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PCOM...
P-Com Reports Third Quarter Results
PR Newswire - October 30, 2003 15:36
- P-Com raises $11 million in capital - Restructuring essentially completed - Third quarter sales increase to $5.6 million - Encore has first $1 million quarter


CAMPBELL, Calif., Oct 30, 2003 /PRNewswire-FirstCall via COMTEX/ -- P-Com, Inc. (OTC Bulletin Board: PCOM), a worldwide provider of wireless telecommunications equipment, reported today that net sales increased to $5.6 million for the quarter ended September 30, 2003, compared to $5.0 million for the second quarter of 2003 and $6.4 million for the third quarter in 2002.

Operating loss for the third quarter was $2.4 million, compared to $6.0 million in the second quarter of 2003 and $5.8 million in the third quarter of 2002.

Due to non-cash, non-recurring items, P-Com reported a net profit for the third quarter of 2003 of $9.4 million, or $0.22 per share, compared to a net loss of $6 million in the second quarter of 2003, and a net loss of $9 million in the third quarter of 2002.

Operating expenses, excluding restructuring charges of $350,000 for the quarter, were $3.2 million, compared to $4.1 million for the second quarter of 2003, and $6.6 million for the same period in 2002. Operating expenses, including restructuring charges, amounted to $3.6 million for the quarterly period ended September 30, 2003, compared to $6.9 million for the quarterly period ended June 30, 2003, and $6.6 million for the quarter ended September 30, 2002.

Gross profit margins were 20% in the quarter, which is 3% higher than the second quarter of 2003. The higher gross margins in the third quarter were due to non-recurrence of certain inventory related charges incurred in the second quarter.

"P-Com made substantial improvements to its balance sheet in the third quarter and has now essentially completed its restructuring," said P-Com CEO Sam Smookler. "P-Com is now better positioned to face the ongoing challenges in the marketplace and re-emerge as a leading provider of wireless telecom equipment."

Conference Call

Management will discuss P-Com's results and hold a question-and-answer session for investors today, Oct. 30, 2003, at 2:00 p.m. Pacific / 5:00 p.m. Eastern time. To listen to the conference call by phone, dial 877-356-7051 for U.S. calls or 706-643-7695 for international calls. Reference Conference ID #3398865. To listen to a live broadcast over the Internet, go to http://www.p-com.com and click on the Investor Relations page. A replay of the call will be available for 90 days at www.p-com.com.

About P-Com, Inc.

P-Com, Inc. develops, manufactures, and markets point-to-point, spread spectrum and point-to-multipoint, wireless access systems to the worldwide telecommunications market. P-Com broadband wireless access systems are designed to satisfy the high-speed, integrated network requirements of Internet access associated with Business to Business and E-Commerce business processes. Cellular and personal communications service (PCS) providers utilize P-Com point-to-point systems to provide backhaul between base stations and mobile switching centers. Government, utility, and business entities use P-Com systems in public and private network applications. For more information visit www.p-com.com or call 408-866-3666.