Revenue for the first quarter ended March 31, 2001 was $17.4 million, a 14% increase over fourth quarter revenue of $15.3 million, and in line with the company’s previous guidance of $16 to $18 million. The pro forma net loss for the quarter ended March 31, 2001 was $4.9 million, or $0.15 per share, an improvement of $4.8 million from the previous quarter.
These pro forma results for the quarter ended March 31, 2001 exclude goodwill and other intangible asset amortization of $0.5 million. These pro forma results for the quarter ended December 31, 2000 also exclude goodwill and other intangible asset amortization of $22.6 million, a restructuring charge of $7.0 million and an impairment charge of $328.8 million related to the write-off of goodwill and other intangibles related to the Avesta acquisition.
I am pleased with the continued improvement in our quarterly results, as well as the progress we continue to make toward our stated goal of refocusing the company around service providers and their end-user enterprise customers, said Scott Stouffer, president and CEO of Visual Networks. Despite a challenging economic environment, demand continues from service providers and their enterprise customers for Visual Networks’ service management solutions because of their proven value in delivering network performance and in providing unique insights into end-users’ service experience.
Service providers, who either offer enhanced services around Visual Networks’ products or resell them to their enterprise customers, represented a significant portion of total revenue for the quarter. The company’s major service provider customers – AT&T, WorldCom and Sprint – each contributed more than 10% of revenue for the period.
In addition to continued demand for our flagship product, Visual UpTime(R), we also are seeing demand for our other service management offerings as many of our customers – both service providers and enterprise customers — deploy newer and higher-speed access and transport technologies, Stouffer added.
The company recently announced that Sprint, a Visual UpTime user since 1995, has added Visual IP InSight(TM) to its service management tool chest to manage and monitor its fast-expanding broadband, fixed-wireless network. As customers include newer technologies, increasing the complexity of their networks and business infrastructure, they continue to rely on Visual Networks as the proven provider of comprehensive and cutting-edge service management solutions, said Stouffer.
SOURCE: COMPANY PRESS RELEASE
