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PROX - Proxim Corporation Announces First Quarter 2004 Preliminary Results

/FROM PR NEWSWIRE SAN FRANCISCO 415-543-7800/
TO BUSINESS AND TECHNOLOGY EDITORS:

Proxim Corporation Announces First Quarter 2004 Preliminary Results

SUNNYVALE, Calif., April 7 /PRNewswire-FirstCall/ -- Proxim Corporation
(Nasdaq: PROX), a global leader in wireless networking equipment for Wi-Fi and
wide area networks, announced today that it expects to report revenue for the
first fiscal quarter of 2004 of between $25 million and $27 million, compared
to the $37 million target previously provided in January 2004. Based on
revenue in this range, Proxim expects to report a non-GAAP or operating
pro-forma loss per share in the range of ($.06) to ($.04) for the first fiscal
quarter of 2004, which compares to the target range previously provided for
the quarter of ($.03) to ($.01).
Proxim also estimates that its first quarter order backlog will be
approximately $12.0 million, reflecting a late quarter increase in orders.
This compares to an order backlog of $6.3 million at the end of the fourth
quarter 2003. Cash, cash equivalents and restricted cash at the end of the
first quarter are expected to be approximately $16.6 million, compared to
$21.0 million at the end of the fourth quarter 2003.

Factors that contributed to the first quarter revenue shortfall and
greater than anticipated order backlog included the following:

-- Lower than expected carrier revenue during a traditionally challenging
first quarter. For Proxim, this first quarter seasonality was more
pronounced due to carrier consolidation and delayed deployments,
although order flow materialized late in the quarter, as evidenced by
Proxim's order backlog.
-- The first quarter impact of product transition from the Proxim ORiNOCO
AP-2000 wireless LAN access points to the next generation ORiNOCO
AP-4000 platform. A combination of initial AP-4000 product availability
issues and the challenges associated with transitioning these high
volume product lines through Proxim's distribution channels contributed
to Proxim's lower than expected revenues.

"Although we are disappointed with this revenue performance, we believe
that the seasonal and product transition issues are addressable," said
Frank Plastina, Chairman and CEO of Proxim. "We are encouraged by our strong
end of quarter order backlog and effective cash management."
These preliminary results are based on management's initial analysis of
operating results and are subject to change as channel sell through and other
financial information becomes available. At this time, Proxim is unable to
provide preliminary GAAP loss per share results or a reconciliation of
preliminary pro forma to GAAP loss per share results for the first quarter of
2004, due primarily to the Company's need to complete the valuation of certain
warrants previously issued by the Company during fiscal year 2003. The Company
is scheduled to announce its final results for the first quarter, including
its GAAP results, after the market close on April 27, 2004. Details regarding
the April 27th conference call will be provided in a separate press release.

Conference Call Information
In conjunction with this announcement, Proxim will host a conference call
today, April 7, 2004, at 8:30 a.m. Eastern Daylight time to discuss the
preliminary first quarter financial results.

Dial-In Information
To listen to the conference call via telephone, dial 913-981-5510 at least
five minutes prior to the scheduled start time.

Webcast Information
To listen to the webcast, go to www.proxim.com, and click on the link
titled "Proxim Announces Preliminary First Quarter 2004 Results Call." The
minimum requirements to listen include sound capabilities on your personal
computer and installation of RealPlayer software available at no cost for
Windows 95/98, Windows 3.1, Windows NT, Macintosh, and UNIX systems from Real
Audio, www.real.com.
The call will be archived immediately following the conference call and
will remain available at http://investor.proxim.com . Additionally, the
conference call will be available on a recorded telephone archive by calling
toll free 888-203-1112 and entering pass code 691348, beginning Wednesday,
April 7 at 10:30 a.m. Eastern Time until midnight Eastern Time on Saturday,
April 27, 2004. For international callers, the recorded telephone archive is
available by calling the following toll number: 719-457-0820 and entering
pass code 691348.

About Proxim
Proxim Corporation is a global leader in wireless networking equipment for
Wi-Fi and broadband wireless networks. The company is providing its enterprise
and service provider customers with wireless solutions for the mobile
enterprise, security and surveillance, last mile access, voice and data
backhaul, public hot spots, and metropolitan area networks. This press release
and more information about Proxim can be found on the Web at www.proxim.com.

Safe Harbor
This press release contains forward-looking statements as that term is
defined in the Private Securities Litigation Reform Act of 1995. These
forward-looking statements include statements concerning Proxim's preliminary
results for the first quarter of 2004 and the Company's belief that seasonal
demand and product transition issues are addressable, and are subject to risks
and uncertainties that could cause actual results to differ materially. These
risks and uncertainties include, but are not limited to, the risks that:
Proxim's financial results for the first quarter of 2004 may be different from
preliminary results as a result of additional information from distributors
regarding sales of the Company's products in the channel; results for the
first quarter of 2004 may vary depending on the final determination of
revenue, cost of revenue, operating expenses, charges and cash balances;
results for the first quarter of 2004 may differ from preliminary results
based on the review of the Company's independent accountants and the audit
committee; Proxim's efforts to address seasonal demand and transitions of
product platforms will not succeed; the market for Proxim's products will not
grow as anticipated or that Proxim will not be able to take advantage of
market opportunities due to competition, product performance, product pricing,
product supply or other issues and other risks and uncertainties associated
with Proxim's business. For additional information regarding risks relating to
Proxim's business, see Proxim Corporation's Form 10-K for the year ended
December 31, 2003, and Current Reports on Form 8-K and other relevant
materials filed by Proxim with the SEC.

Use of Pro Forma Financial Information
To supplement our consolidated financial statements presented on a GAAP
basis, Proxim uses non-GAAP, or pro forma, measures of operating results, net
income/loss and income/loss per share, which are adjusted to exclude certain
costs, expenses, gains and losses that we believe are useful to enhance the
overall understanding of our financial performance. These adjustments to our
GAAP results are made with the intent of providing both management and
investors a supplemental understanding of Proxim's underlying operational
results and trends. Adjusted pro forma results are among the primary
indicators management uses as a basis for planning and forecasting our
business. The presentation of this additional information is not meant to be
considered in isolation or as a substitute for Proxim's financial results
prepared in accordance with generally accepted accounting principles in the
United States. At this time, Proxim is unable to provide preliminary GAAP loss
per share results or a reconciliation of preliminary pro forma to GAAP loss
per share results for the first quarter of 2004, due primarily to the
Company's need to complete a valuation of certain warrants previously issued
by the Company during fiscal year 2003.

SOURCE Proxim Corporation

/CONTACT: Ben Gibson of Proxim Corporation, [phone], or
[e-mail]/

/Web site: http://investor.proxim.com/


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

Apr-07-2004 11:01 GMT
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DE;PXI DE;PXIF DE;PXIX US;PROX
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