Financials: Fourth Quarter 2005 and Year End 2005 Results

Investor Relations

Fourth Quarter 2005 and Year End 2005 Results

Fourth quarter financial highlights

  • SLMS revenues of $29.8 million up 64.0% over prior quarter due to acquisition of Paradyne on September 1, 2005
  • Gross margin at 40%
  • Operating expenses at $127.8 million due to $102.1 million impairment of intangible assets and goodwill
  • Non-GAAP Proforma EBITDA income of $1.1 million
  • Cash balance at $71.1 million
  • Cash balance net of debt obligations at $26.8 million increased for second consecutive quarter

Year end financial highlights

  • Total revenues of $151.8 million up 56.3% over prior year due to acquisition of Paradyne on September 1, 2005
  • SLMS revenues for 2005 represent 44% of total revenues, up from 30% of total revenues in 2004
  • Gross margin at 41%
  • Operating expenses at $187.1 million due to $102.1 million impairment of intangible assets and goodwill
  • Cash balance of $71.1 million reflects $5.9 million increase over prior year

Press release

Zhone Technologies Reports Fourth Quarter 2005 Financial Results

Financial Statements

Form 10-K for December 31, 2005




To supplement Zhone's consolidated financial statements presented in accordance with GAAP, Zhone uses pro forma EBITDA, a non-GAAP measure Zhone believes is appropriate to enhance an overall understanding of Zhone's past financial performance and prospects for the future. The presentation of this additional information is not meant to be considered in isolation or as a substitute for measures of financial performance prepared in accordance with GAAP. A reconciliation between net loss calculated on a GAAP basis and pro forma EBITDA on a non-GAAP basis is provided in a table immediately following the Unaudited Condensed Consolidated Statements of Operations included in the press release which can be accessed from the link above.