Acme Packet Reports Results for Third Quarter of Fiscal Year 2008

Business Wire, Nov 6, 2008

* Company Posts Revenues of $28.4 Million, up 11% Sequentially from Second Quarter of Fiscal Year 2008

* Company Updates Outlook for 2008

BURLINGTON, Mass. -- Acme Packet, Inc. (NASDAQ: APKT), the leader in session border control solutions, today announced results for the three and nine months ended September 30, 2008 and updated its business outlook for the balance of fiscal year 2008.

Results for the Third Quarter of Fiscal Year 2008

Total revenues for the third quarter of fiscal year 2008 were $28.4 million compared to $29.6 million in the same period last year. Net income for the third quarter of fiscal year 2008 was $2.0 million, or $0.03 per share on a diluted basis, compared to $5.5 million, or $0.08 per share on a diluted basis, in the same period last year. Net income on a non-GAAP1 basis for the third quarter of 2008 was $3.4 million, or $0.05 per share on a diluted basis, compared to $6.7 million, or $0.10 per share on a diluted basis, in the same period last year. Non-GAAP net income1 differs from GAAP net income as it excludes stock-based compensation expense, net of tax, of approximately $1.3 million, or $0.02 per share in the third quarter of fiscal year 2008 and approximately $1.2 million, or $0.02 per share in the third quarter of fiscal year 2007. A reconciliation of GAAP to non-GAAP results is included at the end of this press release.

Results for the First Nine Months of Fiscal Year 2008

Total revenues for the first nine months of fiscal year 2008 grew to $85.8 million, an increase of 5% compared to $81.7 million in the same period last year. Net income for the first nine months of fiscal year 2008 was $7.9 million, or $0.12 per share on a diluted basis, compared to $14.4 million, or $0.22 per share on a diluted basis, in the same period last year. Net income on a non-GAAP1 basis for the first nine months of fiscal year 2008 was $11.5 million, or $0.18 per share on a diluted basis, compared to $17.4 million, or $0.26 per share on a diluted basis, in the same period last year. Non-GAAP net income1 differs from GAAP net income as it excludes stock-based compensation expense, net of tax, of approximately $3.6 million, or $0.06 per share in the first nine months of fiscal year 2008 and approximately $3.0 million, or $0.04 per share for the first nine months of fiscal year 2007. A reconciliation of GAAP to non-GAAP results is included at the end of this press release.

Company Updates Business Outlook for Fiscal Year 2008

The Company today provided its current outlook for the three month period ended December 31, 2008 and updated its full year business outlook for fiscal year 2008. The Company's outlook is based on the current indications for its business, which may change at any time.

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Company Announces Update on Common Stock Repurchase Program

The Company previously announced that its Board of Directors has authorized a $55.0 million common stock repurchase program (the "Program"). During the three month period ended September 30, 2008, the Company repurchased approximately 4.0 million shares of its common stock for an aggregate purchase price of $22.6 million. Since announcing the Program in February 2008 and through September 30, 2008, the Company repurchased approximately 4.9 million shares of its common stock for an aggregate purchase price of $29.3 million. Subsequent to September 30, 2008 and through November 5, 2008, the Company repurchased an additional 1.4 million shares for an aggregate purchase price of $6.5 million. In the aggregate, the Company has purchased approximately 6.3 million shares of its common stock for an aggregate purchase price of $35.8 million, with $19.2 million available for repurchase activity under the plan. Under terms of the Program, purchases will continue to be executed periodically as market and business conditions warrant on the open market, in negotiated or block trades, or under a Rule 10b5-1 plan, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The Program does not obligate the Company to repurchase any dollar amount or number of shares of common stock, and the program may be suspended or discontinued at any time. The common stock repurchase program will remain effective through February 28, 2009 unless terminated earlier by the Board of Directors.

Company to Host Live Conference Call and Webcast

The Company's management team will host a live conference call and webcast at 5:00 p.m. eastern time today to discuss the financial results as well as management's outlook for the business. The conference call may be accessed in the United States by dialing (800) 553-5260 and using access code "APKT". The conference call may be accessed outside of the United States by dialing (612) 332-0820 and using access code "APKT". The conference call will be simultaneously webcast on the Company's investor relations website, which can be accessed at www.ir.acmepacket.com. A replay of the conference call will be available approximately two hours after the call by dialing (800) 475-6701 and using access code 963780 or by accessing the webcast replay on the Company's investor relations website.