SOURCE: Procera Networks

April 16, 2007 06:58 ET

Procera Networks, Inc. Announces Fourth Quarter and Fiscal Year 2006 Financial Results

PacketLogic's Worldwide Sales Drives Strong Fourth Quarter Results Along With Continuing Momentum Into the First Quarter of 2007

LOS GATOS, CA -- (MARKET WIRE) -- April 16, 2007 -- Procera® Networks, Inc. ("Procera") (OTCBB: PRNW), a pioneering developer of intelligent network traffic and service management infrastructure equipment, today announced the results of its 10-KSB for the year ending December 31, 2006.

Procera's growth in the second half of 2006 was directly related to the acquisition by Procera of Netintact AB ("Netintact"), a Swedish corporation. Effective August 18, 2006, Netintact became a wholly owned subsidiary of Procera. This event changed the core of Procera's business. As a result of the acquisition, Netintact's product family known as PacketLogic now forms the foundation of Procera's product offering. Procera markets and sells to broadband service providers (BSPs), including ISPs, Telcos, wireless ISPs (WISPs), FTTx (Fiber-to-the-Home, Fiber-to-the-Premise), cable companies, colleges and universities worldwide.

"Our strong financial growth for the fourth quarter and second half of 2006 was a direct result of the acquisition of Netintact AB by Procera Networks," said Doug Glader, CEO, Procera Networks. "Our fourth quarter ending December 31, 2006 showed a 66% growth over the third quarter of 2006 to over $1.41 million, as sales of PacketLogic in the United States gained traction. The acceptance of the PacketLogic products worldwide has been validated by more than 300 customers in Procera's core markets, and our sales momentum has continued into the first quarter of 2007. Procera continues to execute on a plan targeting broadband service providers around the world who are struggling to manage and control the spiraling growth in Internet bandwidth usage driven by video-based websites and applications like YouTube™, BitTorrent™ and Slingbox™. We also continue to find a significant interest in the United States for providing superior traffic management functionality while meeting the technical assistance requirements of the Communications Assistance for Law Enforcement Act (CALEA) which all Broadband and VoIP Service Providers must have in place by May 14, 2007. Solving CALEA compliance, along with managing the explosion of bandwidth usage due to end user requirements for triple play services (i.e. video, voice and data) over the Internet, has continued to drive growing demand for PacketLogic's advanced traffic and service management systems. As we launch new products, continue our worldwide expansion, and target new OEM opportunities, we are extremely excited about our growth prospects for 2007, and beyond."

Procera announced revenues for its fiscal year 2006 of $1.91 million, of which over $1.67 million (87%) was produced after Procera acquired Netintact, compared to revenues of $254,809 for its fiscal year 2005. This represents over a 600% increase in revenues year over year. In addition, Procera had a gross profit of $1.28 million for its fiscal year 2006 versus a gross loss of ($52,990) for its fiscal year 2005. In addition, Procera had other key financial highlights ending December 31, 2006, including cash reserves in excess of $5 million and strong gross profit margins.

Procera's executive team will host a state of the business conference call in May after the release of its financial results for the first quarter of 2007. Information regarding the conference call will be released via press release.

About Procera Networks

Founded in 2002, Procera Networks, Inc. (OTCBB: PRNW) is a global provider of intelligent network traffic identification, control and service management infrastructure equipment. Procera's core product suite, the PacketLogic™ line of appliances, provides the most accurate application identification available today by using the industry leading connection identification engine DRDL™ (Datastream Recognition Definition Language). PacketLogic is deployed at more than 300 broadband service providers (xSPs), Telcos, colleges and universities worldwide. For more information, visit

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in this press release, the words "plan," "confident that," "believe," "scheduled," "expect," or "intend to," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, the ability of Procera to commercialize the applicable technology and introduce products and the acceptance of those products by the market, the ability of resellers to sell the Procera products, market conditions, the general acceptance of the Company's products and technologies, competitive factors, timing, and other risks described in the Company's reports and filings with the SEC (Securities and Exchange Commission) from time to time.

Contact Information

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    Procera Networks, Inc.
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