Centillium announced financial results for the fourth quarter and year ended Dec. 31, 2005

February 2, 2006

2 Min Read

FREMONT, Calif. -- Centillium Communications, Inc. (Nasdaq:CTLM - News), a leading provider of broadband access solutions, today announced financial results for the fourth quarter and year ended Dec. 31, 2005.

Net revenues in the fourth quarter of 2005 were $20.3 million, compared with net revenues of $20.0 million in the third quarter of 2005. The gross margin in the fourth quarter of 2005 was 59.7 percent, compared with 56.5 percent in the prior quarter.

The net loss in the fourth quarter of 2005 was $394,000, or $0.01 per share, compared with a net loss of $822,000, or $0.02 per share, in the third quarter of 2005.

For the year ended Dec. 31, 2005, net revenues were $76.1 million, compared with $71.2 million in 2004. The net loss in 2005 was $11.3 million, or a net loss of $0.29 per share, compared with a net loss of $43.1 million, or a net loss of $1.13 per share, in the prior year.

"I am pleased with our financial performance and diversification results in 2005," said Faraj Aalaei, co-founder and CEO of Centillium. "Compared with the prior year, we reduced our operating expenses by more than 30 percent, increased our gross margin by 680 basis points and reduced our net loss by 74 percent, or $31.8 million, while growing our revenues by 7 percent," said Aalaei.

"We also made significant progress in both our geographic and product diversification strategies in 2005. Our revenues outside of Japan were $27.1 million, up 77 percent, compared with $15.3 million in 2004. Revenues outside of Japan accounted for 36 percent of total revenues in 2005, compared with 22 percent in 2004. Our non-DSL revenues, including Voice over Internet Protocol (VoIP) and Optical revenues, more than tripled to $15.8 million, from $4.4 million in 2004. Our non-DSL revenues accounted for 21 percent of total revenues in 2005, compared with 6 percent in 2004. We remain committed to our diversification strategies and achieving profitability, and we look forward to further progress in the quarters to come," he said.

"We were pleased that our Atlanta(TM) product family was recently awarded the 2005 Product of the Year award by two publications: INTERNET TELEPHONY® magazine and analogZONE. INTERNET TELEPHONY has recognized Centillium for its telephony technology innovation for three consecutive years, and analogZONE selected our products based on strong technical merit, design innovation and marketability," said Aalaei.

Centillium Communications Inc.

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