C-COR Provides Business Update

C-COR Provides Business Update

    Business Editors/High-Tech Writers

    STATE COLLEGE, Pa.--(BUSINESS WIRE)--March 22, 2005--C-COR Incorporated (Nasdaq:CCBL), a global provider of interoperable network solutions for the Internet Protocol (IP) era that include access and transport products, software systems, and technical services, announced that corporate management will discuss business conditions for the third quarter of fiscal year 2005 on a conference call on Wednesday, March 23, 2005, at 9:30 AM (ET). Details on accessing the call are provided at the end of this release.
    Based on a review of preliminary financial results for the third quarter of fiscal year 2005 which ends March 25, 2005, C-COR anticipates that net sales will be between $47 and $49 million. This shortfall from the Company's previous guidance of net sales of between $70 and $75 million is resulting from two main causes:

--	The purchase accounting adjustments to deferred revenue related to the nCUBE acquisition are substantially greater than previously anticipated, and
--	New customer orders are being received too late in the quarter to result in revenue recognition for the quarter.

    C-COR anticipates reporting a loss per diluted share of between $(.34) and $(.38) in the third quarter of fiscal year 2005. These projections include a $2.7 million charge for IPR&D (in-process research and development) resulting from the nCUBE acquisition and $1.7 million related to the amortization of intangible assets, or $.09 per diluted share, which are typically excluded from the First Call analyst projections. C-COR is breaking out these numbers to improve comparability of the projected GAAP results and the non-GAAP First Call number.
    nCUBE Corporation's closing balance sheet at the time of acquisition reflected approximately $20.6 million in deferred revenue, which will be reduced to less than $7 million on C-COR's opening balance sheet as a result of purchase accounting adjustments. C-COR's previous guidance assumed that certain components of the nCUBE deferred revenue would transfer to C-COR's balance sheet at full value based upon an initial interpretation of the relevant accounting literature. After further review, it was determined that these components should be transferred to C-COR's balance sheet at a significantly reduced value. This change adversely affects revenue in the quarter ending March 25, 2005 and, to a lesser extent, revenue in the quarter ending June 24, 2005. C-COR's valuation of the deferred revenue that will be recorded on the opening balance sheet is subject to final review by C-COR's external auditors.
    C-COR anticipates that bookings in the quarter ending March 25, 2005 will be approximately $80 million and ending backlog will be approximately $73 million, taking into account the backlog added by the nCUBE acquisition. The timing of the bookings in the current quarter was such that less revenue will be recognized from these bookings in the quarter than anticipated in C-COR's previous guidance. C-COR management intends to provide revenue and earnings guidance for the quarter ending June 24, 2005 in its earnings release for the third quarter which is scheduled for release on April 21, 2005.
    To participate in the March 23rd conference call, dial 888-214-7573. International callers should use 415-537-1839. The live audio of the conference call will also be available via the Internet at C-COR's Web site (www.c-cor.com). To listen to the live audio, click the appropriate link under the Webcasts title bar on the Home Page of C-COR's Web site.
    If you are unable to participate on the call, a telephone replay will run between 11:30 AM (ET) on Wednesday, March 23, 2005, through 11:30 AM (ET) on Thursday, March 24, 2005. To access this replay, dial 800-633-8284. International callers should use 402-977-9140 for the replay. The reservation number for the telephone replay is 21236325.
    The Webcast replay of the call will also be available via the Internet at C-COR's Web site (www.c-cor.com) following the conference call. To access the Webcast replay, click the appropriate link under the Webcasts title bar on the Home Page of C-COR's Web site.
    Any questions regarding the conference call should be directed to C-COR's Investor Relations office at 814-231-4402 or 814-231-4438.

    About C-COR

    C-COR offers world-class, market-focused business solutions for cable operators, telephone companies, broadcasters, and other private and public sector entities. C-COR's solutions simplify the transition to IP demand-oriented networks by delivering interoperable, modular products in sync with IP network upgrade cycles. The Company's products and services include a suite of software applications that automate the management of content, network, subscribers, and workforce, with more than 200 deployments worldwide; next-generation optical transport products; on demand video systems with implementations in more than 20 countries; and a range of network assurance and technical services that allows operators to design and keep their networks operating at peak performance. Leading network operators through the transition to the on demand IP era, C-COR leverages its dedicated global workforce to deliver solutions for lowering risk, improving profit margins, and effectively managing change. CED Magazine recently named C-COR to its annual "Broadband 50 Companies to Watch." In its February 2005 Research Study, "Telco TV Infrastructure & Service Integrator Opportunities," ABI Research ranked C-COR as the #2 provider of VOD servers in the world based on the criteria of innovation and implementation. C-COR's VOD server offerings were acquired with the purchase of nCUBE in 2004. C-COR's common stock is listed on the Nasdaq National Market (Symbol: CCBL) and is a component of the Russell 2000 Stock Index. For additional information regarding C-COR, visit www.c-cor.com.

    Some of the information presented in this announcement constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent the Company's judgment regarding future events, and are based on currently available information. Although the Company believes it has a reasonable basis for these forward-looking statements, the Company cannot guarantee their accuracy and actual results may differ materially from those the Company anticipated due to a number of known and unknown uncertainties. Factors which could cause actual results to differ from expectations include, among others, capital spending patterns of the communications industry, changes in regard to significant customers, the demand for network integrity, the trend toward more fiber in the network, the Company's ability to develop new and enhanced products, the Company's ability to provide complete network solutions, continued industry consolidation, the development of competing technology, the global demand for the Company's products and services, and the Company's ability to complete and integrate acquisitions and achieve its strategic objectives. For additional information concerning these and other important factors that may cause the Company's actual results to differ materially from expectations and underlying assumptions, please refer to the reports filed by the Company with the Securities and Exchange Commission.

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CONTACT: C-COR Incorporated Investor Relations Sally O. Thiel, 814-231-4402 sthiel@c-cor.com or Media Relations Jo Ann Lehtihet, 814-231-4438 jlehtihet@c-cor.com

KEYWORD: PENNSYLVANIA INDUSTRY KEYWORD: TELECOMMUNICATIONS CONFERENCE CALLS SOURCE: C-COR Incorporated

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