Symmetricom Reports Fourth Quarter and FY2007 Financial Results.

SAN JOSE, Calif. -- Symmetricom, Inc. (NASDAQ:SYMM), a worldwide leader in precise time and frequency products and services, today reported financial results for its fourth quarter and fiscal year ended June 30, 2007.

Fiscal fourth quarter revenue was $57.4 million, a 22.8 percent increase over prior year quarterly revenue of $46.8 million. For the fiscal year ended June 30, 2007, revenue was $208.4 million, an 18.3 percent increase over $176.1 million for fiscal year 2006.

Net earnings from continuing operations in the fourth quarter were $1.4 million or $0.03 per share on a fully diluted basis, compared with net earnings from continuing operations of $2.0 million or $0.04 per share on a fully diluted basis in the prior year period. In fiscal 2007, net earnings from continuing operations were $5.9 million or $0.13 per share on a fully diluted basis, compared with a net loss from continuing operations of $46,000 for the prior fiscal year. Net earnings for fiscal year 2007 include a tax provision of $3.4 million, resulting from the liquidation of QoSmetrics S.A. and QoSmetrics, Inc., as previously disclosed. Net earnings for fiscal year 2006 included a $7.0 million or $0.15 per share charge for the impairment of $6.2 million in goodwill and $0.8 million in other intangibles principally related to the company's wireless business segment purchased in connection with the Datum acquisition in October 2002; this was determined in accordance with SFAS 142 for goodwill and SFAS 144 for other intangibles.

Non-GAAP net earnings from continuing operations in the fourth quarter, which excludes certain items related to non-cash compensation, amortization of acquired intangibles, integration and restructuring charges, and unusual and non-recurring items, were $4.0 million or $0.09 per share on a fully diluted basis compared with $3.8 million, or $0.08 per share on a fully diluted basis for the prior year period. Non-GAAP net earnings from continuing operations for fiscal 2007 of $17.5 million or $0.38 per share on a fully diluted basis are up from prior year net earnings from continuing operations of $15.2 million or $0.32 per share on a fully diluted basis.

Telecom Solutions Division (TSD) revenue in the quarter was $36.1 million, an increase of $3.2 million or 9.9 percent over prior year period revenue of $32.9 million. TSD revenue in fiscal 2007 was $135.2 million, up $18.1 million or 15.5 percent from prior year revenue of $117.1 million. The growth in TSD revenues was principally attributable to strong sales of next generation wireline frequency and timing solutions to replace legacy equipment in U.S. central offices.

Timing, Test & Measurement Division (TT&M) revenue in the quarter was $21.2 million, an increase of $7.3 million or 52.5 percent over prior year period revenue of $13.9 million. TT&M revenue for fiscal 2007 was $72.7 million, up $13.6 million or 23.1 percent from prior year revenue of $59.0 million. TT&M revenue growth was supported by strong revenue in the secure mobile communications area as well as the acquisition of Timing Solutions Corporation, which was completed on Oct. 2, 2006.

Revenue for our new Quality of Experience Assurance Division (QAD) was $0.1 million for the quarter and $0.5 million for the fiscal year.

"Fiscal 2007 was a banner year for Symmetricom," said Tom Steipp, president and CEO of Symmetricom. "We broke through the $200 million revenue level, supported by revenue from equipment upgrades in our Telecom Solutions business and strong sales of secure communications equipment in our Timing Test and Measurement business."

"Looking ahead, we expect several large upgrade customers to slow ordering as they focus on installing equipment they have just purchased. As a result, we believe that the second half of fiscal 2008 will be stronger than the first half," continued Steipp.

Fiscal Year 2007 Highlights

* Grew revenue by 18 percent

* Net earnings improved to $6.1 million from $0.8 million in fiscal 2006

* Initiated wireline upgrades at AT&T and Verizon, which both became greater than 10 percent customers

* Introduced CableLabs[R] qualified DTI server, which is now in trials and vendor testing in the cable market, a new opportunity for the company

* Acquired Timing Solutions Corporation, which adds specialized products and knowledge to the TT&M product portfolio

* Acquired QoSmetrics, SA and intellectual property from Genista Corporation to form the nucleus of our new QAD business

Outlook for Fiscal Year 2008

Symmetricom expects fiscal year 2008 revenue to grow to a range of $210.0 million to $220.0 million. The company expects GAAP earnings to be between $0.05 and $0.15 per share, on a fully diluted basis. Non-GAAP earnings are expected to be between $0.24 per share and $0.34 per share, on a fully diluted basis.

