SAN JOSE, Calif. — Feb. 1, 2007 — Symmetricom, Inc. (NASDAQ:SYMM), a leading worldwide supplier of network synchronization and timing solutions, today reported financial results for its fiscal 2007 second quarter ended Dec. 31, 2006.

Fiscal second quarter revenue was a record $54.6 million, an increase of $3.6 million, or 7.0 percent over first fiscal quarter revenue of $51.1 million, and an increase of $6.7 million, or 14.1 percent over revenue of $47.9 million in the second quarter of the prior year. For the six-month period ended Dec. 31, 2006, revenue was $105.7 million, an increase of $13.5 million or 14.7 percent over revenue of $92.2 million in the same period of the prior year.

Net earnings in the fiscal second quarter were $3.6 million or $0.08 per share on a fully diluted basis, compared with prior quarter net earnings of $3.8 million or $0.08 per share. In the second fiscal quarter a year ago, net earnings were $2.7 million or $0.06 per share on a fully diluted basis. For the six-month period ended Dec. 31, 2006, net earnings from continuing operations were $7.4 million or $0.16 per share on a fully diluted basis, compared with $4.0 million or $0.09 per share in the same period of the prior year.

Non-GAAP net earnings, which exclude certain items related to non-cash compensation, amortization of acquired intangibles and other non-recurring charges, were $5.8 million, or $0.12 per share on a fully diluted basis, compared with prior quarter non-GAAP net earnings of $5.1 million or $0.11 per share, and non-GAAP net earnings of $4.4 million or $0.09 per share in the second quarter a year ago.  For the six-month period ended Dec. 31, 2006, non-GAAP net earnings were $10.8 million or $0.23 per share on a fully diluted basis, compared with non-GAAP net earnings from continuing operations for the same period of the prior year of $7.7 million or $0.16 per share.
 
Telecom Solutions Division revenue, excluding the “other revenue” component, was $32.8 million in the quarter, an increase of $0.7 million or 2.2 percent, compared with prior quarter revenue of $32.1 million, and an increase of $4.9 million or 17.5 percent over the $27.9 million in revenue reported in the prior year period. Revenue for the six-month period ended Dec. 31, 2006, was $64.9 million, an increase of $8.9 million or 15.9 percent over revenue of $56.0 million in the same period of the prior year.

Timing, Test & Measurement Division revenue in the quarter was $19.0 million, an increase of $3.8 million or 25.1 percent over first quarter revenue of $15.2 million, and an increase of $1.6 million or 9.3 percent over revenue of $17.4 million in the same period of the prior year. Revenue for the six-month period ended Dec. 31, 2006, was $34.1 million, an increase of $2.3 million or 7.3 percent over revenue of $31.8 million in the same period of the prior year.

The “other revenue” component, which primarily consists of manufacturing performed for third parties, was $2.9 million in the fiscal 2007 second quarter, a decrease of $0.9 million from the $3.8 million the company reported in the previous quarter, and an increase of $0.3 million from the $2.6 million reported in the same quarter last year.  Revenue for the six-month period ended Dec. 31, 2006, was $6.7 million, an increase of $2.4 million over the $4.4 million reported in the same period last year. As previously announced in its Form 8K filing on April 28, 2006, the company anticipates exiting this “other revenue” business in the second half of fiscal 2007.    

Recent Highlights

• Achieved record revenues of $54.6 million in the fiscal second quarter
• Acquired Timing Solutions Corp. on Oct. 2, 2006 and QoSmetrics S.A. on Jan.2, 2007
• First trials begun with select wireless equipment manufacturers on the use of IEEE 1588 protocol in next generation networks
• Verizon continued its upgrade program and represented 16 percent of total revenues in the fiscal second quarter
• We have begun to receive initial orders from cable equipment manufacturers for TimeCreator 1000 for use in lab testing of modular CMTS products

Outlook for Q3 FY07
Symmetricom expects third quarter FY07 revenue to be in the range of $50.0 million to $55.0 million.  GAAP earnings are expected to be between $0.01 and $0.05 per share on a fully diluted basis excluding any QoSmetrics related in-process research and development charges which will be determined upon completion of the acquisition valuation.  Non-GAAP earnings are expected to be between $0.06 and $0.10 per share on a fully diluted basis.

