SANTA BARBARA, Calif. -- Occam Networks®, Inc. (Nasdaq: OCNW), a leading broadband access supplier offering multiservice access platform (MSAP) solutions based on pure packet technologies, today reported financial results for the fourth-quarter and year ended December 31, 2008.

Revenue for the fourth quarter was $31.7 million, up 26 percent from the prior quarter and up 49 percent from the same quarter a year ago. Sequential revenue growth was primarily due to increased volume in the company’s copper business.

Gross margin for the fourth quarter of 2008 was $13.1 million, or 41% of revenue, compared with $10.8 million, or 43% of revenue, for the prior quarter. Gross margin for the fourth quarter of 2008 was impacted primarily by an inventory provision for certain product components. Gross margin for the fourth quarter of 2007 was $9.2 million, or 43% of revenue.

As reported under U.S. generally accepted accounting principles (GAAP), net income available to common stockholders for the fourth quarter of 2008 was $1.1 million, or $0.06 per basic and diluted share, compared with a net loss of $659,000, or a loss of $0.03 per basic share, for the third quarter and with a net loss of $4.6 million, or a loss of $0.23 per basic share, for the fourth quarter of 2007.

Non-GAAP net income available to common stockholders for the fourth quarter of 2008 was $1.5 million, or $0.07 per diluted share, which excludes stock-based compensation expense of $698,000 and release of royalty accrual of $360,000. This compared with a net loss of $31,000 or $0.00 per basic share, for the third quarter, which excludes stock-based compensation expense of $628,000, and with a net loss of $1.9 million, or a loss of $0.09 per basic share, for the fourth quarter of 2007, which excludes stock-based compensation of $526,000 and a charge of $2.2 million related to the expense of purchased in-process technology. A reconciliation of Occam’s non-GAAP results to its GAAP results is provided in the financial statements portion of this news release.

"During the year, our key goal was to position Occam for profitability by growing our overall customer base and launching sales of our GPON product, and these drove the successful execution of our business during the quarter," said Bob Howard-Anderson, president and CEO of Occam. "During the quarter we also experienced some slowdown in bookings and have seen additional order delays during the first quarter, as customers reacted to the economic environment.”

As a result of the current environment, the company anticipates first quarter 2009 revenues to approximate those of first quarter 2008. In addition, due to the economic uncertainty, the company will not be providing financial expectations for 2009 at this time. “We believe, though, that the company is positioned for long-term growth in the markets that we serve, and we remain optimistic about our future prospects once the economy recovers," added Mr. Howard-Anderson.

For full-year 2008, revenue was $99.3 million, up 32 percent from the prior year. GAAP net loss for 2008 was $6.7 million, or $0.34 per basic share, compared with a GAAP net loss for 2007 of $10.4 million, or $0.53 per basic share. Non-GAAP net loss for 2008 was $3.3 million, or $0.17 per basic share, compared with a non-GAAP net loss for 2007 of $6.1 million, or $0.31 per basic share.

Occam Networks Inc. (Nasdaq: OCNW)