing activity. These customers are often engaged in multiple simultaneous purchasing decisions, some of which may pertain to more immediate needs and absorb the immediate attention of the customer. We believe that certain customers` sales decisions are not made until the final weeks, or days, of the calendar quarter which leads to greater uncertainty for us in predicting the timing and amount of our revenues. If sales forecasted from a specific customer for a particular quarter are not realized in that quarter or at all, our operating results could be materially adversely affected.

Our sales would suffer if one or more of our key customers substantially reduced its orders for our products

In each of the periods presented, we have had at least one customer that accounted for 10% or more of our total revenue in the quarter. In the first quarter of 2001, Qwest Communications International Inc., Williams Communications, Inc., and Verizon Communications, Inc. accounted for 28%, 15% and 14% of our total revenue, respectively. For the twelve months ended December 31, 2000, sales to Qwest Communications International Inc. and Genuity Inc. accounted for 15% and 10% of our total revenue, respectively. We anticipate that a small number of customers will continue to account for a majority of our quarterly revenue. However, we do not have any contracts or other agreements that guarantee continued sales to these or any other customers. If our customers alter their purchasing habits, encounter a shortage of capital or reevaluate their need for our products or purchase competing products, or if we fail to receive a large order in any period, our business, results of operations and financial condition would be materially adversely affected due to shortfall in revenues. Because we sell primarily to major corporate customers, our business also depends on general economic and business conditions that are likely to affect these customers.

Our operating results suffer due to risks associated with mergers and acquisitions generally

We expect to continue our acquisition and expansion strategy. Future acquisitions could materially adversely affect our operating results as a result of dilutive issuances of equity securities and the incurrence of additional debt. In addition, the purchase price for many of these acquired businesses likely will significantly exceed the current fair values of the tangible net assets of the acquired businesses. As a result, we would be required to record material goodwill and other intangible assets that would result in significant amortization charges in future periods. These charges, in addition to the financial impact of such acquisitions, could have a material adverse effect on our business, financial condition and results of operations. We cannot forecast the number, timing or size of future acquisitions, or the effect that any such acquisitions might have on our operating or financial results. Further, we must successfully combine the acquired businesses. We may not be able to integrate the technologies and operations quickly and smoothly. In the event that our integration does not go smoothly, serious harm to our business, financial condition and business prospects may result. Integrating acquired businesses entails significant diversion of management`s time and attention. The integration of technology, products and services may require the partial or wholesale conversion or redesign of some or all of our technologies, products and services or those of the acquired business. In addition, we may be required to spend additional time or money on integration that would otherwise have been spent on developing our business and services or other matters.

In addition to our merger with Siara Systems, Inc. completed on March 8, 2000, we acquired Abatis Systems Corporation on September 28, 2000. We accounted for the Siara merger and the Abatis acquisition using the purchase method of accounting. The results of operations of Siara and Abatis are included in our consolidated financial statements for all periods after March 8, 2000 and September 28, 2000, respectively. The excess of cost over the fair value of the net tangible assets acquired from these transactions is


recorded as goodwill, other intangible assets and deferred stock compensation, which will be amortized by charges to operations. These transactions resulted in aggregate goodwill and other intangible assets of approximately $5.1 billion, as well as deferred stock compensation of $63 million. Our annual amortization of goodwill and other intangible assets is estimated to be approximately $1.3 billion per year and our amortization of deferred stock compensation will be as much as $40 million per year, which will have a significant negative impact on our operating results by increasing our losses, and could cause our stock price to decline.

We are required under generally accepted accounting principles to review our intangible assets for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. We have experienced a decline in our stock price and market capitalization during the first quarter of 2001. In addition, our industry has begun to experience slower growth rates. If such factors continue, we are required to perform an impairment review of our goodwill and other intangible assets, which approximate $3.8 billion at March 31, 2001. This review could result in a significant charge to earnings in the period any impairment is determined.

We are at risk of securities class action litigation due to the volatility of our stock price

In the past, securities class action litigation has often been brought against companies following periods of volatility in the market price of their securities. We may in the future be the target of similar litigation. Securities litigation could result in substantial costs and divert management`s attention and resources, which could seriously harm its business.

