CUPERTINO, Calif. -- Packeteer®, Inc. (NASDAQ: PKTR), the pioneer and global leader in Application Traffic Management, today announced revenues and results of operations for the quarter ended September 30, 2004.

Net revenues for the third quarter 2004 were $23.1 million, compared with $21.6 million for the second quarter 2004, an increase of 7%. Net revenues for the third quarter 2003 were $18.4 million. Net income for the third quarter 2004 was $3.4 million or $0.10 per share. This compares to second quarter 2004 net income of $2.1 million or $0.06 per share. The third quarter 2003 net income was $3.0 million or $0.09 per share.

The balance sheet at the end of Q3 2004 remained strong. Total cash and investments of $102.0 million at September 30, 2004 were $2.5 million higher than the balances of $99.5 million at June 30, 2004. Accounts receivable of $13.1 million at September 30, 2004 represented 52 days sales outstanding compared to 46 days sales outstanding at June 30, 2004. Total inventories remained flat at $3.1 million at September 30, 2004, compared to June 30, 2004.

"We were pleased with our overall third quarter 2004 performance," said Dave Côté, President and CEO. "In the third quarter, our Asia Pacific operations bounced back to a more normal revenue contribution level, helping us to achieve record quarterly revenues and net income. While we had anticipated slightly higher revenues from our North American and European businesses, we believe they will be stronger contributors to our business in the fourth quarter. We continue to plan for sequential revenue and profit growth in our upcoming quarter."

Packeteer Inc.