Paradyne Exceeds Earnings Estimates for Third Quarter

10/20/2003 - Paradyne Networks, Inc. (NASDAQ:PDYN), a leading provider of broadband voice, data and video network access solutions, reported its third quarter 2003 financial results.

Paradyne's pro forma net loss for the third quarter of 2003 was ($2.3 million) or ($0.05) per diluted share, exceeding the First Call consensus estimates of a pro forma net loss of ($0.07) per share. GAAP net loss reported for the third quarter of 2003 was ($2.2 million), also ($0.05) per share.

Total revenues for the third quarter were $20.3 million with broadband revenues representing the major portion of total revenues at $16.3 million or 80 percent. Narrowband revenues were $2 million, and service and royalties accounted for the remaining $2 million. Paradyne's cash position remained strong at $42.7 million at the end of the third quarter.

"We are very pleased with our Q3 results. In particular, we are happy with the market acceptance of our newer products and the ability to grow revenue with less expense," said Sean Belanger, president and CEO of Paradyne.

Highlights for the third quarter include:

  • Paradyne shipped over 18,000 ReachDSLTM and ADSL/RTM endpoints, up 31 percent from Q2 and bringing the total to over 406,000 endpoints shipped worldwide.
  • Paradyne shipped over 11,000 ReachDSL DSLAM Ports, up 38 percent from Q2 and bring the total to over 439,000 shipped worldwide.
  • Paradyne shipped over 32,000 ADSL ports in Q3, up 58 percent from Q2. This increase is a reflection of the continued success of Paradyne's new product strategy.
  • Paradyne shipped over 1,100 DSLAMs in the quarter, bringing the total number of our DSLAMs in the marketplace to over 34,000 representing over 5.1 million ports of capacity in the field.
  • Paradyne began a five-week promotion for its GranDSLAM® 4200IP "pizza box" DSLAM. The promotion offers customers 2 "starter kits," which include a GranDSLAM 4200IP and five free endpoints at very aggressive prices. The GranDSLAM 4200IP, part of Paradyne's video-ready DSLAM product family, is the latest 1U DSLAM from Paradyne.
  • Paradyne participated in many tradeshows in the quarter, including the Broadband World Forum in the UK and Voice on the Net (VON) in Boston, where the triple play solution (voice, video and data) was the highlight.
  • Sprint announced Paradyne's iMarcTM devices are now part of the Sprint Managed CSU/DSU services.
  • Paradyne's GranDSLAM 4200 has been certified by the Rural Utilities Service (RUS) for purchase by the independent telephone operating companies using funds obtained through the Rural Telephone Bank at low interest loans.

Third Quarter Results Conference Call and Webcast
As previously announced, Paradyne will host a conference call on Friday, October 17, 2003 at 10:00 a.m. (ET) to discuss third quarter 2003 results and its outlook for the fourth quarter of 2003. The call will be broadcast live on the Internet for investors and the general public. This listen-only Webcast can be accessed through the Company section of the Paradyne Web site. Participants should go to the Web site at least ten minutes before this event to download and install any necessary audio software. Or, participants may dial into the call at 416-695-6120, and the pin number is T453080P.

About Paradyne
Paradyne is a leading developer of carrier-class, high-speed network access solutions for broadband voice, data and video. A recognized market leader in digital subscriber line (DSL), service level management (SLM), and Broadband Voice and Media Gateway solutions, Paradyne markets its award-winning GranDSLAM and BitStormTM DSL systems, ReachDSL and EtherLoop® products, Jetstream® Media Gateway systems and iMarc Service Level Management systems to service providers and business customers worldwide. More information may be obtained by visiting www.paradyne.com or by calling +1-727-530-8623.

Information about Forward-Looking Statements:
This press release contains forward-looking statements that involve a number of risks and uncertainties. These forward-looking statements are made pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995 and are made based on management's current expectations and beliefs as well as on assumptions made by, and information currently available to, management. Among the factors that could cause actual future events to differ materially include: the court's decision on preliminary approval of the settlement; the number of stockholders who elect to opt out of the settlement; the objections that are filed against the settlement; and the final approval by the court and any appeal from the judgment.

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