Our gross margin may decline

Our gross margin may decline in the future due to several factors. These factors include a shift in emphasis from sales of higher margin, lower volume products to sales of lower margin, higher volume products and our ability to control the mix of sales between these products. Additionally, our ability to maintain current price levels will be affected by competition for market share in international markets and lower selling prices on higher volume customer purchases. Gross margin will also likely fluctuate depending on our ability to introduce new products, competitive product enhancements and upgrades and our ability to control inventory costs. If we do not introduce new products with a higher margin, and are required to sell current products at a higher discount to remain competitive, our gross margin will decline.

Our operating results will suffer if we fail to commercialize new product lines

The SMS and SmartEdge families of products, along with their associated management software are the only products that we currently sell. We continue the development of our Service Management technology and intend to introduce new products utilizing it in the future. We cannot be certain that the SMS, SmartEdge or Service Management products or any future products will achieve widespread market acceptance. Our inability to timely and successfully introduce new products and enhancements, or the failure of these new products or enhancements to achieve market acceptance, could materially adversely affect our operating results, financial condition or business prospects.

There are a limited number of potential customers for our products

The products that we have developed or may develop and introduce in the future are marketed primarily to large customers. There are only a limited number of large existing and potential customers and this number is not expected to increase significantly and may decrease in the future. Our inability to develop and maintain relationships with these large customers could materially adversely affect our operating results and financial condition.

If our products do not anticipate and meet specific customer requirements and demands, our sales and operating results would be adversely affected

Many of our customers require product features and capabilities that our products may not have. The requirement that we add features to our products in order to achieve a sale may result in a longer sales cycle, increased research and development expenses and reduced margins on our products. To achieve market acceptance for our products, we must effectively and timely anticipate and adapt to customer requirements and offer products and services that meet customer demands. There can be no assurance that we will be able to provide a product that will satisfy new customer demands, or that the standards we chose to develop will position our products to compete with others on the market. Our failure to develop products or offer services that satisfy customer requirements would materially adversely affect our sales, operating results, financial condition and business prospects because customers will not place orders with us.


We intend to continue to invest in product and technology development. The development of new or enhanced products is a complex and uncertain process that requires the accurate anticipation of technological and market trends. We may experience design, manufacturing, marketing and other difficulties that could delay or prevent the development, introduction or marketing of new products and enhancements. The introduction of new or enhanced products also requires that we manage the transition from older products in order to minimize disruption in customer ordering patterns, to ensure that adequate supplies of new products can be delivered to meet anticipated customer demand, and to limit the creation of excess inventory that may impact our financial results. Our inability to effectively manage this transition would materially adversely affect our sales and the acceptance of our products in the marketplace.

Our failure to meet the demands of current and future broadband access markets would impair our operating results and business prospects by reducing sales

To date, we have derived substantially all of our revenues from sales of products used for broadband access in the digital subscriber line market or optical networking products for use in metropolitan optical networks. We intend to invest resources to increase our penetration of these markets and enter other markets, including the market for routed services. We may be unable to simultaneously or effectively address evolving demands in all of these markets, and customers in these markets may choose to implement competing technologies or products. In addition, if our competitors gain market acceptance in these markets first, it will be difficult, if not impossible, for us to gain subsequent market acceptance in these markets. If we are unable to achieve acceptance of our products in these markets, our ability to generate revenues will be limited, and our operating results, financial condition and business prospects would be materially adversely affected because customers will not place orders with us.

Any failure to remain competitive in our industry would impair our operating results and business prospects by reducing our ability to attract customers

We may be unable to compete successfully with current or future competitors. Currently, competition in our market is intense. The broadband access markets we are targeting are new and rapidly evolving and we expect these markets to be highly competitive in the future. In addition, we expect new competitors to emerge in the broadband access market as that market evolves due to technological innovation and regulatory changes. We face actual and potential competition from public and private companies providing various kinds of equipment that allows our customers to provide networking services to their customers. For instance, Cisco Systems, Inc., the leading provider of routers, also offers products that compete directly with our products, and provides a comprehensive range of other access systems. In addition, new "start-up" companies continue to announce their plans to develop "next generation" products that would compete directly with our products.

