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Sycamore Q1 loss misses views, plans special dividend
By Matt Jarzemsky, Dow Jones Newswires
Wednesday 01 December 2010
Software compant to pay out $185 million in one-off dividend.

Sycamore Networks Inc.'s fiscal first-quarter loss narrowed on fewer charges than a year earlier, but core results fell more than expected.

The provider of bandwidth management software and networking products also said it will pay a one-time dividend of $6.50 a share later this month, joining a fast-increasing slate of corporations taking the same step ahead of a potential increase of federal income taxes on dividends. The payout would cost Sycamore about $185 million. It doesn't issue quarterly dividends.

The company had benefited from cost-cutting and wider margins of late, and its prior quarter resulted in the first profit in two and a half years. Recent interest has centered on Sycamore's IQStream product line, which helps mobile data carriers reduce congestion.

Click here to find out more!But the latest results "reflect the fluctuations associated with the project-oriented nature of our bandwidth management business," said President and Chief Executive Daniel E. Smith.

For the quarter ended Oct. 30, Sycamore reported a loss of $6.5 million, or 23 cents a share, compared with a year-earlier loss of $10.4 million, or 37 cents a share. Excluding prior-year write-downs and restructuring charges as well as stock-based compensation, the loss widened to 20 cents from 11 cents a share as revenue dropped 25% to $11.7 million.