"These latest time and frequency processor cards are keeping pace with the computer and server industry by providing PCI Express interface support, and they excel at saving our customers time and money when adding timing technology to their systems, " commented Paul Skoog, product marketing manager for Symmetricom. "Our full-featured, easy-to-use software development kits included with the cards enable programmers to integrate timing technology into their systems efficiently while leveraging Symmetricom's extensive timing expertise."

New capabilities of the PCI Express time and frequency processor cards include:

-- Precision Time Stamps -- provided on demand at extremely fast rates with low latency

-- Easy PCIe Card Integration -- the comprehensive software development kits, included standard with the product, make it extremely easy to integrate the bus cards into custom applications with 32/64-bit Windows and Linux and 64-bit Solaris

-- PCI Express Support -- provides support for the low profile PCIe bus interface, the computer expansion card standard replacing older PCI and PCI-X standards

-- Extensive Time Code Generation and Translation -- IRIG A, B, G, E, IEEE 1344, NASA 36, XR3 or 2137 formats supported to address a variety of timing requirements common to aerospace, defense and power utility applications

-- Industry Leading User Interface and Documentation -- extremely easy to use software interface and easy to follow documentation speed integration

-- Easy Predecessor Migration -- customer applications written around earlier bc635/637PCI cards can quickly and easily migrate to the new bc635/637PCIe cards; in most cases, as easy as plug-and-play compatibility

Versatile and highly reliable, Symmetricom's bus level timing cards deliver extremely precise and accurate time for government, aerospace and financial applications that require tight integration between precise time and frequency functions and the application software on the host computer.

Availability

The PCI Express time and frequency processor cards will be available December 1, 2009.

For more information, visit: http://www.symmetricom.com/products/bus-level-timing/pci-express/.

About Symmetricom, Inc.

As a worldwide leader in precise time and frequency products and services, Symmetricom provides "Perfect Timing" to customers around the world. Since 1985, the company's solutions have helped define the world's time and frequency standards, delivering precision, reliability and efficiency to wireline and wireless networks, instrumentation and testing applications and network time management. Deployed in more than 90 countries, the company's synchronization solutions include primary reference sources, building integrated timing supplies, GPS timing receivers, time and frequency distribution systems, network time servers and ruggedized oscillators. Symmetricom also incorporates technologies including Universal Timing Interface (UTI), Network Time Protocol (NTP), IEEE 1588 (Precision Time Protocol), and others supporting the world's migration to Next Generation Networks (NGN). Symmetricom's QoE video quality management solutions provide the tools necessary to accurately monitor and analyze video quality and bring higher satisfaction levels to the end user. Symmetricom is based in San Jose, Calif., with offices worldwide. For more information, visit http://www.symmetricom.com.

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6095518&lang=en

SYMM-P

SOURCE: Symmetricom

BroadPR 
Raychel Marcotte, 617-645-6022 
raychel@broadpr.com 
or 
Symmetricom 
Tracy Shriver, 707-636-1908 
tshriver@symmetricom.com

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--Free cash flow of $6.3 million

Symmetricom, Inc. (NASDAQ:SYMM), a worldwide leader in precise time and frequency technologies that accelerate the deployment and enable the management of next generation networks, today reported financial results for its first quarter ended September 27, 2009.

Net revenue for the first quarter of fiscal 2010 was $52.5 million compared to $55.9 million in the first quarter of fiscal 2009. Symmetricom reported net income of $0.2 million, or $0.00 per share, for the first quarter of fiscal 2010, compared to a net loss of $1.2 million, or $0.03 per share, in the first quarter of fiscal 2009.

Non-GAAP net income in the first quarter of fiscal 2010 was $2.2 million, or $0.05 per share, compared with $4.4 million, or $0.10 per share, in the same period of the prior year.

Cash, cash equivalents and short-term investments totaled $119.1 million as of September 27, 2009, an increase of $6.3 million from the $112.8 million reported as of June 28, 2009. Net cash provided by operating activities in the first quarter was $8.1 million and property, plant and equipment purchases were approximately $1.7 million, resulting in free cash flow of $6.3 million.

"First quarter revenue was in line with our guidance and we saw strength in many areas, most notably in our Timing Test and Measurement business and in the continuing market traction of our PackeTime solutions for Ethernet backhaul, which have now been sold for deployment in three service provider networks," said Dave Cote, Chief Executive Officer of Symmetricom.

"While we are still cautious with respect to the economic environment, we are encouraged by signs that the capital spending environment is improving and by a strong bookings quarter. Over the longer term, we believe our participation in the growing wireless and government markets, which require specialized timing and frequency technologies, positions us for growth through an extended product and market reach," continued Cote.