We expect companies that offer access concentrators, which are devices used to gather together high-speed Internet users, and routers to incorporate some subscriber management functionality into their products. These companies include Cisco Systems, Inc., Nortel Networks Corp. and Lucent Technologies Inc. In addition, there are several other companies that provide subscriber management features in access concentrators or routing platforms.

Many of our principal competitors in the optical networking market, including Alcatel Alsthom S.A., Cisco Systems, Inc., Fujitsu Ltd., Lucent Technologies Inc., Nortel Networks Corp., Siemens Aktiengesellschaft through its Unisphere division and some companies that may compete with us in the future, are large public companies that have longer operating histories and significantly greater financial, technical, marketing and other resources than we have. As a result, these competitors are able to devote greater resources to the development, promotion, sale and support of their products. In addition, our competitors that have large market capitalizations or cash reserves are much better positioned than we are to acquire other companies, including our competitors, and thereby acquire new technologies or products that may displace our product lines. Any of these acquisitions could give the acquiring competitor a strategic advantage that may disrupt our marketing and sales efforts.

Many of our competitors have significantly more established customer support and professional services organizations than we do. In addition, many of our competitors have much greater name recognition and have a more extensive customer base, broader customer relationships and broader product offerings than we have. These companies can leverage their customer bases and broader product offerings and adopt aggressive pricing policies to gain market share. We have encountered, and expect to continue to encounter, potential customers that, due to existing relationships with our competitors, are committed to the product offerings of these competitors. As a result, these potential customers may not consider purchasing our products. We expect to face competition in the following areas:

o product pricing; o breadth of product lines;


o sales and distribution capabilities;

o product features and enhancements, including product performance, reliability, size, compatibility and
scalability;
o product ease of deployment;
o conformance to industry standards; and
o technical support and service.

We expect that competitive pressures may result in price reductions, reduced margins and loss of market share, which would materially adversely affect our business, results of operations and financial condition.
Interruptions affecting our contract manufacturers or suppliers could disrupt production, compromise our product quality and adversely affect our sales

We currently use a limited number of third party manufacturers to assemble, test and ship our products. We may not be able to effectively manage our relationship with these manufacturers and such manufacturers may not meet our future requirements for timely delivery. Any interruption in the operations of our contract manufacturers would adversely affect our ability to meet our scheduled product deliveries to our customers. This could cause the loss of existing or potential customers and could materially adversely affect our sales and operating results.

In addition, the products that these manufacturers build for us may be insufficient in quality or in quantity to meet our needs or the needs of our customers. These manufacturers may not meet the technological or delivery requirements of our current products or any future products that we may develop and introduce. The inability of our contract manufacturers in the future to provide us with adequate supplies of high-quality products, or the loss of our contract manufacturers in the future, would cause a delay in our ability to fulfill customer orders while another of our third-party manufacturers begins production and would have a material adverse effect on our sales and operating results.

We currently purchase several key components used in our products from single or limited sources of supply. These manufacturers include Altera Corp., Agere Systems, Inc., APW Electronic Solutions, Brooktree Corp., Foresight Imaging, LLC, Intel Corp., JDS Uniphase Corp., Level One Communications, Inc., Powerspec, Siemens Aktiengesellschaft and Ziatech Corp. In addition, we rely on Arrow Electronics Corp., for component distribution, and LSI Logic Corp. as our foundry for a number of our application specific integrated circuits, or ASICs, and IBM Microelectronics as a foundry for other ASICs. We have no guaranteed supply arrangement with these suppliers, and we, or our manufacturers, may fail to obtain these supplies in a timely manner in the future. Financial or other difficulties faced by these suppliers or significant changes in demand for these components could limit the availability to us of these components. Any interruption or delay in the supply of any of these components, or the inability to obtain these components from alternate sources at acceptable prices and within a reasonable amount of time, would adversely affect our ability to meet scheduled product deliveries to our customers and would materially adversely affect our sales and business prospects. In addition, locating and contracting with additional qualified suppliers is time-consuming and expensive.

