TRBM Terabeam (MM)

Terabeam, Inc. (NASDAQ:TRBM), a global pioneer and leading developer and supplier of Mesh, WiMAX, Wi-Fi and Millimeter Wave wireless products and�solutions, today announced its financial results for the first quarter ended March 31, 2007. Revenue for the quarter ended March 31, 2007 was $17.7 million, a decrease of approximately 3% from the revenue of $18.2 million for the quarter ended December 31, 2006 and a decrease of approximately 4% from the revenue of $18.5 million for the quarter ended March 31, 2006. The net loss for the quarter ended March 31, 2007 was $3.0 million ($0.14 per share-diluted) compared to net loss of $2.0 million ($0.09 per share-diluted) for the quarter ended December 31, 2006 and net loss of $4.5 million ($0.21 per share-diluted) for the quarter ended March 31, 2006. Robert Fitzgerald, Terabeam�s Chief Executive Officer, stated �We are pleased with the continued stabilization we experienced in the first quarter of 2007. We believe our results for the first quarter, which is typically our weakest quarter, together with our new products and momentum we are seeing in the marketplace, position us well for the rest of 2007.� Conference Call Information Terabeam will host a conference call to discuss this release, financial results, developments at the company, and other matters of interest to investors and others today, May 9, 2007 starting at 5:00 p.m. Eastern Time. The discussion may include forward-looking information. To participate in this conference call, please dial 800-231-9012 (or 719-457-2617 for international callers), confirmation code 4359680 for all callers, at least ten minutes before start time. The conference call will also be broadcast live over the Internet. Investors and others are invited to visit Terabeam�s website at http://www.terabeam.com to access this broadcast. Replays will be available telephonically for approximately one week by dialing 888-203-1112 for domestic callers and 719-457-0820 for international callers, confirmation code 4359680 for all callers, and over the Internet for approximately 90 days at Terabeam�s website at http://www.terabeam.com. About Terabeam Terabeam, Inc. has two primary subsidiaries Proxim Wireless Corporation and Ricochet Networks, Inc. Proxim Wireless Corporation is a global leader in providing WiMAX, Wi-Fi, and other broadband wireless solutions to meet the performance, scalability, and security requirements of enterprises, government, and service providers. Ricochet Networks, Inc. is a leading portable Wireless Internet Service Provider (WISP) with operational markets in Denver, Colorado and San Diego, California. Additional information about the company can be found at the company's website located at http://www.terabeam.com or by contacting the company by telephone at 413-584-1425 or by email at IR@terabeam.com. Safe Harbor Statement Statements in this press release that are not statements of historical facts are forward-looking statements that involve risks, uncertainties, and assumptions. Terabeam�s actual results may differ materially from the results anticipated in these forward-looking statements. The forward-looking statements involve risks and uncertainties that could contribute to such differences including those relating to and arising from the ongoing uncertainty in the telecommunications industry and larger economy; the intense competition in our industries and resulting impacts on our pricing, gross margins, and general financial performance; time and costs associated with developing and launching new products; uncertainty about market acceptance of products we introduce; potential long sales cycles for new products such that there may be extended periods of time before new products contribute positively to our financial results; decisions we may make to delay or discontinue efforts to develop and introduce certain new products; time, costs, political considerations, typical multitude of constituencies, and other factors involved in evaluating, equipping, installing, and operating municipal networks; difficulties or delays in developing and supplying new products with the contemplated or desired features, performance, compliances, certifications, cost, price, and other characteristics and at the times and in the quantities contemplated or desired; the difficulties in predicting Terabeam�s future financial performance; and the impacts and effects of any other strategic transactions Terabeam may evaluate or consummate. Further information on these and other factors that could affect Terabeam�s actual results is and will be included in filings made by Terabeam from time to time with the Securities and Exchange Commission and in its other public statements. TERABEAM, INC. CONSOLIDATED BALANCE SHEETS (in thousands) � March 31, December 31, 2007� 2006� Assets (unaudited) Current assets: Cash and cash equivalents $7,912� $10,290� Investment securities � available-for-sale 201� 168� Accounts receivable, net 6,814� 5,539� Inventory 9,301� 10,142� Prepaid expenses 1,602� 1,246� Total current assets 25,830� 27,385� � Property and equipment, net 2,563� 2,660� Other Assets: Restricted cash 76� 76� Goodwill 7,922� 7,922� Intangible assets, net 11,012� 11,545� Deposits and prepaid expenses 297� 287� Total other assets 19,307� 19,830� Total assets $47,700� $49,875� Liabilities and Stockholders� Equity Current liabilities: Accounts payable and accrued expenses $13,830� $13,887� Deferred revenue 2,767� 2,198� License agreement payable - current maturities 879� 868� Total current liabilities 17,476� 16,953� License agreement payable, net of current maturities 1,864� 2,088� Total liabilities 19,340� 19,041� Commitments and contingencies Stockholders� Equity -� -� Preferred stock, $0.01 par value; authorized 4,500,000, none issued at March 31, 2006 and December 31, 2005 -� -� Common stock, $0.01 par value, 100,000,000 shares authorized, 21,540,865 issued and outstanding at March 31, 2006 and 21,446,217 issued and outstanding at December 31, 2005 216� 216� Additional paid-in capital 58,454� 57,976� Retained earnings (accumulated deficit) (30,271) (27,285) Treasury stock -� -� Accumulated other comprehensive income: Net unrealized gain (loss) on available-for-sale securities (39) (73) Total stockholders� equity 28,360� 30,834� Total liabilities and stockholders� equity $47,700� $49,875� TERABEAM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended March 31, 2007� 2006� Revenues $17,658� $18,536� Cost of goods sold 9,732� 10,895� Gross profit 7,926� 7,641� Operating expenses: Selling costs 4,745� 4,269� General and administrative 3,409� 3,334� Research and development 2,810� 4,886� Total operating expenses 10,964� 12,489� Operating loss (3,038) (4,848) Other income (expenses): Interest income 44� 88� Interest expense (34) (33) Other income (loss) 66� 331� Total other income (expenses) 76� 386� Loss before income taxes (2,962) (4,462) Benefit (provision) for income taxes (24) (21) Net loss ($2,986) ($4,483) � Weighted average shares - basic and diluted 21,553� 21,462� Loss per share, basic and diluted ($0.14) ($0.21)