Proxim Reports $7.8M Q1 Loss

SUNNYVALE, Calif. -- Proxim Corporation (NASDAQ:PROX) , a provider of wireless networking equipment for Wi-Fi and broadband wireless, today announced unaudited financial results for the first quarter ended April 1, 2005. Revenue for the first quarter of 2005 was $25.4 million.

This compares with revenue of $24.1 million in the fourth quarter of 2004, and $26.7 million for the first quarter of 2004. The net loss attributable to common stockholders computed in accordance with generally accepted accounting principles (GAAP) for the first quarter of 2005 was $(7.8) million, or $(0.24) per common share. This compares with a GAAP net loss of $( 67.7) million, or $(2.69) per common share, in the preceding fourth quarter of 2004 and with a GAAP net loss of $(17.5) million, or $(1.42) per common share, in the first quarter of 2004.

The non-GAAP, or pro-forma net loss in the first quarter of 2005 was $(4.5) million, or $(0.14) per common share, compared to a pro-forma net loss of $(7.6) million, or $(0.30) per common share, in the fourth quarter of 2004, and a pro-forma net loss of $(5.1) million, or $(0.41) per common share, in the first quarter of 2004.

A detailed and specific reconciliation of the differences between the GAAP net loss and pro-forma net loss is included in the accompanying financial table.

On January 27, 2005, the Company announced that it engaged Bear, Stearns & Co. to explore strategic alternatives for the Company, including capital raising and merger opportunities. The Company remains actively engaged with Bear, Stearns & Co. and is currently in discussions with a potential third party purchaser. There can be no assurance that a transaction will occur and, if a transaction occurred, there can be no assurance that any consideration available to the holders of the Company's Class A common stock (Common Stock) would approach the current market trading value of the Company's Common Stock given, among other factors, the preferences held by senior equity and debt holders.

The Company has an immediate need for additional financing. If the Company were not able to enter into an agreement with a third party purchaser or able to obtain sufficient financing in the second quarter of 2005, it would be required to seek protection under applicable bankruptcy laws.

Proxim Corp.