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8 December 2006


Optium reports record revenues

Optium Corp of Chalfont, PA, USA, a supplier of optical transceivers for telecom and cable TV network systems, has reported record revenues of $30m for Q1 fiscal 2007 (ended October 28, 2006). This represents an increase of 31% over the prior quarter and 114% year-over-year.

Net income for Q1/2007 was $2.8m ($0.13 per diluted share), in accordance with U.S. GAAP, compared to a GAAP net income of $1.7m ($0.08 per diluted share) in the prior quarter, and GAAP net income of $377,000 ($0.02 per diluted share) year-over-year.

Q1/2007 non-GAAP net income was $3.2m ($0.15 per diluted share), which excludes pre-tax charges of $192,000 associated with stock-based compensation and $223,000 in duplicate facility costs related to the planned relocation of the company's U.S. operations to a new facility in early 2007. Non-GAAP net income for the prior quarter was $1.8m ($0.09 per diluted share).

On November 1, 2006, Optium announced the completion of its initial public offering of 5.2m shares of common stock at a price to the public of $17.50 per share as well as the sale of an additional 780,000 shares to cover underwriter over-allotments. Its common stock, quoted on the Nasdaq Global Market, began trading on October 27, 2006. Cash proceeds to the company, net of underwriter commissions but before related offering expenses, totalled approximately $97m. All preferred stock outstanding at the end of the first quarter was converted to common stock upon the completion of the initial public offering.

"We are pleased to deliver record results in our first quarter reporting as a public company," said Eitan Gertel, chairman and CEO of Optium. "Our strong overall performance reflects growth in all major product areas and the efficiency of our unique business model. During the quarter, we continued to enhance our broad offering of products, especially in the area of 10G tunable transceivers and ROADMs, further strengthening our growth prospects for fiscal 2007."

Optium says it expects Q2/2007 revenues of $32m to $34m, with GAAP earnings expected to be $0.12 to $0.14 per diluted share. Excluding expected pre-tax stock-based compensation charges of approximately $300,000 and duplicate facility costs of approximately $250,000, non-GAAP earnings for the Q2 are expected to be $0.14 to $0.16 per diluted share. Q2 weighted average diluted shares outstanding are expected to be approximately 26.7m, primarily reflecting additional shares outstanding as a result of the IPO.