Interruptions in delivery of power could disrupt normal business operations and adversely affect our delivery schedules

Our corporate headquarters, a portion of our research and development activities, other business operations and a certain number of our suppliers and manufacturers are located in California. California has recently experienced ongoing power shortages, which have resulted in "rolling blackouts." These blackouts could cause disruptions to our operations and the operations of our suppliers, manufacturers and customers. Any significant or extended power outages could disrupt our business operations. Unexpected power disruptions could result in loss of data and interruption of development efforts. Extended power outages would adversely affect our ability to meet scheduled product deliveries to our customers and could materially adversely affect our sales and operating results.

Additionally, and as a result of the continuing shortage of power in California, our costs of power in California may rise significantly, which may increase our operating expenses and those of our customers.

If we fail to match production with product demand, we may need to incur additional costs to meet such demand

We currently use a rolling forecast based on anticipated product orders, product order history and backlog to determine our materials requirements. Lead times for the materials and components that we order vary significantly and depend on numerous factors, including the specific supplier, contract terms and demand for a component at a given time. If actual orders do not match our


forecasts, or if any components become obsolete between order and delivery time, we may have excess or inadequate inventory of materials and components. Excess inventory could materially adversely affect our operating results due to increased storage or obsolescence costs. In order to meet our inventory needs, we may incur expedite fees charged by our suppliers, which could materially adversely affect our product margins.

If we fail to attract or retain employees or properly manage our growth, we may not be able to timely develop, sell or support our products

We have expanded our operations rapidly since our inception. The number of our employees increased from inception in August, 1996 to approximately 1,000 on April 30, 2001.

Our future performance depends on our continuing ability to attract and retain highly qualified technical and managerial personnel. Our ability to continue to attract and retain highly skilled personnel is a critical factor in determining whether we will be successful in the future. Competition for highly skilled personnel is intense, especially in the San Francisco Bay Area. The loss of the services of key personnel or the inability to continue to attract, assimilate or retain qualified personnel could delay product development cycles or otherwise materially harm our business, financial condition and operating results.

If we become subject to employment related claims, we could incur substantial costs in defending against these claims

Companies in our industry whose employees accept positions with competitors frequently claim that their competitors have engaged in unfair hiring practices. We have received in the past, and may receive in the future, claims of this kind as we seek to hire qualified personnel and those claims may result in material litigation. We could incur substantial costs in defending ourselves or our employees against such claims, regardless of their merits. In addition, defending ourselves from such claims could divert the attention of our management away from our operations.

Our business may suffer slower or less growth due to further government regulation of the communications industry

The jurisdiction of the Federal Communications Commission, or FCC, extends to the communications industry, to our customers and to the products and services that our customers sell. Future FCC regulations, or regulations established by other regulatory bodies, may slow or end the growth of the broadband access services industry. Regulation of our customers may materially harm our business and financial condition. For example, FCC regulatory policies that affect the availability of data and Internet services may impede our customers` penetration into broadband access markets. In addition, international regulatory bodies are beginning to adopt standards for the communications industry. The delays that these governmental processes entail may cause order cancellations or postponements of product purchases by our customers, which would materially harm our business, results of operations and financial condition.

Our expansion to international markets will involve new risks

For the three months ended March 31, 2001 we derived 25% of our revenues from sales to customers outside the United States. For the years ended December 31, 1998, 1999 and 2000, we derived approximately 15%, 7%, and 29%, respectively, of our revenues from sales to customers outside the United States. Our ability to achieve future success will depend in part on the expansion of our international sales and operations. Our international presence exposes us to typical foreign market risks not faced by wholly-domestic companies, including, among others, foreign currency fluctuations, language and cultural barriers, unexpected regulatory requirements and protectionist laws, and political, legal and economic instability in foreign markets. Specifically, we have identified the following risks:

o expenses associated with customizing products for foreign countries;

o dependence on local vendors;
o longer sales cycles;
o longer accounts receivable cycles;
o difficulties in managing operations across disparate geographic areas; and
o reduced or limited protection of our intellectual property rights in some countries.

In addition, if we grow internationally, we will need to expand our worldwide operations and enhance our communications infrastructure. If we fail to implement and improve these systems, our ability to accurately forecast sales demand, manage our supply chain and record and report financial and management information would be adversely affected. This could materially adversely affect our revenues and operating results.

