SAN JOSE, Calif. — August 9, 2005 — Symmetricom, Inc. (NASDAQ:SYMM), a leading worldwide supplier of network synchronization and timing solutions, today reported results for its fourth quarter and fiscal year ended June 30, 2005.

Fiscal fourth quarter revenue was $45.4 million, an increase of $1.6 million, or 3.6 percent, over prior quarter revenue of $43.8 million, and a decrease of $4.3 million, or 8.6 percent, from the same period last year. For the fiscal year ended June 30, 2005, revenue was $189.1 million, an increase of $16.3 million, or 9.4 percent, over the prior fiscal year revenue of $172.8 million. Strong performance in the wireline and government businesses in fiscal 2005 was partially offset by weakness in the wireless OEM business.

Net earnings from continuing operations for the fiscal fourth quarter were $5.9 million, or $0.12 per share on a fully diluted basis, compared with $2.8 million, or $0.06 per share on a fully diluted basis, in the prior quarter. Net earnings for the fiscal fourth quarter of 2005 included a $2.3 million tax benefit from recognition of deferred tax assets related to Puerto Rico operations. In the same period of the prior year, the company reported net earnings from continuing operations of $2.1 million, or $0.05 per share on a fully diluted basis. For the fiscal year ended June 30, 2005, net earnings from continuing operations were $17.8 million, or $0.38 per share on a fully diluted basis, compared with a net loss from continuing operations for the prior fiscal year of $2.3 million, or a loss of $0.05 per share.

Non-GAAP net earnings for the fiscal fourth quarter, which excludes certain items related to non-cash compensation, amortization of acquired intangibles, integration and restructuring charges and unusual and non-recurring items, were $4.2 million, or $0.09 per share on a fully diluted basis. This compares with non-GAAP net earnings in the fourth quarter of fiscal year 2004 of $3.8 million, or $0.08 per share on a fully diluted basis. For the fiscal year ended June 30, 2005, non-GAAP net earnings were $19.1 million, or $0.41 per share on a fully diluted basis, compared with non-GAAP net earnings for the prior fiscal year of $4.4 million, or $0.10 per share on a fully diluted basis.

Telecom Solutions Division revenue for the quarter was $30.7 million, an increase of $1.6 million, or 5.4 percent over the prior quarter, and a decrease of $5.5 million, or 15.3 percent over the same period last fiscal year.  The year-over-year revenue decrease was principally due to softness in the wireless business, which declined nearly 50 percent.  Timing, Test & Measurement Division revenue for the quarter was $14.7 million, flat with the prior quarter and up $1.3 million, or 9.6 percent, over the same period last fiscal year.

“Fiscal 2005 was a superb year for Symmetricom, marked by growth in sales, gross margins, profits and cash flow,” said Thomas Steipp, president and CEO of Symmetricom. “Both of our divisions, Telecom Solutions Division (TSD) and Timing, Test and Measurement (TTM), experienced good revenue growth.

“The year was also marked by considerable progress in our efforts to provide new sync equipment for the build-out of next-generation networks. In addition to supporting network modernization at carriers such as CenturyTel, AllTel and MCI, we were awarded RFPs for next-generation equipment by three major wireline carriers in the third quarter. We have now signed two of the contracts, which are important milestones for the build-out of next-generation networks,” said Steipp.

Symmetricom acquired Agilent’s Frequency and Time Standards product line on Aug. 1, 2005. This high-performance cesium business further strengthens the Symmetricom brand and creates additional market opportunities for the Timing, Test and Measurement division.

Other Fiscal Year 2005 Highlights

• Increased gross margins from 35.7 percent to 46.8 percent year-to-year
• Generated $26.2 million in cash from operations
• Completed convertible debt offering for $120 million
• Successfully launched new products in both divisions, including Time Provider with new functionality and secure (SAASM) GPS receivers
• Added new talent to the management team
• Gained traction in emerging markets such as cable and wireless Quality of Service

Outlook for Q1 FY06
Symmetricom expects first quarter FY06 revenue to be between $43 million and $48 million.  The company expects earnings to be between $0.01 and $0.05 per share. This includes an estimated charge, net of tax, of $0.02 for the impact of expensing stock options in compliance with FAS123R. The forecast includes partial quarter revenues from products acquired from Agilent Technologies of approximately $500,000 and a small loss due to the restructuring expenses required to consolidate the product line.

Investor Conference Call
As previously announced, management will hold a conference call to discuss these results today, August 9 at 1:30 p.m. Pacific Time.  Those wishing to join should dial 517-308-9001, passcode “Symmetricom.”  Please reference the conference leader: Thomas Steipp.  A live webcast of the conference call will also be available via the company’s website at www.symmetricom.com or www.vcall.com.  A replay of the call will be available for one week.  To access the replay, please dial 402-998-1044.

