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Acme Packet 2Q07 update

• Revenues $27 million, up 41% year-over-year and 8% sequentially. Net income $4.6 million
• Ended the quarter with over $126 million in cash and cash equivalents
• 10% and over customers: Alcatel Lucent and Nokia Siemens Networks who collectively represented 27% of the company’s quarterly total revenue

• Geographical revenue split: 55% North America, rest international
• Added over 30 new customers in the quarter; announced 9; total customers at the end of 2Q07: 420 service providers in 81 countries.
• Gross margins: 80%
• Hired 60 new people in the first half of the year
• Seeing demand from EMEA incumbents; In North America, Cable has brought good business, but enterprise starting be become the main driver there
• The number of customers that have purchased at least 100 SBCs from Acme Packet has grown from 1 at the end of 2005 to 6 at the end of Q2 2007

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