Undetected software or hardware errors could have a material adverse effect on our operating results

Networking products frequently contain undetected software or hardware errors when first introduced or as new versions are released. We have experienced errors in the past in connection with new products. We expect that errors will be found from time to time in new or enhanced products after we begin commercial shipments. These problems may cause us to incur significant warranty and repair costs, divert the attention of our engineering personnel from our product development efforts and cause significant customer relations problems. The occurrence of these problems could result in the delay or loss of market acceptance of our products.

Our customers use our products to provide broadband access to their customers. Defects, integration issues or other performance problems in our products could result in financial or other damages to our customers or could damage market acceptance for our products. Our customers could seek damages for losses from us, which, if they were successful, could have a material adverse effect on our operating results. A product liability claim brought against us, even if unsuccessful, would likely be time-consuming and costly.

If we have insufficient proprietary technology rights or if we fail to protect those we have, our business would be materially impaired

We rely on a combination of patent, copyright, trademark and trade secret laws, employee and third-party nondisclosure agreements and licensing agreements to protect our intellectual property rights. These legal protections afford only limited protection for our technology. We have filed 30 U.S. patent applications and two Canadian patent applications. There can be no assurance that these applications will be approved, that any issued patents will protect our intellectual property or that third parties will not challenge any issued patents. Furthermore, other parties may independently develop similar or competing technology, design around any patents that may be issued to us, otherwise gain access to our trade secrets or intellectual property, or disclose our intellectual property or trade secrets. Although we attempt to protect our intellectual property rights, we may be unable to prevent the misappropriation of our intellectual property, particularly in foreign countries where the laws may not protect our proprietary rights as fully as in the United States.

Others may allege that our products infringe upon their proprietary rights. Any parties asserting that our products infringe upon their proprietary rights would force us to defend ourselves or our customers, manufacturers or suppliers against alleged infringement of intellectual property rights. Many patents have been issued in the United States and throughout the world relating to many aspects of networking technology. We could incur substantial costs to prosecute or defend this litigation. In addition, intellectual property litigation could force us to do one or more of the following:

o cease selling, incorporating or using products or services that incorporate the challenged intellectual

property;
o obtain from the holder of the infringed intellectual property right a license to sell or use the relevant
technology, which license may not be available on acceptable terms, if at all; or
o redesign those products or services that incorporate the disputed technology.

In the event of a successful claim of infringement against us and our failure or inability to develop non-infringing technology or license the infringed technology on acceptable terms and on a timely basis, our business would be materially harmed due to lost or delayed sales or additional development or licensing expenses. We may be subject to these claims in the future.
We may in the future initiate claims or litigation against third parties for infringement of our proprietary rights in order to determine the scope and validity of our proprietary rights or the proprietary rights of competitors. These claims could result in costly litigation and the diversion of our technical and management personnel. As a result, our business could be materially adversely affected.

If we fail to obtain additional capital at the times, in the amounts and upon the terms required, our business could suffer

The industry is evolving quickly and new products are always required in order to maintain and grow our market share and to meet our customers` technology needs in providing cheaper, faster, more reliable and sophisticated services to their subscribers. The research, development and marketing of such new products and the expansion of our operations and reseller channels will require a significant commitment of resources.

Furthermore, if the market for broadband access develops at a slower pace than anticipated or if we fail to establish significant market share and achieve a meaningful level of revenue, we may continue to incur significant operating losses and utilize significant amounts of capital. While we believe that our existing capital resources are adequate to meet our current needs, we may require additional capital in the future. We cannot precisely determine the timing and amount of such capital requirements and will depend on several factors, including our acquisitions and sales of our products and products under development. Such additional capital may not be available to us at all, or, if available, may be available only on unfavorable terms.

We have insufficient cash flow to meet our debt service obligations

We have substantial amounts of outstanding indebtedness, primarily due to our convertible notes. We also may obtain additional long-term debt and working capital lines of credit. As a result of this indebtedness, our principal and interest payment obligations will increase substantially. Currently, our earnings are insufficient to cover our anticipated debt service obligations. There is the possibility that we may be unable to generate cash sufficient to pay the principal of, interest on and other amounts due in respect of our indebtedness when due.

