SMRA Somera Communications (MM)

DALLAS, April 6 /PRNewswire-FirstCall/ -- Somera Communications, Inc. (NASDAQ:SMRA) today announced that the Company's independent registered public accounting firm included an explanatory paragraph in its audit report included in the Company's Annual Report on Form 10-K for the year ended December 31, 2005, relating to the Company's ability to continue as a going concern. As of December 31, 2005, Somera had $6.5 million in cash and cash equivalents, $11.2 million in short-term investments, and no long-term debt. The Company believes that cash and cash equivalents, proceeds from short-term investments and anticipated cash flow from operations will be sufficient to fund the Company's working capital and capital expenditure requirements for at least the next 12 months. However, the Company has incurred losses from operations and negative cash flows over the last three years and cannot provide assurance that actual cash requirements will not be greater than what the Company currently expects. Somera announced earlier this year a series of operational rebalancing actions including the elimination of 70-80 positions, consolidation of facilities and reduction of other overhead costs. The goal of the Company's rebalancing effort is to reduce costs so that the Company achieves quarterly break-even at revenue levels of $16-$18 million per quarter. While the Company believes it has made substantial progress toward implementing this plan, there can be no assurance that the cost reduction targets or revenue levels will be achieved, which could result in the Company incurring continued operating losses, and consumption of working capital and cash and short-term investment balances. The Company will release its 2006 first quarter financial statements coincident with the filing of the first quarter Form 10-Q, at which time the Company will provide additional information on its progress. About Somera Somera Communications is a telecom asset management firm that assists service providers in generating greater value from their network assets in the form of lower operating costs, longer product life, higher productivity, and real measurable savings. Somera provides immediate availability of quality, warranted new and refurbished equipment at savings of 25% to 60%. Extending these benefits is Somera RecoveryPLUS, which deploys knowledgeable personnel, proven processes and proprietary software to each client location to provide professional discovery, valuation and asset cataloging, thereby enhancing ongoing network efficiency while improving the accuracy and quality of reports required of today's regulatory environment. In addition, Somera offers outsourced network operations, logistics, and technical service, as well as comprehensive repair services for wireless, wireline, and data products -- all at significant savings and reduced cycle times. Founded in 1995, Somera has developed an impressive base of over 1,100 customers worldwide, including the industry leaders from each segment of the telecommunications market. Visit Somera on the web at http://www.somera.com/. This news release contains forward-looking statements as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Somera's operating and financial results are subject to risks and uncertainties, including, but not limited to, general economic conditions particularly affecting the telecommunications industry; capital equipment spending levels in the telecommunications industry, including the risk of continued customer spending delays associated with carrier consolidation; the impact of competition in the market for supplying equipment and equipment lifecycle management services to telecommunications operators; the risk of potential shortage of product supply; and Somera's ability to build its lifecycle management services capabilities; approval of the reverse stock split proposal to be submitted to the company's stockholders; establishment and maintenance of a common stock per share price that will permit the Company to maintain the eligibility of its common stock for quotation on the Nasdaq National Market; the ability to raise additional capital on favorable terms for the Company; and other factors fully described in the company's reports to the Securities and Exchange Commission, including but not limited to, the Annual Report on Form 10-K for the fiscal year ended December, 31, 2005, and its Quarterly Reports on Form 10-Q. The company does not undertake to update any forward-looking statements that may be made by or on behalf of the company. Copies of Somera's Securities and Exchange Commission filings may be obtained by contacting Financial Relations Board at 310-854-8317 or by visiting the Investor section of Somera's web site at http://www.somera.com/. Contact: Tony Rossi Investor Relations for Somera Communications Financial Relations Board 310-854-8317 DATASOURCE: Somera Communications, Inc. CONTACT: Tony Rossi, Investor Relations of Financial Relations Board, +1-310-854-8317, for Somera Communications Web site: http://www.somera.com/

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