Symmetricom Reports Fiscal First Quarter 2009 Financial Results

Symmetricom, Inc. (NASDAQ: SYMM), a worldwide leader in precise time and frequency technologies that accelerate the deployment, enable the management and assure the performance of next generation networks, today reported financial results for its first fiscal quarter ended September 28, 2008.

Revenue for the first quarter of fiscal 2009 was $55.9 million, an increase of 10.2% from $50.7 million in the first quarter of fiscal 2008. Symmetricom earned $2.6 million, or $0.06 per share from continuing operations on a fully diluted basis, compared with a net loss from continuing operations of $0.3 million, or $0.01 per share on a fully diluted basis, in the first quarter of fiscal 2008.

Non-GAAP net income in the first quarter was $4.5 million, or $0.10 per share on a fully diluted basis, compared with $1.8 million, or $0.04 per share on a fully diluted basis, in the same period of the prior year. A reconciliation of GAAP and non-GAAP results is provided at the end of this press release.

Cash and short term investments totaled $106.4 million as of September 28, 2008, a decrease of $57.9 million from June 29, 2008. During the first quarter, the company used $62.5 million to repurchase a portion of Symmetricom’s outstanding convertible debentures and $1.8 million for stock buybacks. Net cash flow from operating activities was $8.4 million and property, plant and equipment purchases were $1.1 million, resulting in free cash flow of $7.3 million.

Business Segment Results

Telecom Solutions Division revenue in the quarter was $39.0 million, up 27.9% from $30.5 million in the same period of the prior year. Growth in Telecom Solutions Division revenue was primarily driven by shipments of TimeCreator™, our new precise timing product for DOCSIS 3.0 broadband cable networks. Timing, Test & Measurement Division revenue in the quarter was $16.9 million, down 16.5% from $20.2 million in the same period of the prior year.

"Strong shipments of our new cable product made a significant contribution to overall revenue growth and operating profit in the first quarter,” said Thomas Steipp, president and CEO. "I credit our strong financial performance to the growing diversification of our product portfolio and markets we serve. On the commercial side, cable has become a meaningful revenue contributor, while in our government business, strong orders show broad-based and relatively stable Government spending on our products.”

"In addition to an expanding product portfolio and customer base, our solid balance sheet provides flexibility and allows us to capitalize on a wider range of opportunities, such as the recently announced increase to our stock repurchase program,” said Justin Spencer, chief financial officer.

Second Quarter and Fiscal 2009 Guidance

Symmetricom reaffirms its previous guidance for fiscal year 2009 as follows:

• Net revenues in the range of $230 million to $240 million
• GAAP earnings in the range of $0.20 to $0.26 per share
• Non-GAAP earnings in the range of $0.35 to $0.41 per share

For the second fiscal quarter, Symmetricom expects:

• Net revenues in the range of $50 million to $57 million
• GAAP results ranging from a net loss of $(0.01) per share to net earnings of $0.04 per share
• Non-GAAP earnings in the range of $0.03 to $0.08 per share

A reconciliation of GAAP and non-GAAP guidance is provided at the end of this press release.

Investor Conference Call

As previously announced, management will hold a conference call to discuss these results today, at 1:30 p.m. Pacific Time. Investors are invited to join the conference call by dialing 1-210-234-0003 and referencing "Symmetricom.” A live webcast will also be available on the investor relations section of the company’s website at www.symmetricom.com. An audio replay will be available for one week and can be accessed by dialing 1-402-220-6422.

Analyst and Investor Day

Symmetricom will host an Analyst and Investor Day on Thursday, November 13, 2008 from 9:00 am to 1:30 pm Eastern Standard Time at the Grand Hyatt Hotel in New York City. Tom Steipp, president and chief executive officer, Justin Spencer, chief financial officer, and other senior executives will present information about the company. Mr. Nicholas Hamilton-Piercy, the former Chief Technology Officer of Rogers Communications, Inc., will join Symmetricom management as a special guest speaker.

The meeting will be webcast simultaneously and a replay will be available for 30 days. To access the webcast, please go to http://www.wsw.com/webcast/symm/.

About Symmetricom, Inc.

As a worldwide leader in precise time and frequency products and services, Symmetricom provides "Perfect Timing” to customers around the world. Since 1985, the company’s solutions have helped define the world’s time and frequency standards, delivering precision, reliability and efficiency to wireline and wireless networks, instrumentation and testing applications and network time management. Deployed in more than 90 countries, the company’s synchronization solutions include primary reference sources, building integrated timing supplies (BITS), GPS timing receivers, time and frequency distribution systems, network time servers and ruggedized oscillators. Symmetricom also incorporates technologies including Universal Timing Interface (UTI), Network Time Protocol (NTP), Precision Time Protocol (IEEE 1588), and others supporting the world’s migration to Next-Generation-Networks (NGN). Symmetricom is based in San Jose, Calif., with offices worldwide. For more information, visit www.symmetricom.com.

Non-GAAP Information

Certain non-GAAP financial information is included in this press release. In the Reconciliation of GAAP to Non-GAAP Results, Symmetricom excludes certain items related to non-cash compensation, amortization of acquired intangibles, impairment of goodwill and other intangibles, integration and restructuring charges, investment gains and losses, and unusual and non-recurring items. Symmetricom believes that excluding such items provides investors and management with a representation of the company’s core operating performance and with information useful in assessing our prospects for the future and underlying trends in Symmetricom’s operating performance. Management uses such non-GAAP information to evaluate financial results and to establish operational goals. Non-GAAP information is not determined using GAAP and should not be considered superior to or as a substitute for data prepared in accordance with GAAP. A reconciliation of the non-GAAP results to the GAAP results is provided in the financial schedules portion of this press release.

Free Cash Flow is defined as net cash provided by operating activities minus purchases of property, plant and equipment. We believe this metric provides useful information to our investors, analysts, and management about the level of cash generated by normal business operations, including the use of cash for the purchase of property, plant and equipment. Management also views it as a measure of cash available to pay debt and return cash to stockholders. Free Cash Flow is not a GAAP financial measure and should not be considered superior to or a substitute for operating cash flow or other cash flow data prepared in accordance with GAAP.

Safe Harbor

This press release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the safe harbor created by those sections. These forward-looking statements include statements concerning second quarter and fiscal 2009 guidance and our expectations of operating performance in fiscal 2009, as well as the information regarding the usefulness of the non-GAAP financial information. Symmetricom's actual results could differ materially from those projected or suggested in these forward-looking statements. Factors that could cause future actual results to differ materially from the results projected in or suggested by such forward-looking statements include: reduced rates of demand for telecommunication products, cable products or test and measurement products, our customers’ ability and need to upgrade existing equipment, our ability to reduce manufacturing and operating costs, timing of orders, cancellation or delay of customer orders, loss of customers, customer acceptance of new products, recessionary pressures, geopolitical risks such as terrorist acts and the risk factors listed from time to time in Symmetricom's reports filed with the Securities and Exchange Commission, including the annual report on Form 10-K for the fiscal year ended June 29, 2008 and subsequent Form 10-Q’s and Form 8-K’s.

Note: Financial schedules attached.

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