Division Results

Telecom Solutions Division revenue in the first quarter was $32.6 million compared to $39.0 million reported in the same period of last year. The year-over-year revenue comparison was impacted by approximately $8 million of cable products backlog that had built up in fiscal 2008 but was not able to ship until the first quarter of fiscal 2009.

Timing, Test & Measurement Division revenue in the first quarter was $19.9 million compared to $16.9 million reported in the same period of last year. Revenues in the TT&M Division improved based upon growth in sales from international markets and an increase in sales of secure communications products for government applications.

Second Quarter and Fiscal 2010 Guidance

Symmetricom's guidance for fiscal 2010 is as follows:

-- Net revenue is expected to be in the range of $210 million to $230 million

-- GAAP Earnings per share is expected to be in the range of $0.11 to $0.22

-- Non-GAAP Earnings per share is expected to be in the range of $0.35 to $0.44

For the second quarter of fiscal 2010, Symmetricom guidance is as follows:

-- Net revenue is expected to be in the range of $50 million to $57 million

-- GAAP Earnings / (Loss) per share is expected to be in the range of $(0.03) to $0.04

-- Non-GAAP Earnings per share is expected to be in the range of $0.05 to $0.10

In the first quarter of fiscal 2010, we adopted Financial Accounting Standards Board (FASB) authoritative guidance on accounting for our contingent convertible subordinated notes, which requires retrospective adoption to previously disclosed consolidated financial statements. Under this authoritative guidance, issuers of convertible debt instruments separately account for the liability and equity components of convertible instruments. As such, certain prior period amounts have been revised in the accompanying financial statement reports to reflect adoption. Our GAAP EPS Guidance includes the impact of the adoption of the FASB authoritative guidance. The adoption resulted in a material amount of additional non-cash interest expense.

A reconciliation of GAAP and non-GAAP guidance is provided at the end of this press release.

Investor Conference Call

As previously announced, management will hold a conference call to discuss these results today, at 1:30 p.m. Pacific Time. Investors are invited to join the conference call by dialing +1-415-228-5002 and referencing "Symmetricom." A live webcast will also be available on the investor relations section of the company's website at www.symmetricom.com. An audio replay will be available for one week and can be accessed by dialing +1-203-369-1710.

About Symmetricom, Inc.

As a worldwide leader in precise time and frequency products and services, Symmetricom provides "Perfect Timing" to customers around the world. Since 1985, the Company's solutions have helped define the world's time and frequency standards, delivering precision, reliability and efficiency to wireline and wireless networks, instrumentation and testing applications and network time management. Deployed in more than 90 countries, the Company's synchronization solutions include primary reference sources, building integrated timing supplies (BITS), GPS timing receivers, time and frequency distribution systems, network time servers and ruggedized oscillators. Symmetricom also incorporates technologies including Universal Timing Interface (UTI), Network Time Protocol (NTP), IEEE 1588 (Precision Time Protocol), and others supporting the world's migration to Next Generation Networks (NGN). Symmetricom's QoE video quality management solutions provide the tools necessary to accurately monitor and analyze video quality and bring higher satisfaction levels to the end user. Symmetricom is based in San Jose, California, with offices worldwide. For more information, visit http://www.symmetricom.com.

Non-GAAP Information

Certain non-GAAP financial information is included in this press release. In the reconciliation of GAAP to Non-GAAP results, Symmetricom excludes certain items related to non-cash equity-based compensation, amortization of acquired intangibles, integration and restructuring charges, impairment of goodwill and other intangibles, gains and losses on asset sales, investments and repayment of convertible notes, non-cash interest expense charges, and other unusual or infrequent items. The income tax effect after these Non-GAAP adjustments is determined based upon the Company's estimate of its annual Non-GAAP effective tax rate excluding these Non-GAAP adjustments. Symmetricom believes that excluding such items provides investors and management with a representation of the Company's core operating performance and with information useful in assessing our prospects for the future and underlying trends in Symmetricom's operating performance. Management uses such Non-GAAP information to evaluate financial results and to establish operational goals. Non-GAAP information should not be considered superior to or as a substitute for data prepared in accordance with GAAP. A reconciliation of the non-GAAP results to the GAAP results is provided in the financial schedules portion of this press release.

Free cash flow is defined as net cash provided by operating activities minus purchases of property, plant and equipment. We believe this metric provides useful information to our investors, analysts, and management about the level of cash generated by normal business operations, including the use of cash for the purchase of property, plant and equipment. Management also views it as a measure of cash available to pay debt and return cash to stockholders. Free cash flow is not a GAAP financial measure and should not be considered superior to or a substitute for operating cash flow or other cash flow data prepared in accordance with GAAP.

