SAN JOSE, Calif. — Aug. 9, 2006 — Symmetricom, Inc. (NASDAQ:SYMM), a worldwide leader in precise time and frequency products and services, today reported financial results for its fourth quarter and fiscal year ended June 30, 2006.

Fiscal fourth quarter revenue was $50.5 million, a 10.9 percent increase over the prior quarter revenue of $45.5 million and a 11.2 percent increase over revenue of $45.4 million in the fourth quarter of the previous year.  For the 2006 fiscal year ended June 30, 2006, revenue was $188.2 million, compared with $189.1 million in the 2005 fiscal year ended June 30, 2005.

Net earnings in the fourth quarter were $2.0 million or $0.04 per share on a fully diluted basis, compared with a net loss of $5.2 million or a net loss of $0.11 per share on a fully diluted basis in the prior quarter and net earnings of $5.9 million or $0.12 per share on a fully diluted basis in the prior year period.  In fiscal 2006, net earnings were $819,000 or $0.02 per share on a fully diluted basis, compared with net earnings of $17.9 million or $0.38 per share on a fully diluted basis for the prior fiscal year.  The 2006 third quarter net loss included a $7.0 million or $0.15 per share charge for the impairment of $6.2 million in goodwill and $0.8 million in other intangibles principally related to the company’s wireless business segment purchased in connection with the Datum acquisition in October 2002, which was determined in accordance with SFAS 142 for goodwill and SFAS 144 for other intangibles.  The 2005 fourth quarter net earnings included a $0.05 per share tax benefit related to the company’s operations in Puerto Rico.

Non-GAAP net earnings in the 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 $3.7 million or $0.08 per share on a fully diluted basis.  This compares with non-GAAP net earnings in the prior quarter of $2.8 million or $0.06 per share on a fully diluted basis and non-GAAP net earnings of $4.2 million or $0.09 per share on a fully diluted basis in the prior year period.

In fiscal 2006, non-GAAP net earnings were $16.0 million or $0.34 per share on a fully diluted basis, compared with $19.1 million or $0.41 per share on a fully diluted basis for the 2005 fiscal year.

Telecom Solutions Division (TSD) revenue in the quarter was $36.6 million, an increase of  $4.4 million or 13.7 percent over the prior quarter revenue of $32.2 million, and an increase of  $5.9 million or 19.4 percent over the prior year period revenue of  $30.7 million.  Fourth quarter 2006 revenue included $3.7 million from the “other revenue” component, which primarily consists of manufacturing performed for third parties.  As previously stated, the company anticipates exiting this “other revenue” business in the later half of fiscal 2007; therefore, going forward this component will be reported separately from the TSD business.  TSD revenue in fiscal 2006 was $129.2 million, compared with $130.3 million in the prior year.

Timing, Test & Measurement Division (TT&M) revenue in the quarter was $13.9 million, compared with $13.3 million in the prior quarter and $14.7 million in the prior year period.  TT&M revenue in fiscal 2006 was $59.0 million, flat with prior fiscal year revenue of $58.8 million.  During the third and fourth quarters of fiscal 2006, TT&M revenue was affected by funding delays for a number of government programs. 

“Over the past year, we established our position as a technology leader, innovator and full service synchronization and timing provider for wireline, wireless and cable next-generation networks,” said Thomas Steipp, president and CEO of Symmetricom.  “We reached notable milestones in our cable initiative and we made significant progress with next-generation projects among our major accounts in North America and Europe.”

Outlook for Q1 FY07
Symmetricom expects first quarter FY07 revenue to grow to a range of $49.0 million to $54.0 million.  The company expects GAAP earnings to be between $0.04 and $0.08 per share on a fully diluted basis, and non-GAAP earnings to be between $0.08 and $0.12 per share on a fully diluted basis.

Investor Conference Call
As previously announced, management will hold a conference call to discuss these results today, Aug. 9, at 1:30 p.m. Pacific time.  Those wishing to join should dial 415-228-4834 and reference the passcode “Symmetricom.”  A live webcast of the conference call will also be available via the company’s website at www.symmetricom.com.  A replay of the call will be available until Aug. 16 at 11:59 p.m. Pacific time.  To access the replay, please dial 203-369-3793.

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, impairment of goodwill and other 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, changes in anticipated customer demand to replace legacy products, progress made in developing product for the cable industry, 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, cable products or test and measurement products, our customers’ ability and need to upgrade existing equipment, our ability to attract cable service providers as new customers for our products, 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, 2005, subsequent Form 10-Q and Form 8K’s.

