Occam in the News

Occam Reports Q4
Light Reading
February 21, 2008

SANTA BARBARA, Calif. -- Occam Networks® Inc. (NASDAQ:OCNW), a leading broadband access network supplier, today announced its financial results for the fourth quarter and year ended December 31, 2007.

Revenues totaled $21.3 million for the fourth quarter, which ended December 31, 2007. Fourth quarter 2007 revenues represented a decrease of 4% as compared to the fourth quarter of 2006 and an increase of 36% sequentially over the third quarter of 2007. Annual revenue for 2007 was $75.1 million, representing a 10% increase over annual revenue for 2006.

Net loss attributable to common stockholders for the fourth quarter of 2007, calculated in accordance with generally accepted accounting principles ("GAAP"), was $4.6 million or $0.23 per share compared with net income attributable to common stockholders of $1.7 million or $0.09 per diluted share for the fourth quarter of 2006 and net loss attributable to common stockholders of $4.9 million or $0.25 per share for the third quarter of 2007. Annual net losses attributable to common stockholders for 2007 and 2006 were $10.4 million and $2.2 million, respectively. The results for 2007 included a $2.2 million in-process research and development charge related to the Terawave asset purchase, and 2006 included a beneficial conversion feature charge related to the issuance of preferred stock. The results for 2007 and 2006 also include non-cash, employee stock-based compensation expenses. Non-GAAP net loss attributable to common stockholders before the in-process research and development charge and stock-based compensation was $1.9 million for the fourth quarter of 2007, compared to non-GAAP net income attributable to common stockholders of $2.4 million for the fourth quarter of 2006 and a non-GAAP net loss attributable to common stockholders of $4.4 million for the third quarter of 2007. Non-GAAP net loss attributable to common stockholders before the in-process research and development charge and stock-based compensation for 2007 was $6.1 million. Non-GAAP net income attributable to common stockholders before beneficial conversion feature charges and stock-based compensation for 2006 was $3.1 million. A reconciliation of Occam’s non-GAAP to GAAP financial results, together with a statement of how management uses the non-GAAP financial information, is set forth below.

The company capped the fiscal year by achieving double-digit customer growth for a thirteenth straight quarter. Among the new customer additions was GTA TeleGuam, Occam’s first Asia-Pacific customer, which awarded the company an initial project to upgrade service on more than 10,000 access lines. Other significant milestones included:

  • Surpassing the 270 customer mark, with Occam’s customer base growing more than 30% in 2007.
  • Announcement of Occam’s first GPON products, featuring the Occam Packet Engine which enable full rate-line bandwidth for every GPON port simultaneously and which the company currently expects to be released in the first half of 2008.
  • First customer shipments of the BLC 6450, a 10Gigabit Ethernet Aggregation blade that customers are using to expand the bandwidth available for remote cabinets and central offices.
  • Acquisition of certain assets of Terawave, which provided the company important capabilities integral to the development of its GPON product suite.
  • Earning the Product of the Year Award for our GPON OLT, the BLC 6322, from Internet Telephony Magazine.

"Occam’s continuing focus on customer development and an expansion of service options to telcos were the highlights for 2007,” said Bob Howard-Anderson, Occam’s president and chief executive officer. “The major developments in our GPON technology demonstrate the fact that Occam is placing a long-term priority on providing a broad array of access solutions for telcos and their customers, creating more services and features for subscribers and more revenue steams for service providers.”