Financials: Third Quarter 2006 Results

Investor Relations

Third Quarter 2006 Results

Third quarter financial highlights

  • SLMS revenues of $23.6 million down over prior quarter due to seasonal issues in our international markets and deferred buying patterns of our largest customers
  • Gross margin of 35%
  • Operating expenses of $136.3 million include $113.7 million non-cash charge for impairment of goodwill and intangible assets
  • Non-GAAP Proforma EBITDA loss of $5.1 million
  • Cash balance of $65.8 million declined from prior quarter primarily due to $1.5M debt prepayment and current quarter EBIDTA loss
  • Cash balance net of debt obligations at $24.2 million

Press Release

Zhone Technologies Reports Third Quarter 2006 Financial Results

Financial Statements

Form 10-Q for September 30, 2006

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.