Note: Financial schedules attached.

Notes to Consolidated Statements of Operations (000’s) Three Months ended June 30, 2006

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

• For the three months ended June 30, 2006, the amortization of purchased technology related to the acquisitions of Datum, TrueTime, Telmax, HP Communications Synchronization Business and Agilent Technologies’ Frequency and Timing Standards product line, which amounted to $774;
• For the three months ended June 30, 2005, the amortization of purchased technology related to the acquisitions of Datum, TrueTime, Telmax, and HP Communications Synchronization Business, which amounted to $969;
• For the three months ended June 30, 2006, stock based compensation expense of $965 after adopting FAS123R;
• For the three months ended June 30, 2005, stock based compensation expense of $389 prior to adopting FAS123R;
• For the three months ended June 30, 2006, integration and restructuring charges related to the acquisition of Agilent Technologies’ Frequency and Timing Standards product line of  $385;
• For the three months ended June 30, 2006, amortization of other intangibles related to the Datum, TrueTime and Agilent Technologies’ Frequency and Timing Standards product line acquisitions of $118 (from operating expenses);
• For the three months ended June 30, 2005, amortization of other intangibles related to the Datum, and TrueTime acquisitions of $89 (from operating expenses);
• For the three months ended June 30, 2005, a reduction in selling, general and administrative expenses of $171 for bad debts due to the collection of old Datum receivables that were fully reserved;
• For the three months ended June 30, 2005, a reduction in selling, general and administrative expenses of $118 for a reserve adjustment for the retirement plan acquired from the Datum acquisition;
• For the three months ended June 30, 2005, gain on investment of $389 for sale of investment in Sarantel previously written off as impaired; and
• For the three months ended June 30, 2005 a tax benefit of $2,304 from 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 21.7% and 16.7% (excluding the Puerto Rico tax benefit) for the three months ended June 30, 2006, and 2005, respectively.  

Notes to Consolidated Statements of Operations (000’s) Twelve Months ended June 30, 2006

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

• For the twelve months ended June 30, 2006, the amortization of purchased technology related to the acquisitions of Datum, TrueTime, Telmax, HP Communications Synchronization Business and Agilent Technologies’ Frequency and Timing Standards product line, which amounted to $3,622;
• For the twelve months ended June 30, 2005, the amortization of purchased technology related to the acquisitions of Datum, TrueTime, Telmax, and HP Communications Synchronization Business, which amounted to $3,899;
• For the twelve months ended June 30, 2006, stock based compensation expense of $4,621 after adopting FAS123R;
• For the twelve months ended June 30, 2005, stock based compensation expense of $1,915 prior to adopting FAS123R;
• For the twelve months ended June 30, 2006, integration and restructuring charges related to the acquisition of Agilent Technologies’ Frequency and Timing Standards product line of  $1,154;
• For the twelve months ended June 30, 2006, amortization of other intangibles related to the Datum, TrueTime and Agilent Technologies’ Frequency and Timing Standards product line acquisitions of $435 (from operating expenses);
• For the twelve months ended June 30, 2005, amortization of other intangibles related to the Datum, and TrueTime acquisitions of $356 (from operating expenses);
• For the twelve months ended June 30, 2005, a reduction in selling, general and administrative expenses of $656 for bad debts due to the collection of old Datum receivables that were fully reserved and $368 due to an adjustment for a reserve for a repayment to a bankrupt customer of a collected receivable;
• For the twelve months ended June 30, 2005, a reduction in selling, general and administrative expenses of $118 for a reserve adjustment for the retirement plan acquired from the Datum acquisition;
• For the twelve months ended June 30, 2005 a tax benefit of $2,304 from recognition of deferred tax assets related to Puerto Rico operations;
• For the twelve months ended June 30, 2005, gain on investment of $389 for sale of investment in Sarantel previously written off as impaired;
• For the twelve months ended June 30, 2005, gain from discontinued operations of $162; and
• For the twelve months ended June 30, 2006, a pre-tax charge for the Wireless segment of $6,963 related to impairment of goodwill and $1,198 related to the impairment of purchased technology.

(d) The above non-GAAP Statements of Operations assume an annual effective income tax rate of 15.5% and 23.9% (excluding the Puerto Rico tax benefit) for the twelve  months ended June 30, 2006, and 2005, respectively.