Copper Mountain Cuts Q3 Loss

PALO ALTO, Calif. -- Copper Mountain Networks, Inc. (Nasdaq:CMTN), a leading provider of intelligent broadband access solutions, today announced financial results for the third quarter of 2003. Net revenue for the third quarter of 2003 was $3.7 million, compared with $3.6 million in the second quarter of 2003.

Net loss on a generally accepted accounting principles (GAAP) basis for the third quarter of 2003 was $2.3 million, or $0.40 per share, compared to a net loss of $6.1 million, or $1.09 per share in the second quarter of 2003.

The net loss for the third quarter of 2003 includes a gain of $2.6 million related to the recovery of bad debt and a non-cash stock-based compensation charge of $0.8 million. The net loss for the second quarter of 2003 includes a gain of $0.1 million related to the recovery of bad debt expense and a non-cash stock-based compensation charge of $1.5 million.

Net cash and short-term investments utilized during the third quarter of 2003 declined to $3.3 million, versus $4.2 million during the second quarter of 2003. Cash and short-term investments totaled $27.6 million at the end of the third quarter of 2003.

Key recent accomplishments include:

Also of significance during the quarter was the finalization of the DSL Forum specification TR-059 entitled "DSL Evolution - Architecture Requirements for the Support of QoS-Enabled IP Services." This effort is expected to strongly influence the evolution of broadband access networks -- especially those of the world's largest carriers -- and is the primary application Copper Mountain's VantEdge Access BRAS was designed to address.

"The DSL Forum TR-059 specification is a significant milestone for the broadband industry, and the VantEdge was designed specifically for distributed BRAS applications described by this standard. Copper Mountain continues to be well positioned in current large carrier procurement activities, and we expect to benefit from the increased momentum this standard will generate among carriers worldwide," said Rick Gilbert, Chairman and Chief Executive Officer of Copper Mountain Networks. "Beyond our focus on TR-059, we delivered significant additional VantEdge functionality during the third quarter to address subscriber management and remote terminal aggregation applications, expanding our addressable market for broadband aggregation solutions."

Copper Mountain Networks Inc.