Symmetricom expects fiscal year 2008 first quarter revenue to be between $48.0 million and $53.0 million. The company expects GAAP earnings to range from a loss of $0.05 per share to breakeven, on a fully diluted basis. Non-GAAP earnings are expected to be between $0.01 per share and $0.06 per share, on a fully diluted basis. We will no longer provide quarterly guidance after this earnings release.

Our annual earnings guidance reflects increased operating expenses to support our emerging QAD business. We are investing in this organization during fiscal 2008 to develop this business to its fullest potential. We expect this investment to dilute earnings for fiscal year 2008 by approximately $0.22 per share on a GAAP basis and $0.16 per share on a Non-GAAP basis.

These statements are only effective as of the date of this press release and Symmetricom undertakes no duty to publicly revise or update these forward-looking statements, whether as a result of new information, future developments or otherwise.

Stock Repurchase Program

On August 8, 2007, the Board of Directors authorized management to repurchase up to approximately 2.9 million shares of Symmetricom common stock, adding 2.0 million shares to a previously authorized program. Since July 1, 2004, we have repurchased approximately 1.9 million shares of Symmetricom common stock.

Investor Conference Call

As previously announced, management will hold a conference call to discuss these results today, Aug. 9, at 1:30 p.m. Pacific Time. Those wishing to join should dial 1-210-234-0001 and reference the passcode "Symmetricom". A live webcast of the conference call will also be available via the company's website at www.symmetricom.com. A replay of the call will be available until Aug. 17 at 11:59 p.m. Pacific Time. To access the replay, please dial 1-402-220-9696.

About Symmetricom, Inc.

As a worldwide leader in precise time and frequency products and services, Symmetricom provides "Perfect Timing" to customers around the world. Since 1985, the company's solutions have helped define the world's time and frequency standards, delivering precision, reliability and efficiency to wireline and wireless networks, instrumentation and testing applications and network time management. Deployed in more than 90 countries, the company's synchronization solutions include primary reference sources, building integrated timing supplies (BITS), GPS timing receivers, time and frequency distribution systems, network time servers and ruggedized oscillators. Symmetricom also incorporates technologies including Universal Timing Interface (UTI), Network Time Protocol (NTP), Precision Time Protocol (IEEE 1588), and others supporting the world's migration to Next-Generation-Networks (NGN). Symmetricom is based in San Jose, Calif., with offices worldwide. For more information, visit www.symmetricom.com.

Non-GAAP Information

Certain non-GAAP financial information is included in this press release. In the non-GAAP Statements of Operations, Symmetricom excludes certain items related to non-cash compensation, amortization of acquired intangibles, impairment of goodwill and other intangibles, integration and restructuring charges and unusual and non-recurring items. Symmetricom believes that excluding such items provides investors and management with a representation of the company's core operating performance and with information useful in assessing our prospects for the future and underlying trends in Symmetricom's operating performance. Management uses such non-GAAP information to evaluate financial results and to establish operational goals. Non-GAAP information is not determined using GAAP and should not be considered superior to or as a substitute for data prepared in accordance with GAAP. A reconciliation of the non-GAAP results to the GAAP results is provided in the "Consolidated Statements of Operations (non-GAAP)" schedule provided in the press release.

Safe Harbor 

This press release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the safe harbor created by those sections. These forward-looking statements include statements concerning estimates of future revenue and earnings, increased spending levels to support our new QAD business, progress made in developing product for the cable industry, as well as the information regarding the usefulness of the non-GAAP financial information. Symmetricom's actual results could differ materially from those projected or suggested in these forward-looking statements. Factors that could cause future actual results to differ materially from the results projected in or suggested by such forward-looking statements include: reduced rates of demand for telecommunication products, cable products or test and measurement products, our customers' ability and need to upgrade existing equipment, our ability to attract cable service providers as new customers for our products, our ability to develop, market and sell products into the Quality of Experience area for the emerging IPTV market, our ability to negotiate contracts with our customers, our ability to maintain gross margins, timing of orders, cancellation or delay of customer orders, loss of customers, difficulties in manufacturing products to specification or customer volume requirements, challenges in integrating acquired businesses, customer acceptance of new products, geopolitical risks such as terrorist acts and the risk factors listed from time to time in Symmetricom's reports filed with the Securities and Exchange Commission, including the report on Form 10-K for the year ended June 30, 2006, subsequent Form 10-Q's and Form 8K's.

Note: Financial schedules attached.

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