Safe Harbor

This press release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the safe harbor created by those sections. These forward-looking statements include statements concerning second quarter and fiscal 2010 guidance and our prospects for longer term growth expectations of operating performance in fiscal 2010, as well as the information regarding the usefulness of the non-GAAP financial information. The statements in this press release are made as of the date of this press release, even if subsequently made available by Symmetricom on its website or otherwise. Symmetricom's actual results could differ materially from those projected or suggested in these forward-looking statements. Factors that could cause future actual results to differ materially from the results projected in or suggested by such forward-looking statements include: reduced rates of demand for telecommunication products, cable products or test and measurement products, our customers' ability and need to upgrade existing equipment, our ability to maintain or reduce manufacturing and operating costs, timing of orders, cancellation or delay of customer orders, loss of customers, customer acceptance of new products, recessionary pressures, geopolitical risks such as terrorist acts and the risk factors listed from time to time in Symmetricom's reports filed with the Securities and Exchange Commission, including the annual report on Form 10-K for the fiscal year ended June 28, 2009 and subsequent Form 10-Q's and 8-K's.

SYMM-F

SYMMETRICOM, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(unaudited)
                                              Three months ended
                                              September 27,     June 28,          September 28,
                                              2009              2009 (1)          2008 (1)
Net revenue                                   $    52,474       $    60,356       $    55,898
Cost of sales:
Cost of products and services                      29,597            31,057            26,609
Amortization of purchased technology               368               369               368
Integration and restructuring charges              862               1,591             -
Total cost of sales                                30,827            33,017            26,977
Gross profit                                       21,647            27,339            28,921
Gross margin                                       41.3   %          45.3   %          51.7   %
Operating expenses:
Research and development                           6,334             7,421             7,304
Selling, general and administrative                13,660            16,708            15,679
Amortization of intangible assets                  95                103               103
Integration and restructuring charges              476               1,368             585
Total operating expenses                           20,565            25,600            23,671
Operating income                                   1,082             1,739             5,250
Loss on repayment of convertible notes, net        -                 -                 (5,623 )
Loss on short-term investments, net                -                 -                 (473   )
Interest income                                    461               226               768
Interest expense                                   (1,274 )          (1,219 )          (1,654 )
Earnings (loss) before income taxes                269               746               (1,732 )
Income tax provision (benefit)                     95                (740   )          (556   )
Net income (loss)                             $    174          $    1,486        $    (1,176 )
Earnings (loss) per share:
Basic                                         $    -            $    0.03         $    (0.03  )
Diluted                                       $    -            $    0.03         $    (0.03  )
Weighted average shares outstanding:
Basic                                              43,177            43,028            43,964
Diluted                                            43,815            43,619            43,964
(1) Adjusted for the retrospective adoption of recently issued
authoritative guidance on accounting for our contingent convertible
subordinated notes

SYMMETRICOM, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
                                                               September 27,     June 28,
                                                               2009              2009 (1)
ASSETS
Current assets:
                   Cash and cash equivalents                   $      78,134     $      72,064
                   Short-term investments                             40,936            40,737
                   Accounts receivable, net                           34,337            42,389
                   Inventories, net                                   37,691            38,566
                   Prepaids and other current assets                  16,002            16,143
                   Total current assets                               207,100           209,899
Property, plant and equipment, net                                    21,136            20,749
Intangible assets, net                                                4,845             5,308
Deferred taxes and other assets                                       36,463            36,431
                   Total assets                                $      269,544    $      272,387
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
                   Accounts payable                            $      7,085      $      8,116
                   Accrued compensation                               15,721            19,093
                   Accrued warranty                                   3,775             3,737
                   Other accrued liabilities                          9,642             9,810
                   Total current liabilities                          36,223            40,756
Long-term obligations                                                 52,655            51,769
Deferred income taxes                                                 334               334
                   Total liabilities                                  89,212            92,859
Stockholders' equity:
                   Common stock                                       200,791           200,152
                   Accumulated other comprehensive income             135               144
                   Accumulated deficit                                (20,594 )         (20,768 )
                   Total stockholders' equity                         180,332           179,528
                   Total liabilities and stockholders' equity  $      269,544    $      272,387
                   (1) Adjusted for the retrospective adoption of recently issued
                   authoritative guidance on accounting for our contingent
                   convertible subordinated notes

