C-COR.net shows Q4, FY losses; splits into three units
C-COR.net lost $6.23 million on net sales of $38.8 million in the fourth quarter and showed a $7.65 million net loss for the year. It also split itself into three separately located and run broadband units.
In Q4, C-COR.net showed a loss from operations of $8.82 million, or 20 cents a share, compared with $6.13 million, or a profit of 15 cents a share, a year ago. For the year, operations lost $16.85 million, compared with $16.09 million in 2000.
C-COR.net says the quarter's losses in operations include merger and restructuring charges, a $1.5 million charge for in-process R&D, and $1.3 million in amortization of intangibles and goodwill from its April purchase of MobileForce Technologies Inc. It also includes a $3.5 million charge for impairment of a long-term investment.
Fourth-quarter net sales fell dramatically from $80.08 million a year ago to $38.78 million. Net sales for 2001 also dropped to $223.3 million from $283.3 million in 2000.
The company expects net sales of $48 million to $50 million for its next quarter and a loss of 9 cents to 11 cents a share, including costs from its recent acquisition of ADC Telecommunications Inc.'s cable assets and C-COR.net's new enterprise resource planning system.
Separately, the company is realigning itself into three divisions — Broadband Communications, Broadband Management Solutions and Technical Services.
The Meriden, Conn.-based Broadband Communications Division, headed by John Caezza, will have facilities in the United States, Mexico, Austria and Argentina, and will research, develop, manage, produce, support and sell the company's fiber optic, digital video transport and RF equipment. The unit will include products from C-COR.net's purchase of ADC's cable assets.
The Pleasanton, Calif.-based Broadband Management Solutions Division, headed by Douglas Engerman, will have regional offices in Atlanta, Georgia and Pennsylvania. It will develop, integrate, manage, launch, support and sell the company's network management solutions.
Finally, the Lakewood, Colo.-based Technical Services Division, headed by Paul Janson, will keep offices in the Northeast, Midwest, Southeast and West, and will procure, manage and launch outsourced technical field services related to broadband.
Chair and CEO David Woodle noted the three divisions reflect the company's goal to divide its business base across three broadband segments.