Non-GAAP Information
Certain non-GAAP financial information is included in this press release. In the non-GAAP Statements of Operations, Symmetricom excludes certain items related to non-cash compensation, amortization of acquired intangibles, integration and restructuring charges and unusual and non-recurring items. Symmetricom believes that excluding such items provides investors and management with a representation of the company’s core operating performance and with information useful in assessing our prospects for the future and underlying trends in Symmetricom’s operating performance.  Management uses such non-GAAP information to evaluate financial results and to establish operational goals. Non-GAAP information is not determined using GAAP and should not be considered superior to or as a substitute for data prepared in accordance with GAAP.  A reconciliation of the non-GAAP results to the GAAP results is provided in the “Consolidated Statements of Operations (non-GAAP)” schedule provided in the press release.

Safe Harbor 
This press release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the safe harbor created by those sections. These forward-looking statements include statements concerning estimates of future revenue and earnings, potential business from new and future contracts and new products, expectations regarding increased spending by our customers, as well as the information regarding the usefulness of the non-GAAP financial information.  Symmetricom's actual results could differ materially from those projected or suggested in these forward-looking statements. Factors that could cause future actual results to differ materially from the results projected in or suggested by such forward-looking statements include: reduced rates of demand for telecommunication products or test and measurement products, our customers’ ability and need to upgrade existing equipment, our ability to negotiate contracts with our customers, our ability to maintain gross margins, timing of orders, cancellation or delay of customer orders, loss of customers, difficulties in manufacturing products to specification or customer volume requirements, challenges in integrating businesses,  customer acceptance of new products,  geopolitical risks such as terrorist acts and the risk factors listed from time to time in Symmetricom's reports filed with the Securities and Exchange Commission, including the report on Form 10-K for the year ended June 30, 2004 and subsequent Form 10-Q and Form 8-K filings.

Note: Financial schedules attached.

Notes to Consolidated Statements of Operations (000’s) Three Months ended June 30

(a) The above non-GAAP Statements of Operations exclude the effects of the following:

• For the three months ended June 30, 2005 and June 30, 2004 the amortization of purchased technology related to the acquisitions of Datum, TrueTime, Telmax and the HP Communications Synchronization Business, which amounted to $969 and $971, respectively (from cost of goods);
• For the three months ended June 30, 2005 and June 30, 2004 the amortization of stock based compensation of $425 and $69, respectively;
• For the three months ended June 30, 2005 and June 30, 2004 amortization of other intangibles related to the Datum and TrueTime acquisitions of $89 and $127, respectively (from operating expenses);
• For the three months ended June 30, 2005, a benefit of expense reductions of $171 for recovery of bad debts due to collection of old Datum receivables and a benefit of $118 for a reserve adjustment for the Datum retirement plan; and
• For the three months ended June 30, 2005 a tax benefit of $2,304 for the recognition of deferred tax assets related to Puerto Rico operations.

(b) The above non-GAAP Statements of Operations assume a quarterly effective income tax rate of 16.7% and 5.4% for the three months ended June 30, 2005 and 2004, respectively.  

Notes to Consolidated Statements of Operations (000’s) Twelve Months ended June 30

(c) The above non-GAAP Statements of Operations exclude the effects of the following:

• For the twelve months ended June 30, 2005 and June 30, 2004 the amortization of purchased technology related to the acquisitions of Datum, TrueTime, Telmax and the HP Communications Synchronization Business, which amounted to $3,899 and $3,911, respectively (from cost of goods);
• For the twelve months ended June 30, 2004, integration and restructuring charges related to the Datum, TrueTime, Net Monitor and the HP Communications and Synchronization Business acquisitions of $8,187, of which $5,862 was excluded from cost of goods and $2,325 (from operating expenses);
• For the twelve months ended June 30, 2005 and June 30, 2004 the amortization of stock based compensation of $2,006 and $251, respectively;
• For the twelve months ended June 30, 2005 and June 30, 2004 amortization of other intangibles related to the Datum and TrueTime acquisitions of $356 and $508, respectively (from operating expenses);
• For the twelve months ended June 30, 2005, a benefit of expense reductions for $656 for recovery of bad debts due to collection of old Datum receivables and an expense reduction of $368 for an adjustment for a reserve for repayment to a bankrupt customer of a collected receivable, and a benefit of $118 for a reserve adjustment for the Datum retirement plan;
• For the twelve months ended June 30, 2005 a tax benefit of $2,304 for the recognition deferred tax assets related to Puerto Rico operations; and
• For the twelve months ended June 30, 2005 and June 30, 2004 the impact of discontinued operations for the Trusted Time Division of $162 and $30, respectively.

The above non-GAAP Statements of Operations assume a year to date effective income tax rate of 23.9% and 48.5% for the twelve months ended June 30, 2005 and 2004, respectively.