Our substantial leverage could have significant negative consequences, including:

o increasing our vulnerability to general adverse economic and industry conditions;

o limiting our ability to obtain additional financing;
o increasing our cost to obtain additional financing;
o requiring the dedication of a substantial portion of our cash from operations to service our indebtedness,
thereby reducing the amount of our cash available for other purposes, including capital expenditures;
o limiting our flexibility in planning for, or reacting to, changes in our business and the industry in which we
compete; and
o placing us at a possible competitive disadvantage vis-a-vis less leveraged competitors and competitors that
have better access to capital resources.

We may be unable to repurchase our convertible notes which could seriously harm our financial condition
On April 1, 2007, the entire outstanding principal in the aggregate amount of $500 million of our outstanding 5% convertible subordinated notes issued in April 2000 will become due and payable. In addition, if a change in control occurs, each holder of the convertible notes may require us to repurchase all or a portion of that holder`s convertible notes as provided in the indenture for the convertible notes. At maturity or if a change in control occurs, we may not have sufficient funds or may be unable to arrange for additional financing to pay the principal amount or repurchase price due. Under the terms of the indenture for the convertible notes, we may elect, if we meet certain conditions, to pay the repurchase price with shares of common stock. Our borrowing arrangements or agreements relating to senior debt to which we become a party may contain restrictions on, or prohibitions against, our repurchases of the convertible notes. If the maturity date or change in control occurs at a time when our other arrangements prohibit us from repurchasing the convertible notes, we could try to obtain the consent of the lenders under those arrangements to purchase the convertible notes, or we could attempt to refinance these borrowings that contain the restrictions. If we do not obtain the necessary consents or refinance these borrowings, we will be unable to repurchase the convertible notes. In that case, our failure to repurchase any tendered convertible notes or convertible notes due upon maturity would constitute an event of default under the indenture for the convertible notes. Any such default, in turn, may cause a default under the terms of our senior debt. As a result, in those circumstances, we could not repurchase any of the convertible notes until we pay the senior debt in full, further limiting our ability to obtain additional financing.

Provisions of our charter documents may have anti-takeover effects that could prevent a change in our control

We are subject to the provisions of Section 203 of the Delaware General Corporation Law prohibiting, under some circumstances, publicly-held Delaware corporations from engaging in business combinations with some stockholders for a specified period of time


without the approval of the holders of substantially all of its outstanding voting stock. Such provisions could delay or impede the removal of incumbent directors and could make more difficult a merger, tender offer or proxy contest involving us, even if such events could be beneficial, in the short term, to the interests of the stockholders. In addition, such provisions could limit the price that some investors might be willing to pay in the future for shares of our common stock. Our certificate of incorporation and bylaws contain provisions relating to the limitations of liability and indemnification of our directors and officers and providing that our stockholders can take action only at a duly called annual or special meeting of stockholders. These provisions also may have the effect of deterring hostile takeovers or delaying changes in control or management of us.




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Recent filings: May 15, 2000 (Qtrly Rpt) | Nov 13, 2000 (Qtrly Rpt) | Nov 14, 2000 (form8-K) | Jan 18, 2001 (form8-K) | Jan 29, 2001 (form8-K) | Apr 02, 2001 (form8-K) | Apr 13, 2001 (form8-K) | May 15, 2001 (Qtrly Rpt)
More filings for RBAK available from EDGAR Online | Get a Free Trial to EDGAR Online Premium
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Tja, die unverblümte Wahrheit...
Erstaunlich wie offen man über seine Probleme spricht.
und was ziehen wir daraus als Fazit ? Verkaufen ? hmmm werde es mir jedenfalls überlegen.
wie ist eure meinung ?
Auch ein interessanter Bericht:

http://sites.stockpoint.com/ppiquotes/newspaper.asp?Mode=QUOTE&Story=20010516136b1229.xml&CompanyName=Redback+Networks+Inc.&Symbol=RBAK
Schon seltsam, kaum sind die bad news raus steigt Redback wieder. An für sich auch eine Topfirma.
Logisch dass nach solchen Nachrichten der Wert mit 14% abgestraft wird...


