logo-loader

Sycamore swings to Q4 loss on sharp drop in revenue, still beats Street

Published: 16:07 07 Sep 2011 BST

no_picture_pai

Sycamore Networks (NASDAQ:SCMR) beat Street estimates Wednesday despite swinging to a loss for the three months ending July 31, as revenues sank.

The provider of bandwidth management services, which has Verizon and Sprint as clients, posted a fourth quarter net loss of $3.62 million, or $0.13 loss per share, compared to a $0.52 million gain, or $0.02 gain per share, in the year-ago period.

Adjusted for certain one-time items, net loss was $2.55 million, or $0.09 loss per share.

Revenues fell to $12.96 million, a staggering 41.7% plunge from $22.23 million a year ago.

Still, analysts had estimated a net loss of $0.12 on a per share basis, on $12.0 million in revenues.

"Sycamore's fourth quarter results continue to reflect the ongoing state of the bandwidth management market," explains president and CEO, Daniel E. Smith.

"Our Intelligent Bandwidth Management solutions play an important role in carrier networks around the world and they continue to contribute positively to Sycamore's overall operating results."

Smith also mentioned that the company is receiving positive data from its IQstream trials, but didn't elaborate.

The IQstream product reduces network congestion during peak usage times and during flash events, alleviating network capacity constraints for service providers.

"In today's environment where capital dollars are scarce and demand for mobile data continues to grow, we believe our unique approach to mobile broadband optimization can help operators cost-effectively manage capacity constraints in the backhaul," he concluded.

Sycamore shares on the Nasdaq exchange rose 3.45% as at 9:48 am EDT, to $17.39 per share.

Oriole Resources outlines 2023 achievements and future exploration plans

Oriole Resources PLC (AIM:ORR) CEO Tim Livesey and chief financial officer Bob Smeeton join Proactive's Stephen Gunnion with details of the company's 2023 financial and operational performance. Livesey highlighted successful exploration programs in Cameroon, at the Bibemi and Mbe projects,...

2 hours, 20 minutes ago