Catapult Communications (CATT) 8-K Other Events

Exhibit 99.1

Information relating to the Company’s results of operations for the three
months and fiscal year ended September 30, 2004

On October 28, 2004, Catapult Communications Corporation reported record revenues of $58 million for the fiscal year ended September 30, 2004, an increase of 28% over fiscal 2003. Net income for the fiscal year ended September 30, 2004 was a record $13.9 million or $0.95 per diluted share. This compares to net income of $4.4 million or $0.33 per diluted share for fiscal year 2003.

For the fourth quarter ended September 30, 2004, revenues were $15.4 million, an increase of 51% over the fourth quarter of fiscal 2003. Net income for the fourth fiscal quarter was $5.5 million or $0.38 per diluted share. This compares to net income of $1.2 million or $0.09 per diluted share in the same quarter the previous year.

Catapult recorded a tax benefit of $1.8 million or $0.12 per diluted share in the fourth quarter of fiscal 2004. This reflects primarily a reduction in accrued tax liability upon the successful completion of an IRS audit. In the fourth quarter of fiscal 2003, a tax benefit of $1.7 million or $0.13 per diluted share was recorded, reflecting the net impact of losses incurred in the U.S. and profits generated in other jurisdictions, as well as an additional $1.5 million in tax benefits from the favorable resolution of international tax issues.

During the fourth quarter of fiscal 2004, Catapult completed a stock offering that included 200,000 primary shares. The offering also included 1,081,250 secondary shares which Tekelec received upon conversion of $17.3 million in notes payable which had been issued as part of the purchase price for Catapult’s acquisition of Tekelec’s network diagnostic business in 2002. The offering also included 437,187 secondary shares sold by Dr. Richard Karp, Catapult’s Chairman and Chief Executive Officer, and by Nancy Karp, a director of Catapult, of which 137,187 shares represented an over-allotment option exercised by the underwriters shortly after quarter end.

Catapult’s combined cash and short-term investment position increased by $6.2 million to $52.7 million in the fourth quarter of 2004. Net proceeds from the offering accounted for $3.0 million of this increase.

Catapult Communications Corporation
CONDENSED CONSOLIDATED STATEMENTS OF INCOME

	Three months ended						Year ended
	September 30,						September 30,
(in thousands, except per share data)	2003			2004			2003			2004
Revenues:
Products	$	7,502		$	12,084		$	35,344		$	45,703
Services		2,704			3,323			9,880			12,315
Total revenues		10,206			15,407			45,224			58,018
Cost of revenues:
Products		1,370			1,430			5,652			5,192
Services		698			1,152			2,825			3,570
Amortization of purchased technology		172			172			686			686
Total cost of revenues		2,240			2,754			9,163			9,448
Gross profit		7,966			12,653			36,061			48,570
Operating expenses:
Research and development		3,107			3,047			13,519			11,740
Sales and marketing		3,605			4,230			14,506			17,075
General and administrative		1,631			1,754			6,679			6,885
Restructuring costs		730			—			730			—
Total operating expenses		9,073			9,031			35,434			35,700
Operating income		(1,107	)		3,622			627			12,870
Interest income, net		104			159			436			480
Other income (expense)		546			(13	)		1,216			148
Income before income taxes		(457	)		3,768			2,279			13,498
Provision for (benefit from) income taxes		(1,682	)		(1,775	)		(2,086	)		(413	)
Net income	$	1,225		$	5,543		$	4,365		$	13,911
Net income per share — basic	$	0.10		$	0.42		$	0.34		$	1.06
Net income per share — diluted	$	0.09		$	0.38		$	0.33		$	0.95
Shares used in per share calculation:
Basic		12,879			13,357			12,948			13,100
Diluted		13,121			14,744			13,113			14,556

Catapult Communications Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30,		September 30,
(In thousands)	2004		2003
ASSETS
Current Assets:
Cash and cash equivalents	$	18,320	$	11,770
Short-term investments		34,350		18,901
Accounts receivable, net		10,110		10,598
Inventory		2,380		2,325
Other current assets		2,623		3,503
Total current assets		67,783		47,097
Property and equipment, net		2,640		3,384
Goodwill and other intangibles		54,466		55,487
Other assets		3,382		1,121
Total assets	$	128,271	$	107,089
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable and accrued liabilities	$	7,048	$	7,218
Deferred revenue — current portion		5,388		5,576
Convertible notes payable		—		17,674
Total current liabilities		12,436		30,468
Deferred Revenue — long-term portion		70
Total stockholders’ equity		115,765		76,621
Total liabilities and stockholders’ equity	$	128,271	$	107,089