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Starent Networks, Corp. Reports Fourth Quarter and Full Year 2007 Financial Results


Tewksbury, MA - January 31, 2008 - Starent Networks, Corp. (Nasdaq: STAR), a leading provider of infrastructure solutions that enable mobile operators to deliver multimedia services, today reported financial results for the fourth quarter and full year ended December 31, 2007. Net revenues for the fourth quarter of 2007 were $50.6 million, a sequential increase of 38% from the third quarter of 2007 and an increase of 108% from the fourth quarter of 2006. Net revenues for the full year ended December 31, 2007 were $145.8 million, up 55% from the year ended December 31, 2006.

Net income for the fourth quarter of 2007 was $4.2 million, or $0.06 per diluted share, compared to net income of $1.6 million, or $0.02 per diluted share, for the third quarter of 2007 and a net loss of $1.2 million, or $0.44 per diluted share, for the fourth quarter of 2006. Net income for the full year ended December 31, 2007 was $11.5 million, or $0.12 per diluted share, compared to net income of $3.6 million prior to allocations to preferred shareholders, which resulted in a net loss applicable to common shareholders of $0.62 per diluted share for the full year ended December 31, 2006. Fourth quarter 2007 results included $4.3 million of non-cash stock-based compensation expenses compared to expenses of $3.8 million in the third quarter of 2007 and $1.2 million in the fourth quarter of 2006. The results for the full year ended December 31, 2007 included $12.8 million of non-cash stock-based compensation expenses compared to expenses of $1.7 million for the full year ended December 31, 2006.

Excluding the impact of stock-based compensation and assuming preferred shares were converted as of the beginning of the applicable period, non-GAAP net income for the fourth quarter of 2007 was $8.4 million, or $0.11 per diluted share, and non-GAAP net income for the full year ended December 31, 2007 was $24.2 million, or $0.37 per diluted share, compared to a non-GAAP net loss for the fourth quarter of 2006 of $17,000, or $0.00 per diluted share, and non-GAAP net income for the full year ended December 31, 2006 of $5.3 million, or $0.10 per share.

Operational Highlights


Highlights for the fourth quarter and full year 2007 included several key business initiatives and milestones. In the fourth quarter, the company:

 

  • Further expanded its UMTS footprint and began initial shipments of products for WiMAX networks.
  • Announced the addition of Iusacell, one of Mexico's leading mobile operators and first 3G operator, as a customer. Starent Networks is providing Iusacell with Packet Data Serving Node (PDSN) and Home Agent (HA) network elements along with geographic redundancy, Intelligent Traffic Control and Enhanced Lawful Intercept.
  • Announced Cricket Communications, Inc., a wholly-owned subsidiary of Leap Wireless International, Inc., as a customer. Starent Network's multimedia core platform will enable Cricket to enhance its current offering of mobile applications such as text messaging, picture messaging and games, and to prepare for the next-generation of multimedia applications.
  • Signed a memorandum of understanding with the Ministry of Economic Affairs in Taiwan for WiMAX promotion and development along with Sprint Nextel, Nokia Siemens Networks, Alcatel-Lucent, and Motorola.

For the year 2007, the company:

  • Achieved significant penetration in the UMTS market and expansion of its geographic footprint in Western Europe and the Asia Pacific region. In 2007, Starent Networks secured agreements with UMTS mobile operators in Australia, Germany, Portugal, Spain, Taiwan and the UK.
  • Introduced its next generation multimedia core platform, the ST40. The platform offers increased performance for high-demand mobile multimedia broadband 3G networks, and is readily upgradeable to respond to evolving 4G radio networks as well as IP Multimedia Subsystem (IMS) and Multimedia Domain (MMD) functions.
  • Extended its leadership position in the CDMA market by adding several new mobile operator customers and geographies with deployments in India and Mexico, as well as expanding business with key existing customers.

Conference Call Information

Date: January 31, 2008

Time: 5:00 p.m. Eastern time

Toll-free North America: 888-713-4199

International dial-in number: 617-213-4861

Passcode: 50037228

Live webcast: Available at http://ir.starentnetworks.com

A telephone replay of the call will be available following the conference call through February 7, 2008. To access the replay, parties in the United States and Canada should call 888-286-8010 and parties outside of the United States and Canada should call 617-801-6888. The passcode for the replay is 36791080. An archived version of the webcast will be available until March 31, 2008 on the company's website at http://ir.starentnetworks.com.

About Starent Networks
Starent Networks, Corp. is a leading provider of infrastructure solutions that enable mobile operators to deliver multimedia services to their subscribers. Starent Networks has created solutions that provide mobile operators with the functions and services needed for access, mobility management and call control in their networks. Through integrated intelligence and high performance capabilities, Starent Networks' solutions also enhance subscriber management, billing and session policy enforcement. The company's products are capable of supporting a wide range of mobile wireless networks, such as UMTS, CDMA2000, WiFi, and WiMAX. Starent Networks' products have been deployed by over 65 mobile operators in 25 countries. Additional information about Starent Networks is available at www.starentnetworks.com.

 

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