Avanex Corporation (Nasdaq: AVNX), a provider of photonic processors that accelerate the deployment of the next-generation optical networks, announced a revised outlook for its fiscal third quarter ended March 30, 2001.

The Company announced that it expects sales in the third quarter of fiscal year 2001 to be approximately $30 million and pro forma basic and diluted loss per share to be 3 cents, excluding a pre-tax provision for excess inventory, expected to be $22 million. These anticipated results are lower than the financial guidance given on Feb. 27, 2001.

The cost-containment plan includes a reduction in workforce, primarily in manufacturing and administrative activities at the Company's Fremont facility, plus a cutback in discretionary expenses, including general administration. In addition, the Company said that as a result of its outsourcing initiatives, it now would sub-lease its unoccupied buildings in Fremont.

About Avanex:

Avanex designs, manufactures and markets photonic processors for the communications industry. For more information, visit www.avanex.com.