Sunnyvale, Calif., August 6, 2001 -- CacheFlow® Inc. (Nasdaq:CFLO), the
leading provider of content-smart networking solutions, today released
preliminary financial results for the first quarter of fiscal 2002.
Although revenue was slightly lower than previous guidance, losses were
substantially less because of lower than planned costs of goods sold and
strict operating expense control. CacheFlow said its preliminary estimate
of total revenue for the first quarter ended July 31, 2001 would be
approximately $20 million, and expects a pro forma loss of approximately
$0.21 to $0.22 per share, exclusive of deferred stock compensation,
amortization of intangibles, asset impairment and other one-time charges.
The pro forma loss per share estimate is approximately thirty-three percent
better than guidance provided in May 2001.
Although revenue was below expectations the company saw better than expected
order flow toward the end of the quarter, especially in the U.S. market. To
accelerate its drive to profitability, the company also announced that it
would further reduce operating expenses, primarily through a workforce
reduction in the sales and general and administrative functions. Redundant
and overlapping activity in R&D that resulted from the acquisitions of
Springbank and Entera will also be eliminated. This will result in an
approximate 18% reduction in headcount from the 495 individuals employed at
the end of the company`s prior fiscal quarter ended April 30, 2001. In
connection with the workforce reduction, CacheFlow plans to incur a
restructuring charge primarily for severance and other employee-related
costs in its second quarter of fiscal 2002.
Brian NeSmith, President and CEO of CacheFlow said, "We are pleased with the
progress we made this quarter in expense control and positioning for future
growth, as well as our revenue level, especially in light of the trying
market conditions. The expense reductions we`re making will conserve cash
and allow us to invest more aggressively in product development. I`m
especially pleased with the order strength late in the quarter in the U.S.
markets indicating a pick-up in customer demand for proxy replacement and
streaming content distribution services."
Actual results for the quarter ended July 31, 2001 will be reported in the
company`s regular quarterly earnings release scheduled for August 16, 2001.
The company will host a conference call to discuss final first quarter
fiscal 2002 results on August 16, 2001 at 2:00 p.m. pacific time. The call
will be webcast live on the company`s website at www.cacheflow.com.
About CacheFlow Inc.
CacheFlow is focused on content-smart networking--a new layer of
infrastructure for intelligently accelerating, delivering, and managing
static, streaming, and dynamic content. CacheFlow`s market-leading
appliances and innovative content delivery technologies enable enterprises,
service providers and content delivery network providers to deliver the
right content to the right place at the right time. Based in Sunnyvale,
California, CacheFlow can be contacted via telephone at 408.220.2200, fax at
408.220.2250 or email at info@cacheflow.com.
CacheFlow Inc. Forward-Looking Statements
The statements contained in this press release that are not purely
historical are forward-looking statements, including statements regarding
preliminary first quarter fiscal 2002 financial results, and regarding the
Company`s future operating results as well as statements regarding
CacheFlow`s expectations, beliefs, intentions or strategies regarding the
future. All forward-looking statements included in this press release are
based upon information available to CacheFlow as of the date hereof, and
CacheFlow 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 CacheFlow`s business are set forth in
CacheFlow`s Form 10-K for the year ended April 30, 2001, and other reports
filed from time to time with the Securities and Exchange Commission.
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