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Crucially, the Avocent end-to-end solution facilitates a high level of security. For reasons of client confidentiality, Microsoft manages servers at the console level and the Avocent end-to-end solution means that IT managers can see and manage these consoles easily, saving time and increasing efficiency.

Said Hao-Yin Tsang, Lab Engineer at MTC Thames Valley: "The alliance between Microsoft and Avocent is a huge advantage for us. Without these solutions we simply couldn't run our data center effectively. The Avocent technologies provide a secure, simple means of managing the entire infrastructure, reducing the amount of time we need to spend in the data center and helping us provide a reliable and effective service to our customers."

MTC is looking to use Avocent solutions to further optimize the data center in the future, including Avocent MergePoint(R) Infrastruture Explorer, which will create a diagram of the data center to calculate power consumption across all devices.

Said Owen McKee, Country Manager UK&I, Avocent: "Microsoft has to offer its customers best-in-class data center services and it has to do it efficiently and securely. Avocent solutions are the foundation that makes this possible by giving Microsoft technicians full visibility of facility performance, remote access and the infrastructure to ensure client data remains absolutely confidential."

About Avocent Corporation

Avocent delivers IT operations and infrastructure management solutions for enterprises worldwide, helping customers to reduce costs and simplify complex IT environments via integrated, centralized in-band and out-of-band hardware and software. Additional information is available at : www.avocent.com.

Forward-looking Statements

This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made, including the risks associated with general economic conditions, risks attributable to future product demand, sales, and expenses, risks associated with acquisitions and acquisition integration, risks associated with product design efforts and the introduction of new products and technologies, and risks associated with obtaining and protecting intellectual property rights. Other factors that could cause operating and financial results to differ are described in the Avocent annual report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2009. Other risks may be detailed from time to time in reports to be filed with the SEC. Avocent does not undertake any obligation to publicly update its forward-looking statements based on events or circumstances after the date hereof.

Copyright (C) 2009, Avocent Corporation. All rights reserved. LANDesk and Avocent and their respective logos are registered trademarks or trademarks of Avocent Corporation, its subsidiaries or its affiliated companies in the United States and/or other countries. Other brands and names may be claimed as the property of others.

SOURCE: Avocent Corporation

Avocent Corporation 
Arlena Jackson, 256-261-6430 
Global Public Relations 
Arlena.Jackson@avocent.com 
or 
Porter Novelli 
Jennifer Walker, 0207 853 2277 
Jennifer.walker@porternovelli.co.uk

- The company reported net sales of $137.6 million for the third quarter of 2009, compared to $128.6 million for the second quarter of 2009. Operational earnings per diluted share was $0.45 compared to $0.32 in the second quarter of 2009 while GAAP net income per diluted share was $0.16 compared to a net loss of $0.08 in the second quarter of 2009.

- Avocent's third quarter sales increased sequentially from the second quarter of 2009 by approximately $9.0 million. Sales, however, declined 25 percent to $137.6 million compared with $183.0 million in the third quarter of 2008 due to ongoing weaker IT spending, particularly for our server-linked products. Total branded product sales were $100.5 million for the third quarter of 2009, a decrease of 19 percent from $124.6 million in the third quarter 2008. Branded product sales rose to 73 percent of total third quarter 2009 net sales compared with 68 percent in the third quarter of 2008. Total OEM product sales were $37.1 million for the third quarter of 2009, a decrease of 36 percent from $58.4 million in the third quarter 2008. OEM product sales represented 27 percent of third quarter 2009 net sales compared with 32 percent in the third quarter of 2008. U.S. sales declined 21 percent to $74.9 million and international sales were down 29 percent to $62.7 million compared with the third quarter of 2008.

"As we expected, our third quarter revenue increased from the second quarter due primarily to higher government product sales, and we continued to experience a soft market for our server-linked products," said Mike Borman, Avocent's CEO.

- Third quarter 2009 operational net income, which is income prior to acquired in-process research and development, intangible amortization, restructuring and integration costs, and stock compensation expenses, decreased 34 percent to $20.1 million, or $0.45 per diluted share, compared with operational net income of $30.4 million, or $0.67 per diluted share, in the third quarter of 2008.

- GAAP net income for the third quarter of 2009 was $7.1 million, or $0.16 per diluted share, compared with GAAP net income of $11.0 million, or $0.24 per diluted share, in the third quarter of 2008. Net adjustments to reconcile operational net income to GAAP net income were $13.1 million in the third quarter of 2009, compared to $19.5 million in the third quarter of 2008.

- Operational gross profit for the third quarter of 2009 was $89.3 million compared with $118.6 million in the third quarter of 2008. Operational gross margin rose to 64.9 percent in the third quarter of 2009 compared with 64.8 percent in the third quarter of 2008. GAAP gross profit for the third quarter of 2009 was $84.6 million compared with $114.0 million in the third quarter of 2008. GAAP gross margin was 61.5 percent in the third quarter of 2009 compared with 62.3 percent in the third quarter of 2008.

- Research and development expenses excluding stock-based compensation, were down 18.3 percent to $18.7 million ($19.6 million on a GAAP basis, which includes stock-based compensation of $869,000), or 13.6 percent of sales, compared with $22.9 million ($24.4 million on a GAAP basis, which includes stock based compensation of $1.5 million), or 12.5 percent of sales, in the third quarter of 2008.

- Selling, general and administrative expenses, excluding stock-based compensation declined 16.5 percent to $47.0 million ($52.2 million on a GAAP basis, which includes stock-based compensation of $5.2 million), or 34.2 percent of sales, compared with $56.3 million ($60.3 million on a GAAP basis, which includes stock-based compensation of $4.0 million), or 30.7 percent of sales, in the third quarter of 2008.

- Operational operating income, excluding restructuring and integration costs, stock-based compensation and intangible asset amortization, was $23.7 million in the third quarter of 2009 compared with $19.2 million in the second quarter of 2009 and $39.4 million in the third quarter of 2008. GAAP operating income was $2.3 million in the third quarter of 2009 compared with $693,000 in the second quarter of 2009 and $13.8 million in the third quarter of 2008.

"Our operating income benefited from the restructuring programs we implemented earlier in 2009," said Borman.

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