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GigaBeam Raises $10M

GigaBeam reports results for the second quarter and announces a $10M private placement

August 21, 2006

1 Min Read

HERNDON, Va. -- GigaBeam Corporation (NASDAQ: GGBM), a world leader in providing ultra high speed point-to-point wireless solutions, marketed as WiFiber(R) wireless fiber, announced today results for the second quarter ended June 30, 2006.

Revenue for the second quarter of 2006 was $696,657, compared to $108,200 for the second quarter of 2005 (the first quarter in which the company recognized revenue). The net loss allocated to common shareholders for the second quarter of 2006 was $5,714,249, compared to $3,966,873 for the comparable quarter in 2005.

Gross margin for the second quarter as a percent of revenue was 61.6%, a significant improvement over the prior year's comparable quarter (the first quarter in which the company recognized revenue) which was (48.7%).

Second quarter 2006 results included a share-based compensation expense of approximately $694,028 reflecting the adoption of SFAS 123(R).

Lou Slaughter, GigaBeam's Chairman and CEO, said, "In light of the termination of our Middle East and North Africa ("MENA") reseller, as previously announced, we are pleased with the results for the quarter. International markets represent an important market opportunity for our company and, as previously noted, the termination of our MENA relationship resulted in delayed revenue and revenue growth. We remain highly confident that we will achieve significant revenue growth in international markets. In addition, our products continue to gain market acceptance and penetration in the United States, as evidenced by our previously reported order for 20 links from Wireless Facilities Inc. (NASDAQ: WFII). We expect to announce additional important orders in the United States market in the near future."

GigaBeam Corp. (OTC: GGBM)

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