TEL AVIV -- Scopus Video Networks Ltd. (NASDAQ: SCOP - News), a provider of digital video networking products, today announced its results for the first quarter of 2007, ending March 31, 2007.

First Quarter 2007 Results Summary

Revenues for the first quarter totaled $12.3 million, a 1.2% sequential increase from the $12.1 million revenues in the fourth quarter of 2006, and a 7.7% increase from the first quarter of 2006. The breakdown of revenue by region was 48% in EMEA, 30% in Asia and Pacific Rim and 22% in the Americas.

Gross profit in the first quarter of 2007 was $6.1 million compared with $6.0 million in the prior quarter, and $5.7 million in the first quarter 2006. Gross profit as a percentage of revenues was 50%, at a similar level when compared to both the prior quarter and the first quarter of 2006.

Pro-forma net loss for the first quarter of 2007, which excludes expenses related to stock based compensation as defined under FAS123R was $730 thousand, or $0.05 per share, compared to a net loss of $417 thousand, or $0.03 per share, in the fourth quarter of 2006, and a net profit of $60 thousand, in the first quarter of 2006.

Net loss on a GAAP basis for the first quarter of 2007 was $1.2 million, Or $0.09 per share, compared with $780 thousand, or $0.06 per share, in the fourth quarter of 2006 and a net loss of $377 thousand, or $0.03 per share in the first quarter of 2006.

The Company achieved a positive operating cash flow of $124 thousand during the quarter, and ended the first quarter with cash and cash equivalents of $23.5 million, plus $6.5 million in short term investments, totaling $30.0. This is compared with $30.0 million on December 31st, 2006.

"I am pleased with our progress and our first quarter results, which came in better than our expectations in all parameters: revenues, gross margin and positive operating cash flow," commented Dr. Yaron Simler, CEO of Scopus. "We saw good progress across the world. In the United States in particular, the splicing application of the IVG product has now advanced to the field trial stage in several locations with top-tier MSOs. This important milestone is another step forward in the execution of our strategy to penetrate leading US MSOs with our IVG product."

Scopus Video Networks (Nasdaq: SCOP)