Suzhou Cable TV Selects Redback SMS Platform for Broadband Service Deployment

SUZHOU, China--(BUSINESS WIRE)--Aug. 20, 2001--Redback Networks Inc. (NASDAQ: RBAK), a leading provider of solutions for next-generation metro broadband and optical networks, announced today that Suzhou Cable TV of China, will deploy a full array of platforms from the SMS(TM) product family, Redback`s industry-leading family of subscriber management systems, to enable its broadband Internet service roll out. The SMS platform will leverage Suzhou CATV`s existing provisioning, accounting and management control systems to manage thousands of broadband subscribers, enabling the company to speed up time-to-market for new revenue-generating connectivity services.

Suzhou will primarily target residential and small office/home office (SOHO) users in the Suzhou Economic Development Zone (EDZ) with the initial roll out, and will work toward migrating major corporate customers, such as the Bank of China and the Transportation Department, from their current ATM networks to the new service. Joint venture companies and multinationals in the Suzhou EDZ are also expected to build corporate intranets on Suzhou CATV`s network with virtual private network (VPN) technology.

"Redback underwent an extensive testing process before we selected them for this project", said Mr. Shi-Jie Deng, CTO of the Suzhou CATV. "The company`s distinguished roster of customers worldwide was also a deciding factor."

"Suzhou and Jiangsu province are a portent of China`s IT future," said Joshua Chao, vice president for Asia Pacific Operations at Redback. "Redback is glad to be working with Suzhou to make broadband Internet access ubiquitous in the region."

According to official estimates, the number of Internet users in Jiangsu grew to 2.2 million by April 2001, making it the second highest Internet subscriber base in China after Beijing. Suzhou is situated in Jiangsu province, one of the key government development zones for information technology in China, with revenues of 2.3 billion Vuan (US$277 million) last year from its software industry alone. Joint ventures with foreign multinationals have been a major force in the development of Jiangsu`s information technology industry. Since 1994, the Jiangsu provincial government has strived to attract foreign high-tech investors to the Suzhou Economic Development Zone by introducing various incentives, such as fast-tracking company incorporation, to one week instead of months, tax exemption for the first two years, and long-term tax breaks.

Managed by the Suzhou Broadcast and Television Bureau, Suzhou Cable TV Network transmits 24 domestic TV channels and 15 international channels including CNN, HBO, NGC, DW of Germany, TV-5 of France, Japan`s NHK, Korean Broadcasting Station, Singapore Television, and Hong Kong Phoenix Television. Since 2000, 100% of Suzhou`s surrounding villages and towns have been connected into Suzhou CATV`s network. Currently cable TV subscribers number over 700,000. More information is available at http://scnnews.2500sz.com.

About Redback Networks Inc.


Redback Networks enables carriers and service providers to build profitable next-generation metro broadband and optical networks. The Company offers a strong product portfolio that includes industry-leading subscriber management and optical platforms, as well as a comprehensive set of network provisioning and management software. These solutions deliver superior performance and scalability, reduce operational costs, and expedite the management and deployment of new services within metro networks.

Founded in 1996 and headquartered in San Jose, Calif., with sales and technical support centers located worldwide, Redback Networks maintains a growing and global customer base of more than 350 carriers and service providers, including major local exchange carriers (LEC), inter-exchange carriers (IXCs) and service providers. For more information, please visit http://www.redback.com.

Redback is a U.S. Registered Trademark; SMS is a Trademarks of Redback Networks Inc. Other trademarks, service marks, and trade names belong to their respective owners.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, including statements regarding Redback Networks` expectations, beliefs, intentions or strategies regarding the future. Forward-looking statements include statements regarding product deployments and network configurations. All forward-looking statements included in this document are based upon information available to Redback Networks as of the date hereof, and Redback Networks assumes no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. These and other risks relating to Redback Networks` business are set forth in the documents filed by Redback Networks with the Securities and Exchange Commission, specifically the most recent report on Form 10-Q, and the other reports filed from time to time with the Securities and Exchange Commission.

