[advertise]广告[/advertise]FREMONT, Calif., October 27, 2009 — Ikanos Communications, Inc. (NASDAQ: IKAN), a leading provider of advanced broadband semiconductor and software products for the digital home, today reported its financial results for the third quarter ended September 27, 2009. “During the third quarter, we successfully completed a number of strategic initiatives including the Conexant Broadband Access acquisition, a strategic alliance with ASSIA Inc., and the introduction of Ikanos Velocity™, the industry’s lowest power high-performance A/VDSL central office chipset,” said Michael Gulett, president and CEO at Ikanos. “These accomplishments strengthen our ability to compete in our core broadband DSL market. In addition, we are pleased with the growth in our communications processor business which accounted for approximately 25 percent of revenue in the most recent quarter.” Financial Highlights: Revenue for the third quarter of 2009 was $29.3 million compared with revenue of $22.4 million for the second quarter of 2009 and revenue of $24.2 million for the year ago period. Ikanos reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP) and additionally on a non-GAAP basis. Non-GAAP net income (loss), where applicable, excludes the income statement effects of stock-based compensation, restructuring charges and certain expenses resulting from acquisitions such as transaction-related expenses, amortization of intangible assets, asset impairments, investment impairments, one time severance expenses, fair value adjustment of the acquired inventory and in-process research and development charges. Ikanos has provided these measures because management believes these additional non-GAAP measures are useful to investors for performing financial analysis as these additional measures highlight Ikanos’ recurring operating results. Ikanos’ management uses these non-GAAP measures internally to evaluate its operating performance and to plan for its future. However, non-GAAP measures are not a substitute for GAAP reporting. For a reconciliation of GAAP versus non-GAAP financial information, please see the attached schedule. GAAP net loss for the third quarter of 2009 was $15.5 million, or $0.40 per share, on 38.8 million weighted average shares. This compares with a net loss of $6.4 million, or $0.22 per share, on 29.4 million weighted average shares in the second quarter of 2009 and with a net loss of $26.7 million, or $0.93 per share, on 28.6 million weighted average shares in the third quarter of 2008. Non-GAAP net loss for the third quarter of 2009 was $4.5 million, or $0.12 per share, on 38.8 million weighted average shares. This compares with non-GAAP net loss of $2.8 million, or $0.09 per share, in the second quarter of fiscal 2009, and with a non-GAAP net loss of $2.2 million, or $0.08 per share, in the third quarter of 2008. Revenue for the nine months ended September 27, 2009 was $72.5 million compared with the $83.7 million reported for the nine months ended September 28, 2008. GAAP net loss for the nine months ended September 27, 2009 was $28.0 million, or $0.86 per share, on 32.5 million weighted average shares. This compares with a net loss of $35.4 million, or $1.22 per share, on 29.1 million weighted average shares for the year ago period. Non-GAAP net loss for the nine months ended September 27, 2009 was $10.0 million, or $0.31 per share, compared with non-GAAP net loss of $0.6 million, or $0.02 per share, for the year ago period. Weighted average shares used in computing non-GAAP net loss per share were 32.5 million in 2009 and 29.1 million in 2008. Recent Highlights: • Ikanos completed the acquisition of the Broadband Access product line from Conexant Systems, Inc. Under the terms of the agreement, Ikanos purchased Conexant’s Broadband Access product line for approximately $53 million in cash, excluding transaction costs, and the assumption of certain employee and facility related liabilities. Simultaneously, Ikanos received an investment of $42 million, excluding transaction-related expenses, from Tallwood Venture Capital. • Ikanos introduced its Ikanos Velocity™ family of low-power, full-featured VDSL access chipsets. These robust, high-density central office (CO) devices provide up to 100 Mbps symmetric bandwidth and operate at sub 1 Watt per port – the lowest power consumption of any A/VDSL device on the market. And the Ikanos Velocity chipsets are the first CO A/VDSL semiconductor devices compliant with European Code of Conduct (CoC) power consumption standards. The Velocity chipsets also include proprietary Ikanos Quality Video (iQV™) technology, which provides exceptional delivery of data-intensive triple play applications, including multi-channel high-definition IPTV, high-speed data transmission, video on demand (VoD) and voice over Internet Protocol (VoIP). • Ikanos announced a strategic relationship with ASSIA Inc., a leading provider of Dynamic Spectrum Management (DSM) technology. Under terms of the agreement, Ikanos receives a license to ASSIA’s essential DSM patents and certain know how for the development of vectored DSL products – also known as DSM Level 3 or G. Vector – capable of delivering speeds of 100 Mbps and greater over existing copper loops. In addition, the two companies will co-market each others’ products to the network equipment and service provider industries. • Ikanos announced that it has joined forces with DSP Group, Inc™ to demonstrate a reference design for a multi-service residential gateway with fully integrated Digital Enhanced Cordless Telecommunications (DECT) capabilities. The DECT/CAT-iq Module from DSP Group, combined with Ikanos’ Fusiv® Vx180 integrated gateway processor, is designed to enable network equipment manufacturers to quickly bring to market a platform that supports cordless telephony as a part of a residential gateway offering. Outlook: • Revenue is expected to be between $55.0 million and $58.0 million for the fourth quarter of 2009. • Non-GAAP gross margins are expected to be between 44% and 46% in the fourth quarter of 2009. GAAP gross margins in the fourth quarter of 2009 will be lower than non-GAAP gross margins, as they will include amortization of acquisition-related intangibles of approximately $2.0 million, amortization of the fair-value of acquired inventory of approximately $6.0 to $7.5 million and charges related to stock-based compensation expense in accordance with FAS 123(R) of approximately $0.1 million. • Non-GAAP operating expenses are expected to be in the range of $25.0 to $26.0 million in the fourth quarter of 2009. GAAP operating expenses in the fourth quarter of 2009 will be higher than non-GAAP operating expenses, as they will include amortization of acquisition-related intangibles of $1.9 million and charges related to stock-based compensation expense in accordance with FAS 123(R) of $1.5 to $2.0 million. About Ikanos Communications, Inc. Ikanos Communications, Inc. (NASDAQ: IKAN) is a leading provider of advanced broadband semiconductor and software products for the digital home. The company’s broadband DSL, communications processors and other offerings power access infrastructure and customer premises equipment for many of the world’s leading network equipment manufacturers and telecommunications service providers. For more information, visit www.ikanos.com.