BURLINGTON, Mass. -- Acme Packet, Inc. (NASDAQ: APKT), the leader in session border control solutions, today announced results for the first quarter ended March 31, 2008 and updated its previously issued business outlook for fiscal year 2008.

Results for the First Quarter of Fiscal Year 2008

Total revenues for the first quarter of fiscal year 2008 grew to a record $31.7 million, an increase of 26% compared to $25.1 million in the same period last year. Net income for the first quarter of fiscal year 2008 was $5.0 million, or $0.08 per share on a diluted basis, compared to $4.3 million, or $0.06 per share on a diluted basis, in the same period last year. Net income on a non-GAAP1 basis for the first quarter of 2008 was $6.1 million, or $0.09 per share on a diluted basis compared to $5.0 million, or $0.08 per share on a diluted basis in the same period last year. Non-GAAP net income1 differs from GAAP net income as it excludes stock-based compensation expense, net of tax, of approximately $1.0 million, or $0.01 per share in the first quarter of fiscal year 2008 and approximately $0.7 million, or $0.02 per share in the first quarter of fiscal year 2007. A reconciliation of GAAP to non-GAAP results is included at the end of this press release.

“Acme Packet delivered another strong quarter highlighted by record revenues, solid earnings growth and record cash flow from operations,” said Andy Ory, President and Chief Executive Officer of Acme Packet, Inc. “The first quarter marked our tenth consecutive quarter of both sequential and year-over-year revenue growth. We believe this is further evidence of our expanding market leadership and the growing value our solutions provide in the next generation networks of service providers, enterprises, and contact centers. Based on our strong start to the year and our current outlook, we believe we are well positioned to deliver on our full year growth plans in 2008.”

Acme Packet Inc. (Nasdaq: APKT)