Copper Mountain Networks, Inc., (NASDAQ:CMTN) Tuesday announced financial results for the first quarter of 2000. Revenue for the first quarter of 2000 was $60.8 million, an increase of $47.6 million over revenue of $13.2 million for the first quarter of 1999. The first quarter of 2000 revenue represented an increase of $16.2 million, or 36 percent, over the $44.6 million in revenue reported for the fourth quarter of 1999.

During the first quarter of 2000, Copper Mountain completed the acquisition of OnPrem Networks on February 29, 2000, which was accounted for as a purchase for accounting purposes, for a total purchase price of $73.8 million. Included in Copper Mountain's first quarter results is a charge of $6.3 million for the write-off of purchased in-process research and development, $1.9 million for the amortization of purchased intangibles, and $0.1 million for the amortization of deferred compensation as a result of the OnPrem acquisition.

Net income was $13.7 million or $0.24 per diluted share for the first quarter of 2000, compared to a net loss of $1.0 million or a loss of $0.03 per diluted share for the same quarter of the prior year. Included in net income for the first quarter of 2000 is a $7.7 million benefit from the reduction of the Company's deferred tax asset valuation allowance.

Pro forma net income, excluding the stock based compensation charge, the write-off of in-process research and development, the amortization of purchased intangibles, and the effect of the benefit from reducing the Company's deferred tax asset valuation allowance, was $11.3 million or $0.20 per pro forma diluted share for the first quarter of 2000, compared to pro forma net income of $409,000 or $0.01 per pro forma diluted share for the same quarter of the prior year.

                                          Three Months Ended
                                              March 31,
                                   ------------------------------
(in thousands except per share data)      2000           1999

Net revenue                          $  60,824       $ 13,217
Net income (loss)                    $  13,673       $ (1,036)
Pro forma net income                 $  11,266  (1)  $    409  (2)
Diluted net income (loss) per share  $    0.24       $  (0.03) (3)
Pro forma diluted net income per
share                               $    0.20  (1)  $   0.01  (2)

(1) Excludes $1.0 million of stock based compensation, $6.3 million of in-process R&D related to the purchase of OnPrem Networks, $1.9 million in amortization of purchased intangibles, and the resulting income before tax is fully taxed utilizing a 42.0% tax rate. (2) Excludes $1.7 million of stock based compensation and the resulting income before tax is fully taxed utilizing a 42.0% tax rate. (3) Diluted net loss per share for the three months ended March 31, 1999 assumes the conversion of 30,669,648 shares of preferred stock. The preferred stock converted in May 1999.

The pro forma data is presented for informational purposes only and should not be considered as a substitute for the historical financial data presented in accordance with generally accepted accounting principles.

"Our first quarter of fiscal year 2000 reflects a continuation of our leadership position in the market for central office-based DSL solutions," said Rick Gilbert, president and chief executive officer at Copper Mountain. "Our revenue growth of over 360% over the first quarter of 1999 combined with strong profitability reflect our balanced financial model as well as execution and success in our target markets," added Gilbert. "With the acquisition of OnPrem Networks and its complementary products for the business multi-tenant unit (MTU) market, we feel that Copper Mountain has a strong product set to pursue emerging MTU opportunities."

Copper Mountain Networks, Inc. (Nasdaq: CMTN) develops and markets a comprehensive family of DSL solutions that enable high-speed internetworking over existing copper facilities. The Company's mission is to enable carriers and other service providers to offer a full range of high-performance, cost-effective data and voice services over DSL that are easy to deploy, use, and manage. Copper Mountain's CopperRocket CPE family addresses the bandwidth, reliability, ease-of-use, and cost concerns of remote offices and users.