Terabeam Reports Q2

SAN JOSE, Calif. -- Terabeam, Inc. (NASDAQ:TRBM), a leading developer and supplier of broadband wireless solutions, today announced its financial results for the second quarter ended June 30, 2006.

Revenue for the quarter ended June 30, 2006 was $20.8 million, an increase of approximately 12% from the revenue of $18.5 million for the quarter ended March 31, 2006 and an increase of approximately 189% from the revenue of $7.2 million for the quarter ended June 30, 2005. The significant increase in revenue over the prior year's comparable quarter resulted primarily from Terabeam's acquisition of the operations of Proxim Corporation in the third quarter of 2005.

The net loss for the quarter ended June 30, 2006 was $3.0 million ($0.14 per share-diluted) compared to net loss of $4.5 million ($0.21 per share-diluted) for the quarter ended March 31, 2006 and net loss of $987,000 ($0.04 per share-diluted) for the quarter ended June 30, 2005. The significant increase in net loss over the prior year's comparable quarter resulted primarily from Terabeam's acquisition of the operations of Proxim Corporation in the third quarter of 2005.

Robert Fitzgerald, Terabeam's Chief Executive Officer, stated, "The second quarter has been a quarter of transition for the company. Our new President, Pankaj Manglik, has brought an ambitious and decisive management style that has energized the organization. We have taken cost reduction actions that have decreased our operating expenses. We are very encouraged by the response of the market to our AP-4000-MR family of metropolitan scale Wi-Fi mesh products, and we expect our mesh products to contribute an increasing percentage of our overall revenues over the second half of the year. We still have less visibility into the revenue side of the equation than we would like but are addressing the situation with an enhanced management team and renewed energy."

Terabeam Inc. (Nadsaq: TRBM)