Sycamore Reports Q3

CHELMSFORD, Mass. -- Sycamore Networks, Inc. (NASDAQ: SCMR), a leader in intelligent bandwidth management solutions for fixed line and mobile network operators worldwide, today reported its results for the third quarter ended April 26, 2008. Revenue for the third quarter of fiscal 2008 was $21.0 million, compared with $43.6 million for the third quarter of fiscal 2007.

Net loss for the third quarter of fiscal 2008, on a generally accepted accounting principles ("GAAP") basis, was $2.7 million, or $0.01 per share, compared with net income of $6.7 million, or $0.02 per share for the third quarter of fiscal 2007. Non-GAAP net loss for the third quarter of fiscal 2008 was $0.4 million, or $0.00 per fully diluted share, compared with non-GAAP net income of $8.9 million, or $0.03 per fully diluted share for the third quarter of fiscal 2007. The reconciliation between net income on a GAAP basis and net income on a non-GAAP basis is provided in a table immediately following the Unaudited Non-GAAP Consolidated Statements of Operations included with this release.

Net income for the first nine months of fiscal 2008, on a GAAP basis, was $14.0 million or $0.05 per fully diluted share, compared with a net loss of $7.1 million or $0.03 per fully diluted share for the first nine months of fiscal 2007. Non-GAAP net income for the first nine months of fiscal 2008 was $21.6 million, or $0.08 per fully diluted share, compared with non-GAAP net income of $20.2 million, or $0.07 per fully diluted share for the first nine months of fiscal 2007. The reconciliation between net income (loss) on a GAAP basis and net income (loss) on a non-GAAP basis is provided in a table immediately following the Unaudited Non-GAAP Consolidated Statements of Operations included with this release.

"We are disappointed with our third quarter results," said Daniel E. Smith, president and chief executive officer. "We remain focused on expanding our customer base, and will continue to focus our development initiatives toward products and features that help our customers meet critical operational challenges and demand for intelligent bandwidth management."

Sycamore Networks Inc.