Investor Relations

Second Quarter 2008 Results

Second quarter financial highlights

Revenues of $40.1 million down over prior quarter due to events with our largest Latin American customer who made a request for unacceptably aggressive price reductions late in the negotiations over a multi-million dollar expansion
Gross margin at 29.0%
Operating expenses at $91.7 million including goodwill impairment of $70.4 million and lease liability accrual for excess space of $3.3M
Non-GAAP Proforma EBITDA loss of $5.2 million
Cash balance at $50.1 million
Cash balance net of debt obligations at $15.8 million

Press release

Zhone Technologies Reports Second Quarter 2008 Financial Results

Earnings Results Conference

Mory Ejabat, Chairman and CEO, and Kirk Misaka, CFO, presented the results in a simultaneous Audio Webcast and Telephone Conference on:
Tuesday, July 22, 2008
2:00 PM PDT / 5:00 PM EDT

Audio Webcast

Click here to access to the webcast

Conference Call-in Number

Replay: +1 (888) 286-8010 (US); +1 (617) 801-6888 (International)
Passcode 66470411

Financial Statements

Form 10-Q for June 30, 2008

To supplement Zhone's consolidated financial statements presented in accordance with GAAP, Zhone uses pro forma EBITDA, a non-GAAP measure Zhone believes is appropriate to enhance an overall understanding of Zhone's past financial performance and prospects for the future. The presentation of this additional information is not meant to be considered in isolation or as a substitute for measures of financial performance prepared in accordance with GAAP. A reconciliation between net loss calculated on a GAAP basis and pro forma EBITDA on a non-GAAP basis is provided in a table immediately following the Unaudited Condensed Consolidated Statements of Operations included in the press release which can be accessed from the link above.