Monday, May 7, 2007

Ditech Issues Preliminary Results, CEO to Step Down

Ditech Networks expects revenue for its fourth quarter fiscal 2007, ended April 30, 2007, to be approximately $19.2 million, and GAAP income per share is expected to be approximately $0.02.

"The revenue shortfall, from our projections at the beginning of the quarter, was due to extended negotiations with certain key prospects and customers, particularly in our international business," said Tim Montgomery, President and CEO of Ditech Networks. "We did however achieve a significant milestone this quarter with the shipment of orders to an additional major U.S. wireless carrier. This, along with a strong quarter from our largest customer, Verizon Wireless, produced a solidly profitable quarter."

Ditech Networks expects revenues in the first quarter of fiscal 2008 to be $21 - $23 million.

Separately, Tim Montgomery, Ditech's CEO, President and Chairman, announced his plans to retire after 10 years with the company. A search is underway for a replacement. Montgomery joined the company in 1997 as Senior Vice President of Sales and Marketing, a role in which he spearheaded the expansion of Ditech's North American echo cancellation business. He was promoted to CEO and President in 1998, and is credited with leading one of the most successful IPO's in Silicon Valley in 1999 when Ditech Communications went public.

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