FRAMINGHAM, Mass. -- NMS Communications (NASDAQ: NMSS - News), a leading provider of communications technologies and solutions for converged and mobile networks, today announced preliminary financial results for the third quarter, ended September 30, 2006. For the third quarter, the Company expects revenue to be between $20.0 and $21.0 million. Non-GAAP net loss per share, before stock-based compensation and amortization of acquired intangible assets, is expected to be between $(0.11) and $(0.13). GAAP net loss per share is expected to be between $(0.15) and $(0.17). This compares to previously issued company guidance of total revenue between $23 and $24 million, non-GAAP loss per share between $(0.07) and $(0.08) and GAAP loss per share of $(0.11) to $(0.12). The anticipated non-GAAP and GAAP results include a restructuring charge of approximately $1.3 million, or $0.02 per share, for the previously disclosed closure of the Redbank, NJ facility. This charge was not anticipated at the time management provided original guidance for the third quarter.

Bob Schechter, Chairman and CEO of NMS Communications, stated, "We are disappointed with the financial results we expect to deliver for the third quarter. Revenue will fall short of our expectations, principally in our Platform Solutions Business Unit, which experienced softness in demand from a broader perspective than was the case in the second quarter. We are reviewing all aspects of our business in depth with the objective of returning to profitable operations as quickly as possible."

NMS Communications Corp.