CONTACT: Redback Networks
Jessica Kim, +82-11-695-5570
jeskim@redback.com
Anne Smith, 408/571-5044
asmith@redback.com
Wells Fargo upgrades optical networkers (CSCO, RBAK, FDRY, SCMR, $NWX) By Tomi Kilgore
Analyst Chet White at Wells Fargo Van Kasper upgraded the shares of several networking companies, based on his belief that the Internet-protocol optical communications sector "is in the midst of reaching a key inflection point of business levels and investor sentiment." He upgraded Cisco Systems (CSCO) , Foundry Networks (FDRY) and Redback Networks (RBAK) to "strong buy" from "buy," and Sycamore Networks (SCMR) to "buy" from "market perform." White believes the market has reached an "unsustainable trough" in business, driving the stocks to trough, and in some cases, cash valuations. "We believe that this price weakness, combined with more conservative business forecasts, increases the probability for these companies to begin to meet and beat expectations," he said in a note to clients. He recommends investors take advantage of this price weakness to buy shares of leading IP optical companies particulary Cisco, Foundry, and Redback. Cisco is now trading up $1.18, or 7 percent, to $17.94 (see 9:36 item). Foundry is gaining $1.03 to $13.83, Redback is adding 26 cents to $4.29 and Sycamore is tacking on 43 cents to $5.71. The Amex Networking Index ($NWX) is climbing 4.5 percent. Earlier this week, the NWX had fallen to levels not seen since December 1998.
Fast 1 Monat kein Posting mehr.
Ist rbak tot oder gibt es noch einen Grund diese Aktie zu kaufen?
Danke für Statements.
Redback Networks Expects Lower Third Quarter 2001 Results
SAN JOSE, Calif.--(BUSINESS WIRE)--Sept. 25, 2001--Redback Networks Inc. (Nasdaq:RBAK - news) today announced that it expects revenue in the current fiscal quarter ending September 30, 2001 will be approximately $35 to $40 million. These projections are preliminary and subject to change as final orders are processed through the end of the quarter.

``With the uncertainty surrounding the events of September 11, the Company saw several of its September sales orders and revenue shipments rescheduled or cancelled. The economic effects of these events are aggravating an already weak telecommunications equipment market, causing the timing of a recovery to be difficult to predict,`` said Kevin DeNuccio, president and chief executive officer at Redback. ``As a result, the Company will be taking near term actions to significantly reduce its cost structure. These proposed actions will likely result in charges for excess inventory and commitments, goodwill and other asset impairment, and restructuring.``

Redback`s fiscal third quarter 2001 earnings conference is scheduled for October 10th at 2:00 p.m. (PT). The Company will review the quarter, as well as it outlook for the remainder of the year, at that time. Information on these calls can also be found on Redback Network`s website at www.redback.com under Investor Center.

About Redback Networks Inc.

Redback Networks enables carriers and service providers to build profitable next generation metro broadband and optical networks. The Company offers a strong product portfolio that includes industry-leading subscriber management and optical platforms, as well as a comprehensive set of network provisioning and management software. These solutions deliver superior performance and scalability, reduce operational costs, and expedite the management and deployment of new services within metro networks.

Founded in 1996 and headquartered in San Jose, Calif., with sales and technical support centers located worldwide, Redback Networks maintains a growing and global customer base of more than 350 carriers and service providers, including major local exchange carriers (LEC), inter-exchange carriers (IXCs) and service providers. For more information, please visit http://www.redback.com

Note to Editors: Redback is a U.S. Registered Trademark; Subscriber Management System and SmartEdge are Trademarks of Redback Networks Inc. Other trademarks, service marks, and trade names belong to their respective owners.


Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995

The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, including statements regarding Redback Networks` expectations, beliefs, intentions or strategies regarding the future. Forward-looking statements include statements regarding future sales, product deployment and network configurations. All forward-looking statements included in this document are based upon information available to Redback Networks as of the date hereof, and Redback Networks assumes no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. These and other risks relating to Redback Networks` business are set forth in the documents filed by Redback Networks with the Securities and Exchange Commission, specifically the most recent report on Form 10-Q, and the other reports filed from time to time with the Securities and Exchange Commission.


--------------------------------------------------------------------------------
Contact:
Redback Networks
Anne Smith, 408/571-5044 (Media)
asmith@redback.com
Dennis P. Wolf, 408/571- 5155 (Financial)
dwolf@redback.com


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