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tollgrade is everywhere your broadband network needs to be. TM |
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OUR MISSION |
We help the world communicate reliably by providing unparalleled voice, video and data testing solutions that enable our customers to improve quality, reduce costs and deploy new services in a rapidly changing communications market. |
The global map depicts the broad expanse of Tollgrade’s current deployment of network test solutions for telecom and cable operators. Currently, we help to manage the test process for more than 300 million access lines. This embedded base of Tollgrade test equipment represents an opportunity to upgrade the deployed systems with new IP services testing capabilities.
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in thousands, except per share amount
Gross | Gross Profit | Operating | Operating | Net | Diluted | |||||||||||||||||||
Profit | Percentage | Expense | Income | Income | EPS | |||||||||||||||||||
2005 GAAP Reported Results | $ | 34,682 | 52.3 | % | $ | 31,222 | $ | 3,460 | $ | 3,518 | $ | 0.27 | ||||||||||||
Acquired software write-down | 424 | 0.6 | % | 424 | 310 | 0.02 | ||||||||||||||||||
Retirement expense | (775 | ) | 775 | 566 | 0.04 | |||||||||||||||||||
2005 Non-GAAP Results | $ | 35,106 | 52.9 | % | $ | 30,447 | $ | 4,659 | $ | 4,394 | $ | 0.33 |
in thousands, except per share amount
Gross | Gross Profit | Operating | Operating | Net | Diluted | |||||||||||||||||||
Profit | Percentage | Expense | (Loss) Income | (Loss) Income | EPS | |||||||||||||||||||
2006 GAAP Reported Results | $ | 27,847 | 42.6 | % | $ | 33,649 | $ | (5,802 | ) | $ | (1,834 | ) | $ | (0.14 | ) | |||||||||
Inventory write-down | 4,308 | 6.6 | % | 4,308 | 2,593 | 0.20 | ||||||||||||||||||
Restructuring expense | (1,840 | ) | 1,840 | 1,108 | 0.08 | |||||||||||||||||||
2006 Non-GAAP Results | $ | 32,155 | 49.2 | % | $ | 31,809 | $ | 346 | $ | 1,867 | $ | 0.14 |
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Mark B.Peterson,President and CEO,holding Tollgrade’s newest product development, the DigiTest®ICE™, a cost-effective solution for remote sites delivering telecom Triple Play services. |
Tollgrade’s strategy in 2007 is a continuation of what we began a year ago to strengthen the fundamentals in our core business. We intend to emphasize the following elements of this strategy this year:
1 We will protect our network assurance leadership position by delivering low-cost, high performance access network testing products to the service provider market, and in some cases to meet specific customer project requirements. This will include seeking to enhance our position further by measuring and improving customer service.
2 We plan to leverage our recently expanded global market share to maximize our ability to win tenders for testing new IP services, especially with existing customers.
3 We will expand our reach into new markets by economically exploring, prototyping and testing new applications for our core technology and know-how.
4 We will continue to drive costs out of our products through innovative redesigns and lower cost manufacturing. This will include striving to ensure our R&D investment is correlated with changes in technology and the new market opportunities these changes can bring.
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![/s/ Mark B. Peterson](https://capedge.com/proxy/8-K/0000950152-07-002966/l25498al2549811.gif)
Mark B. Peterson
President and CEO
April, 2007
Partner and Attorney at Law, Reed Smith LLP
Chairman and Private Investor
Chief Marketing Officer, Reed Smith LLP
Chief and Professor of Internal Medicine, Lake
Erie College of Osteopathic Medicine of
Bradenton
Chairman, Executive Vice President, Janney
Montgomery Scott LLC
Retired Chief Financial Officer, Senior Vice
President and Treasurer, SCA North America
(Packaging Division), formerly Tuscarora
Incorporated
President and Chief Executive Officer,
Tollgrade Communications, Inc.
General Counsel and Corporate Secretary
Vice President, Research and Development
Chief Financial Officer and Treasurer
Vice President, Human Resources
President and Chief Executive Officer
Vice President, Marketing
Vice President, Operations
Vice President, Global Sales
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TM “Network Assurance Simplified,”“Tollgrade is everywhere your broadband network needs to be.,” LoopCare, HUB, ICE,
N(x)Test, Cheetah and CheetahXD are trademarks of Tollgrade Communications, Inc.
All other trademarks are the property of their respective owners.
© 2007 Tollgrade Communications, Inc. All rights reserved.
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Tollgrade’s Annual Meeting of Shareholders will be held at 3:00 p.m. on Wednesday, May 16, 2007, at The Syria Shrine Center, 1877 Shriners Way, Cheswick, PA 15024. Notice of the meeting and proxy materials were included with this Annual Report.
The Company’s transfer agent is Mellon Investor Services, LLC Inquiries concerning transfer requirements, lost certificates and change of address should be directed to:
Tollgrade Communications, Inc.
Investor Relations Department
A copy of the Tollgrade Communications, Inc. Form 10-K for 2006, which has been filed with the Securities and Exchange Commission, is included as part of this Annual Report. A copy is also available without attachments at no charge upon written request and is also available at www.tollgrade.com. Inquiries should be directed to the Investor Relations Department.
PricewaterhouseCoopers LLP, Pittsburgh, Pennsylvania.
Tollgrade Communications, Inc. is listed with The NASDAQ Stock Market LLC on the NASDAQ Global Select Market Composite. Symbol: TLGD.
493 Nixon Road, Cheswick, PA15024
1-800-878-3399
www.tollgrade.com
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