Redback revenues rise, but in danger of delisting

Redback Networks reported revenues for the fourth quarter that were up from the low point of Q3, but announced it has received a delisting notice from the Nasdaq Stock Market.

For the quarter ending Dec. 31, Redback posted revenues of $27.6 million, up from $17.4 million in the third quarter. Loss per share, both pro forma and according to generally accepted accounting principals (GAAP), was 15 cents, in line with consensus analyst estimates.

For the year, the company posted revenues of $125.6 million down from $227.5 million in 2001. GAAP loss per share was $1.13.

“During our fourth quarter, Redback recovered from the trough levels we experienced during the third quarter,” said Kevin DeNuccio, Redback’s CEO.

According to DeNuccio, the company’s revenues increased largely due to a $12 million increase in sales of the subscriber management system product line, which accounted for 2/3 of Redback’s revenue during the quarter.

Geographically, North American sales grew by $7.6 million to $16.3 million, accounting for 59% of the company’s revenues.

On top of the solid numbers for Q4 Redback said expects its position to continue to improve in Q1, forecasting a 5% to 10% sequential revenue jump.

The good news coming from Redback, however, was tempered by the announcement that it has received a delisting notice from Nasdaq for failure to meet the minimum $1 trading level. The company said it will appeal the notice. If the appeal fails the company will apply for trading on the small-cap market.