Somera Q1 Revenues Drop

SANTA BARBARA, Calif. -- Somera (Nasdaq: SMRA), a provider of equipment asset management solutions to the telecommunications industry, today announced financial results for the first quarter ended March 31, 2003.

Revenue for the first quarter of 2003 was $35.8 million compared to $55.0 million reported in the first quarter of 2002. The Company reported a net loss of $2.1 million or 4 cents per share in the first quarter of 2003 compared to net income of $3.6 million or 7 cents per share in the corresponding quarter a year ago.

The Company continued to scrutinize costs and identify business efficiencies. As a result, operating expenses for the first quarter of 2003 were $13.6 million, the lowest level reported since the first quarter of 2002.

The Company reported a strong balance sheet with $52.7 million in cash and cash equivalents and no long-term debt.

"Clearly this has been another difficult quarter for the industry and our company," said Rick Darnaby, CEO of Somera. "Telecom operators in North America were slow to release budgets at the beginning of the year and spending remained at low levels. We saw little relief from pricing pressures from manufacturers, which hindered our ability to get momentum behind our new equipment sales and impacted our margins overall."

Outlook

The Company will not be providing guidance at this time due to the lack of predictability of capital spending in the second quarter and 2003.

"I think we're not alone when we say that predictability in 2003 remains difficult. Although we've experienced some positive traction with the contracts we've signed and the relationships we've built with our customers, there's little to suggest that operators will return to consistent and predicable spending levels. And, we can't ignore the overhang of the macro-economic environment on our business," said Darnaby.

"We believe our business foundation is solid. Our focus will remain on executing our plan for future growth, while applying rigor and discipline to our spending, maintaining strong balance sheet metrics, and building shareholder value over the long-term," concluded Darnaby.

Somera Communications