Hercules Announces One of Its Portfolio Companies, Occam Networks Inc., Reported Solid Q4 and 2005 Financial Results
18 February 2006
Hercules Technology Growth Capital, Inc. (Nasdaq: HTGC), a leading debt and equity growth capital provider to technology and life science companies, today announced that one of its portfolio companies, Occam Networks Inc. (OTC Bulletin Board: OCCM), a supplier of innovative Ethernet and IP-based loop carrier equipment to telecommunications service providers worldwide, reported financial results for the fourth quarter and year ended Dec. 31, 2005.
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Occam Networks' revenues for the fourth quarter of 2005 were $12.9 million, representing a sixth consecutive quarter of record revenues and the company's first-ever profitable quarter. The fourth quarter revenues were up 99 percent over the fourth quarter of 2004, and up 21 percent sequentially over the third quarter of 2005. Revenues for the year ended Dec. 31, 2005 were $39.2 million, more than double the annual revenues for 2004. During the fourth quarter, gross margins also improved substantially as a result of supply chain improvements and product cost reductions. The gross margins also included a one-time benefit of $482,000, due to the reversal of an accrual for outstanding purchase commitments. Excluding this benefit, the company's operating income remained positive and net income was near breakeven.
In addition to reporting its first profitable quarter, Occam also reported the following company highlights for the year:
-- Signed strategic partnership agreements with Tellabs and Tekelec, to
better position the company to serve larger ILECs and the RBOCs
-- Received an equity investment from Tellabs
-- Announced Gigabit Ethernet Fiber to the Premise capability and a rich
set of new software features for the BLC 6000 System
-- Introduced the industry's leading Emergency Stand Alone (ESA) feature
on a loop carrier
-- Posted an 80 percent increase in new customers from the previous year
-- Signed an additional three of the nation's top 25 IOCs as new
customers
-- Acquired its first Canadian customers
-- Expanded product reach into 11 new states
-- Added several new strategic marketing partners, including Broadsoft,
Pacific Star Communications, and Nexicom Systems
About Hercules Technology Growth Capital:
Founded in December 2003, Hercules Technology Growth Capital, Inc. is a NASDAQ traded specialty finance company providing debt and equity growth capital to technology-related companies at all stages of development. The company primarily finances privately-held companies backed by leading venture capital and private equity firms and also may finance certain publicly-traded companies. Hercules focuses its investments in companies active in technology and technology-related industries such as computer software and hardware, networking systems, semiconductors, semiconductor capital equipment, information technology infrastructure, Internet consumer and business services, telecommunications, and life sciences. The company's investments are originated through its principal office located in Silicon Valley, as well as additional offices in the Boston, Boulder and Chicago areas. Providing capital to publicly traded or privately held companies backed by leading venture capital and private equity firms involves a high degree of credit risk and may result in potential losses of capital.
For more information, please visit http://www.herculestech.com . Companies interested in learning more about financing opportunities should contact info@herculestech.com or call 650-289-3060.
About Occam Networks Inc.
Occam Networks Inc. develops and markets innovative Broadband Loop Carrier networking equipment that enable telephone companies to deliver voice, data and video services. Based on Ethernet and Internet Protocol (IP) technologies, Occam's equipment allows telecommunications service providers to profitably deliver traditional phone services, as well as advanced voice-over-IP, residential and business broadband, and digital television services through a single, all-packet access network. Occam is headquartered in Santa Barbara, Calif. Additional information can be found at http://www.occamnetworks.com.
Forward-Looking Statements:
The statements contained in this release that are not purely historical are forward-looking statements, which involve risk and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. These statements may be identified by their use of forward-looking terminology such as "believes," "expects," "may," "should," "would," "will," "intends," "plans," "estimates," "anticipates" and similar words, and include, but are not limited to, statements regarding the expectations, intentions or strategies of Hercules Technology Growth Capital, Inc. For these statements, Hercules claims the protection of the safe harbor for forward-looking statements provisions contained in the Private Securities Litigation Reform Act of 1995. You should be aware that Hercules' actual results could differ materially from those contained in the forward-looking statements due to a number of risks and uncertainties affecting its business. Factors that may cause actual results to differ from forward-looking statements include Hercules' limited operating history as a business development company, the extent to which Hercules incurs debt to fund its investments, fluctuations in interest rates, the concentration of Hercules' investments in a limited number of emerging-growth or expansion stage technology-related companies, the illiquid nature of the securities Hercules' holds, the highly competitive market for investment opportunities in which Hercules operates and others discussed in Hercules' filings with the Securities and Exchange Commission. The forward-looking statements contained in this release are made as of the date hereof, and Hercules assumes no obligation to update the forward-looking statements for subsequent events.
Source: prnewswire
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