Zhone Technologies reports second-quarter 2008 financial results

July 22, 2008

1 Min Read

OAKLAND, Calif. -- Zhone Technologies, Inc. (NASDAQ:ZHNE), a global leader in multi-service access solutions, today reported its financial results for the second quarter ended June 30, 2008.

Revenue for the second quarter of 2008 was $40.1 million compared with $43.0 million for the first quarter of 2008 and $44.1 million for the second quarter of 2007. Net loss for the second quarter of 2008, calculated in accordance with generally accepted accounting principles (“GAAP”), was $80.3 million or $0.53 per share compared with a net loss of $0.9 million or $0.01 per share for the first quarter of 2008, and a net loss of $4.6 million or $0.03 per share for the second quarter of 2007. Pro forma earnings before stock-based compensation, interest, taxes, depreciation, lease liability accruals, gain on sale of intangible assets, and goodwill impairment (“EBITDA”) was a $5.2 million loss for the second quarter of 2008, compared to a pro forma EBITDA loss of $2.8 million for the first quarter of 2008, and pro forma EBITDA loss of $2.9 million for the second quarter of 2007.

Zhone’s chief executive officer Mory Ejabat stated, “Our results for the second quarter were unfortunately overshadowed by events with our largest customer in Latin America, who made a request for unacceptably aggressive price reductions late in the negotiations over a multi-million dollar expansion. Our fundamentals in other markets remain strong, and we will continue to build on them to improve gross margins while reducing expenses to achieve profitability.”

Zhone Technologies Inc. (Nasdaq: ZHNE)

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