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Breaking News - Networking:

Packeteer Announces Record Third Quarter Financial Results

Packeteer Inc, a leading provider of application traffic management systems, announced record revenues and results of operations for the quarter ended Sept. 30.

Net revenues for the third quarter 2003 were $18.4 million, compared with $17.5 million for the second quarter 2003, an increase of 5 percent. Net revenues for the third quarter 2002 were $14.0 million. Net income for the third quarter 2003 was $3.0 million or nine cents per share. This compares to second quarter 2003 net income of $2.6 million or eight cents per share. The third quarter 2002 net income was $1.2 million or four cents per share.

The balance sheet at the end of Q3 2003 remained strong. Cash, cash equivalents and investments of $79.5 million at Sept. 30 were $3.2 million higher than the balances of $76.3 million at June 30. Accounts receivable of $8.8 million at Sept. 30 represented 44 days sales outstanding compared to 40 days sales outstanding at June 30. Total inventories of $2.3 million at Sept. 30 were $400,000 higher than the June 30 balance of $1.9 million.

"We have again delivered strong financial performance for the third quarter 2003. In this ongoing difficult economy, I am delighted that we have once again delivered increased revenues and profits," stated Dave Cote, president and CEO. "Going forward, we continue to plan for additional revenue and profit growth.

As customers continue to focus on maximizing their existing IT infrastructure, Packeteer products help them meet this goal by increasing performance of their applications, while reigning in costs. We believe that the increased use of open networks and the Internet in enterprise environments continues to cause increases in network congestion and a corresponding degradation in application performance and that our products allow companies to reverse performance degradation and fight network congestion."

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