Investor Conference Call
Management will hold a conference call to discuss these results today, Feb. 1 at 1:30 p.m. Pacific time.  Those wishing to join should dial 210-234-0003 and reference the passcode “Symmetricom.”  A live webcast of the conference call will also be available via the company’s web site at www.symmetricom.com.  A replay of the call will be available until Feb. 8 at 11:59 p.m. Pacific time.  To access the replay, please dial 203-369-3416.

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 for next-generation sync network products to replace legacy products, 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, 2006, and subsequent filings with the SEC. Forward-looking statements are made as of the date of this press release and, except as required by law, the company does not undertake an obligation to update its forward-looking statements to reflect future events or circumstances.

Note: Financial schedules attached.

Notes to Consolidated Statements of Operations (000’s) Three Months ended December 31

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

• For the three months ended December 31, 2006, the amortization of purchased technology related to the acquisitions of Datum, TrueTime, Telmax, HP Communications Synchronization Business, Agilent Technologies’ Frequency and Timing Standards product line and Timing Solutions Corporation, which amounted to $835;
• For the three months ended December 31, 2005, 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 $960;
• For the three months ended December 31, 2006, stock based compensation expense of $1,411 after adopting FAS123R;
   For the three months ended December 31, 2005, stock based compensation expense of $1,055 after adopting FAS123R;
• For the three months ended December 31, 2006, integration and restructuring charges related to the acquisition of Timing Solutions Corporation of  $78;
• For the three months ended December 31, 2005, integration and restructuring charges related to the acquisition of  Agilent Technologies’ Frequency and Timing Standards product line of $217;
• For the three months ended December 31, 2006, amortization of other intangibles related to the Datum, TrueTime, Agilent Technologies’ Frequency and Timing Standards product line acquisitions and Timing Solutions Corporation of $143 (from operating expenses);
• For the three months ended December 31, 2005, amortization of other intangibles related to the Datum, TrueTime, Telmax and Agilent Technologies’ Frequency and Timing Standards product line acquisitions of $102 (from operating expenses); and
• For the three months ended December 31, 2006, a charge of $518 for in-process research and development related to the Timing Solutions Corporation acquisition.

(b) The above non-GAAP Statements of Operations assume a quarterly effective income tax rate of 27.5% and 27.0% for the three months ended December 31, 2006, and 2005, respectively.  
Notes to Consolidated Statements of Operations (000’s) Six Months ended December 31

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

• For the six months ended December 31, 2006, the amortization of purchased technology related to the acquisitions of Datum, TrueTime, Telmax, HP Communications Synchronization Business, Agilent Technologies’ Frequency and Timing Standards product line and Timing Solutions Corporation, which amounted to $1,575;
• For the six months ended December 31, 2005, the amortization of purchased technology related to the acquisitions of Datum, TrueTime, Telmax, HP Communications Synchronization Business and Agilent Technologies’ Frequency and Timing product line, which amounted to $2,075;
• For the six months ended December 31, 2006, stock based compensation expense of $2,547 after adopting FAS123R;
• For the six months ended December 31, 2005, stock based compensation expense of $2,348 after adopting FAS123R;
• For the six months ended December 31, 2006, integration and restructuring charges related to the acquisition of Timing Solutions Corporation of  $78;
• For the six months ended December 31, 2005, integration and restructuring charges related to the acquisition of Agilent Technologies’ Frequency and Timing Standards product line of  $343;
• For the six months ended December 31, 2006, amortization of other intangibles related to the Datum, TrueTime, Agilent Technologies’ Frequency and Timing Standards product line and Timing Solutions Corporation acquisitions of $262 (from operating expenses);
• For the six months ended December 31, 2005, amortization of other intangibles related to the Datum, TrueTime and Agilent Technologies’ Frequency and Timing Standards product line acquisitions of $200 (from operating expenses); and
• For the six months ended December 31, 2006, a charge of $518 for in-process research and development related to the Timing Solutions Corporation acquisition.

(d) The above non-GAAP Statements of Operations assume an effective income tax rate of  31.0% and 26.0% for the six months ended December 31, 2006, and 2005, respectively