Somera Communications Announces Preliminary Second Quarter Financial Results

Somera Communications Announces Preliminary Second Quarter
Financial Results 


DALLAS, July 7  /PRNewswire-FirstCall/ -- Somera Communications (NASDAQ:SMRA),
a global provider of telecommunications asset management and recovery services,
today announced preliminary financial results for the quarter ended June 30,
2005.

Somera expects to report total revenues in the range of $18.0 million to $19.0
million.  Somera expects to report a net loss per share for the second quarter
in the range of $(0.15) and $(0.17).  The Company's net loss per share will be
negatively impacted by $2.8 million to $3.3 million in charges related to a
write-down of goodwill from an acquisition that closed in 2000, the recognition
of outstanding sales taxes from 2002 and 2003, and expenses associated with an
acquisition the Company has decided against pursuing. Excluding these charges,
net loss per share is expected to range between $(0.09) and $(0.11). 
Consistent with the Company's expectations for the quarter, gross margin is
expected to be in the low- to mid-30% range.

David Heard, CEO of Somera, commented on the preliminary results, "During the
first half of 2005, we made the decision to restructure our sales and supply
organizations -- including significant additions to our management team -- in
order to more effectively capitalize on growth opportunities in both the
traditional equipment brokerage business and our new asset management business.
 Unfortunately, these reorganization efforts left us temporarily unable to
capitalize on a number of short-term transactional brokerage opportunities due
to supply shortages and incomplete market coverage in our sales force. 
However, we believe putting the right teams in place and building a stronger
inventory position should lead to improved performance in the brokerage
business going forward.  We expect to provide additional guidance when we
report our second quarter financial results.

"We believe the development and adoption of our Lifecycle Management Services
business remains on track, with revenues increasing, the pipeline building, and
key prospects moving to more advanced stages of the sales cycle. We now have
three significant U.S. carriers entering the initial phases of our RecoveryPLUS
program.  As these programs ramp in scale, and we close deals with new
carriers, we expect to see increasing revenues from the services business
throughout the remainder of 2005.

"While we expect to make progress in positioning the Company for improved
performance, we now believe the temporary effects of our reorganization efforts
will defer our return to profitability until 2006," said Mr. Heard.

Somera expects to report its second quarter financial results after the market
closes on August 4, 2005.  A conference call will be held on the same day at
5:00 p.m. Eastern time / 2:00 p.m. Pacific time.

Non-GAAP Financial Measures

This press release contains pro forma net loss per share results that are not
in accordance with GAAP because they exclude identified non-cash charges. The
estimated amount of the expected excluded charges is stated in this release so
that pro forma net loss per share results can be reconciled to GAAP results. 
The pro forma net loss per share results should not be considered as a
substitute for, or superior to, measures of financial performance prepared in
accordance with GAAP, and may be different from non-GAAP financial measures
used by other companies.  Somera management uses this pro forma measure in
evaluating the potential impact of certain operating decisions on projected
financial results, in comparing the Company's historical operating results and
in comparing to competitors' operating results.  Somera includes this pro forma
measure in this press release because it believes this measure enhances
comparability of Somera's results of operations to those of competitors', to
operating results Somera historically has reported and to financial models and
expectations of securities analysts.

About Somera

Somera launched its family of Lifecycle Management Services in 2004 in response
to an industry-wide need for telecom asset management to optimize return on
assets.  Somera's product offerings enable service providers to generate
greater value from legacy assets in the form of lower operating costs, longer
product life, higher productivity, and real measurable capital savings.  With
Somera LifecyclePLUS, customers can outsource elements of network operations,
logistics, and technical service.  Somera RecoveryPLUS(TM) is a program
approach to deliver documented savings and expense relief by recovering hidden
value in current underutilized assets and inventories. Somera RepairPLUS
provides comprehensive support for wireless, wireline, and data products at
significant savings and reduced cycle times.  These services are in addition to
Somera's traditional Brokerage business that provides immediate availability of
quality, warranted new and refurbished equipment at savings of 25 to 60%. 
Founded in 1995, Somera has developed an impressive base of over 1,100
customers worldwide, including the industry leaders from each segment of the
telecommunications market.  Visit Somera on the web at http://www.somera.com/.

This news release contains forward-looking statements as that term is defined
in Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, including statements about
Somera's expected financial results for the second quarter of 2005, its
expected return to profitability on a GAAP basis in 2006, the future
performance of its equipment brokerage business and lifecycle management
services businesses, Somera's ability to capitalize on business opportunities
in light of its reorganization efforts, and Somera's ability to gain new
customers, expand its programs with existing customers in future periods and
make progress in positioning itself for improved performance.  Actual results
for the second quarter of 2005 may differ materially from those estimated or
projected in this release due to factors that include risks associated with
final review of the financial results and preparation of quarterly financial
statements, which may include unexpected accounting adjustments.  Actual
results in future periods are subject to risks and uncertainties that could
cause actual results to differ materially from those projected in the
forward-looking statements contained in this release, including, but not
limited to, general economic conditions particularly affecting the
telecommunications industry; capital equipment spending levels in the
telecommunications industry, including the risk of continued customer spending
delays associated with carrier consolidation; the impact of competition in the
market for supplying equipment and equipment lifecycle management services to
telecommunications operators; the risk of potential shortage of product supply;
and Somera's ability to build its lifecycle management services capabilities;
and other factors fully described in the company's reports to the Securities
and Exchange Commission (SEC), including but not limited to, the Annual Report
on Form 10-K for the fiscal year ended December, 31, 2004, and Quarterly
Reports on Form 10-Q.  The company does not undertake to update any
forward-looking statements that may be made by or on behalf of the company. 
Copies of Somera's SEC filings may be obtained by contacting Financial
Relations Board at 617-520-7064 or by visiting the Investor section of Somera's
web site at http://www.somera.com/. 

DATASOURCE: Somera Communications



CONTACT:  Investor Relations, Somera Communications, [phone]



Web site:  http://www.somera.com/ 

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