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Sycamore Networks swings to profit in Q4 over last year loss

2nd Sep 2010, 3:30 pm
Sycamore Networks swings to profit in Q4 over last year loss

Mobile bandwith management solutions provider Sycamore Networks (NASDAQ: SCMR) has reported profits of $0.5 million, or $0.02 per diluted share, for the fourth quarter of fiscal 2010, compared with a loss of $34.9 million, or $1.23 per share for the same period last year. For the full year, the company improved its net income, posting a loss of $14.8 million, versus a loss of $53.6 million in fiscal 2009.

On a non-GAAP basis, net income for the fourth quarter was $1.3 million, or $0.05 per diluted share, compared with non-GAAP net loss of $6.5 million, or $0.23 per share in the prior-year quarter.

Revenue for the fourth quarter also increased by 29% to $22.2 million, while revenue for the entire year increased only slightly to $68.6 million from $67.4 million in 2009.

"Sycamore achieved revenue growth, continued strong margin performance and was cash positive," said president and CEO Daniel E. Smith.

"These results, combined with our focus on effective cost management, enabled the company to achieve operating profitability, on a non-GAAP basis, in the quarter, while continuing to invest in IQstream, our recently announced mobile broadband optimization solution."

Sycamore Networks develops and markets intelligent bandwidth management solutions for fixed line and mobile network operators worldwide. We also develop and market a mobile broadband solution designed to help mobile operators reduce congestion in mobile access networks.

The company`s products enable network operators to lower overall network costs, increase operational efficiencies, and rapidly deploy new revenue-generating services. Customers include service providers, government agencies, and utility companies.

Sycamore`s stock was way up by 18.9% to $26.42 on the Nasdaq as of 10:40am ET Thursday morning.

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