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Sunrise Telecom® Reports First Quarter 2011 ResultsSAN JOSE, Calif. --(Business Wire)-- Sunrise Telecom (News - Alert)® Incorporated (OTC: SRTI) today posted its unaudited financial results for the quarter ended March 31, 2011. Sunrise Telecom reported revenue of $8.1 million for the quarter, compared to $10.5 million for the first quarter of 2010. EBITDA for the quarter was $(0.4) million, compared to $0.6 million for the quarter ended March 31, 2010. Operating costs declined to $5.8 million during the first quarter of 2011 from $6.3 million for the first quarter of 2010. First quarter net loss was $(0.9) million, or $(0.02) per share, compared to break-even results in the first quarter of 2010. The company generated positive EBITDA of $1.0 million for the 12-month period ended March 31, 2011. As of March 31, 2011, the company's cash and marketable securities were $11.7 million, an increase of $1.8 million from December 31, 2010. The company attributed its revenue decline in the first quarter of 2011 to sales seasonality, the transition to a new channel in North America and softness in the Asia region. During the quarter, the company added new sales and support personnel to improve global coverage; and the company anticipates that new product introductions, such as the RxT and IntelliSAMTM, will spark future demand for Sunrise Telecom's testing and service assurance solutions. "After coming off of a strong fourth quarter in 2010, we expected and planned for seasonal softness in the first quarter of 2011. During the quarter, we made tremendous progress toward transitioning to a highly effective and efficient distribution model in North America and are beginning to see traction on key tier-one accounts for new and existing products," said Bahaa Moukadam (News - Alert), Sunrise Telecom's chief executive officer. In the first quarter, Sunrise Telecom announced the innovative RxT, a game-changing, field-testing solution for telecom, cable and mobile operators. The RxT is a fully connected, workflow-optimized platform that improves the productivity of its customers. A single, smart device, the RxT is the ultimate solution for communication service providers looking to reduce capital expenses and operating expenses and deliver high-quality subscriber services. "We are aggressively investing in a full line of test and productivity solutions for the RxT in the coming quarters to address technological and business challenges associated with deploying Carrier Ethernet, mobile backhaul and access networks," stated Mr. Moukadam. In addition, the company announced IntelliSAM, a Carrier Ethernet, service-activation test suite based on the recently approved ITU Y.1564 recommendation, formerly known as Y.156sam. The newly enhanced test methodology, specifically written for service activation and closely tailored to the bandwidth profile parameters being sold, represents the most comprehensive test suite for Carrier Ethernet services in the industry. The company also reported the departure of My Chung, senior vice president of worldwide sales. "We are grateful for My's contributions over the last year and a half and his leadership toward the restructuring of our worldwide distribution channels as we prepare for key product launches during the remainder of fiscal 2011. With My's departure, my executive team and I will be working more closely with sales to improve visibility and execution," explained Mr. Moukadam. Sunrise Telecom plans to host its annual meeting of stockholders at 11:00 AM at the company's headquarters in San Jose on May 18, 2011. The company also plans to attend the B. Riley investor conference on May 25, 2011, in Santa Monica, California. Bahaa Moukadam, chief executive officer, and Lyron Bentovim, chief operating officer/chief financial officer, will update investors on the company's transformation plan and will hold one-on-one meetings with interested investors. About Sunrise Telecom Sunrise Telecom develops and delivers high-quality communications test and measurement solutions for telecom, cable and wireless networks. The Company's robust portfolio of feature-rich, easy-to-use products enables service providers to deliver premium voice, video, data and next-generation digital multimedia services quickly, reliably, and cost-effectively. Based in San Jose, California, Sunrise Telecom distributes its products through a direct sales force and a global network of sales representatives and distributors. Sunrise Telecom makes available on or through its website press releases and other information of interest to investors. Sunrise Telecom's website may be found at www.sunrisetelecom.com. Sunrise Telecom files with OTC Markets Group annual, quarterly and other reports, and any amendments to those reports. Sunrise Telecom files with OTC Markets Group yearly financial statements audited by independent auditor, Armanino McKenna LLP. Its quarterly financial statements filed with OTC Markets Group are unaudited and unreviewed by Armanino McKenna LLP. For more information, visit http://www.sunrisetelecom.com or email [email protected]. Use of Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933, including, but not limited to, material contained in quotations and statements related to the release and expected future sales of new products. These forward-looking statements are subject to many risks and uncertainties that could cause actual results to differ materially from those projected. Specific factors that may cause results to differ include the following: customer acceptance of Sunrise Telecom's new or enhanced products and modules may be slower than expected; product development or introduction into the marketplace may take longer or be more expensive than we anticipate; product delivery schedules may be delayed for development, manufacturing or other reasons; and end-user demand for telecommunications services may be lower than our customers expect, leading to corresponding cutbacks in their spending on our products. These and other risks and uncertainties are described in more detail in Sunrise Telecom's reports including, but not limited to, its annual report for the year ended December 31, 2010 filed with OTC Markets Group. Sunrise Telecom assumes no obligation to update the forward-looking statements included in this press release.
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