SYMMETRICOM, INC.
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(In thousands, except per share amounts)
(unaudited)
                                               Three months ended
                                               September 27,   June 28,        September 28,
                                               2009            2009 (1)        2008 (1)
Reconciliation from GAAP to Non-GAAP
GAAP net earnings (loss)                       $     174       $     1,486     $     (1,176 )
Add Non-GAAP adjustments:
Equity-based compensation expense:
Cost of products and services                        209             182             205
Research and development                             200             193             329
Selling, general and administrative                  195             641             472
Total equity-based compensation expense              604             1,016           1,006
Amortization of intangible assets:
Cost of products and services                        368             369             368
Operating expenses                                   95              103             103
Total amortization of intangible assets              463             472             471
Integration and restructuring charges                1,338           2,959           585
Non-cash interest expense on convertible notes       768             736             922
Loss on repayment of convertible notes, net          -               -               5,623
Loss on short-term investments, net                  -               -               473
Income tax effect of Non-GAAP adjustments            (1,117 )        (3,110 )        (3,519 )
Non-GAAP net earnings                          $     2,230     $     3,559     $     4,385
Earnings from per share-diluted:
GAAP income (loss)                             $     -         $     0.03      $     (0.03  )
Non-GAAP income                                $     0.05      $     0.08      $     0.10
Shares used in diluted shares calculation            43,815          43,619          44,582
(1) Adjusted for the retrospective adoption of recently issued
authoritative guidance on accounting for our contingent
convertible subordinated notes

SYMMETRICOM, INC.
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(In thousands, except per share amounts)
(unaudited)
                                                        Three months ended
                                                        September 27,   June 28,        September 28,
                                                        2009            2009 (1)        2008 (1)
Reconciliation from GAAP to Non-GAAP Gross Margin:
GAAP Revenue                                            $     52,474    $     60,356    $     55,898
GAAP Gross profit                                       $     21,647    $     27,339    $     28,921
GAAP Gross margin                                             41.3   %        45.3   %        51.7   %
Add Non-GAAP adjustments:
Equity-based compensation expense                             209             182             205
Amortization of intangible assets                             368             369             368
Integration and restructuring charges                         862             1,591           -
Non-GAAP Gross profit                                   $     23,086    $     29,481    $     29,494
Non-GAAP Gross margin                                         44.0   %        48.8   %        52.8   %
Reconciliation from GAAP to Non-GAAP Operating Expense:
GAAP Revenue                                            $     52,474    $     60,356    $     55,898
GAAP Operating expenses                                 $     20,565    $     25,600    $     23,671
Operating expense % to revenue                                39.2   %        42.4   %        42.3   %
Add Non-GAAP adjustments:
Equity-based compensation expense                             395             834             801
Amortization of intangible assets                             95              103             103
Integration and restructuring charges                         476             1,368           585
Non-GAAP operating expenses                             $     19,599    $     23,295    $     22,182
Non-GAAP operating expenses % to revenue                      37.3   %        38.6   %        39.7   %
(1) Adjusted for the retrospective adoption of recently issued
authoritative guidance on accounting for our contingent
convertible subordinated notes

                Symmetricom, Inc.
                RECONCILIATION OF FORWARD-LOOKING GUIDANCE FOR NON-GAAP FINANCIAL
                MEASURES
                TO PROJECTED GAAP REVENUE AND EPS
                (In thousands, except per share amounts)
                (Unaudited)
                                                               Three Months Ending December 27, 2009
                                                               Revenue                           Earnings Per Share
                                                               From          To                  From          To
GAAP Guidance                                                  $     50,000  $     57,000        $     (0.03 ) $     0.04
Estimated Non-GAAP Adjustments
                Equity-based compensation expense                                                      0.03          0.02
                Amortization of intangible assets                                                      0.01          0.01
                Integration and restructuring charges                                                  0.06          0.04
                Non-cash interest expense on convertible notes                                         0.02          0.02
                Income tax effect of non-GAAP adjustments                                              (0.04 )       (0.03 )
                Total Non-GAAP Adjustments                                                             0.08          0.06
Non-GAAP Guidance                                              $     50,000  $     57,000        $     0.05    $     0.10
                                                                                           Twelve Months Ending June 27, 2010
                                                               Revenue                           Earnings Per Share
                                                               From          To                  From          To
GAAP Guidance                                                  $     210,000 $     230,000       $     0.11    $     0.22
Estimated Non-GAAP Adjustments
                Equity-based compensation expense                                                      0.11          0.10
                Amortization of intangible assets                                                      0.03          0.03
                Integration and restructuring charges                                                  0.16          0.14
                Non-cash interest expense on convertible notes                                         0.07          0.07
                Income tax effect of non-GAAP adjustments                                              (0.13 )       (0.12 )
                Total Non-GAAP Adjustments                                                             0.24          0.22
Non-GAAP Guidance                                              $     210,000 $     230,000       $     0.35    $     0.44

SOURCE: Symmetricom, Inc.

Symmetricom, Inc. 
Dan Madden, +1-408-428-7929 
VP Finance & Investor Relations 
dmadden@symmetricom.com

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