Wednesday, February 8, 2006

Occam Networks Posts First Profitable Quarter

Occam Networks reported its first-ever profitable quarter. The company reported Q4 2005 revenue of $12.9 million, setting its sixth consecutive new revenue record. Fourth quarter 2005 revenues represented an increase of ninety-nine percent over the fourth quarter of 2004 and 21 percent sequentially over the third quarter of 2005. Annual revenue for 2005 was $39.2 million, more than doubling annual revenue for 2004. During the quarter gross margins also improved substantially as a result of supply chain improvements and product cost reductions. Margins also included a one-time benefit of $482,000 attributed to the reversal of an accrual for outstanding purchase commitments. Excluding this benefit, the company's operating income remained positive and net income was near breakeven.

Howard-Anderson continued, "We continue to see a broad and growing demand for IP- and Ethernet-based platforms from US and international telcos, and we don't see this trend changing. Much of the demand is being driven by the telcos' need to deliver the Triple Play services that will enable them to remain competitive. With the announcement of new satellite based IPTV video delivery services, which enable rural telcos to deliver multi-channel standard and high-definition television much more cost effectively, more telcos will be able to deliver IPTV video service. Our experience in building IP and Ethernet networks that deliver IPTV, VoIP, POTS and high speed internet puts us in an excellent position to capitalize on this
industry trend."

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