<PAGE>
EXHIBIT 99.1
<TABLE>
<CAPTION>
REDBACK NETWORKS INC.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED
--------------------- ----------------------
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
2000 1999 2000 1999
----------- -------- ----------- ---------
<S> <C> <C> <C> <C>
NET REVENUES............................................ $ 48,728 $ 11,087 $ 82,891 $ 17,604
COST OF REVENUES........................................ 14,853 3,291 23,150 5,262
---------- -------- ---------- --------
GROSS MARGIN............................................ 33,875 7,796 59,741 12,342
---------- -------- ---------- --------
OPERATING EXPENSES:
Research and development............................. 23,783 4,133 35,922 7,238
Selling, general and administrative.................. 16,597 6,519 29,852 10,657
Amortization of intangible assets.................... 279,630 -- 350,234 --
In-process research and development.................. -- -- 15,300 --
Amortization of deferred stock compensation.......... 514 1,139 1,049 2,217
---------- -------- ---------- --------
Total operating expenses............................. 320,524 11,791 432,357 20,112
---------- -------- ---------- --------
LOSS FROM OPERATIONS.................................... (286,649) (3,995) (372,616) (7,770)
OTHER INCOME (EXPENSE), NET............................. (11) 258 719 232
---------- -------- ---------- --------
NET LOSS................................................ $ (286,660) $ (3,737) $ (371,897) $ (7,538)
========== ======== ========== ========
BASIC AND DILUTED NET LOSS PER SHARE.................... $ (2.41) $ (0.08) $ (3.58) $ (0.24)
========== ======== ========== ========
SHARES USED IN COMPUTING NET LOSS PER SHARE............. 118,730 45,052 103,957 30,892
========== ======== ========== ========
</TABLE>
NOTE: The above share and per share data reflect the Company's 2-for-1 stock
split effective April 3, 2000.
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<TABLE>
<CAPTION>
REDBACK NETWORKS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
JUNE 30, DECEMBER 31,
ASSETS 2000 1999
------------ -------------
<S> <C> <C>
CURRENT ASSETS:
Cash, cash equivalents and investments in marketable debt securities............ $ 491,910 $ 56,960
Accounts receivable, net........................................................ 36,897 15,429
Inventories..................................................................... 4,353 3,960
Other current assets............................................................ 11,015 1,374
----------- ------------
Total current assets.......................................................... 544,175 77,723
PROPERTY AND EQUIPMENT, NET........................................................ 33,550 10,150
OTHER LONG-TERM ASSETS, PRINCIPALLY GOODWILL....................................... 4,145,841 6,957
----------- ------------
Total assets ................................................................... $ 4,723,566 $ 94,830
=========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Debt, current................................................................... $ 2,342 $ 878
Accounts payable and accrued liabilities........................................ 56,284 17,102
Deferred revenue................................................................ 13,307 9,945
----------- ------------
Total current liabilities..................................................... 71,933 27,925
Convertible subordinated notes, capital lease obligations and other notes payable,
less current portion............................................................ 507,705 1,012
STOCKHOLDERS' EQUITY............................................................... 4,143,928 65,893
----------- ------------
Total liabilities and stockholders' equity...................................... $ 4,723,566 $ 94,830
=========== ============
</TABLE>
