Fuzebox Software (CLWA) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Investor contacts:

Todd Friedman, Stacie Bosinoff

The Blueshirt Group for CallWave

415-217-7722

todd@blueshirtgroup.com

CallWave Announces Financial Results for Fourth Quarter

and Year End of Fiscal 2006

Santa Barbara, Calif., August 17, 2006 — CallWave, Inc. (Nasdaq: CALL), a leading provider of On-Demand communications services to service providers and consumers, today reported financial results for the fourth quarter and fiscal year ended June 30, 2006.

Total revenue for the fourth quarter of 2006 was $7.7 million compared to $11.6 million reported in the fourth quarter of 2005, primarily due to the expected churn in the dial-up subscriber base. Net loss for the fourth quarter 2006 was $1.1 million, or $(0.05 ) per share, compared to a net income of $2.1 million, or $0.10 per diluted share reported in the fourth quarter of 2005.

Total revenue for fiscal year 2006, was $36.6 million compared to $45.5 million reported in fiscal year 2005. Net loss for fiscal year 2006 was $2.0 million, compared to net income of $11.6 million in the previous year.

CallWave ended fiscal year 2006 with $61 million in cash, cash equivalents, and marketable securities compared with $57.2 million in the prior year. In 2006 CallWave recorded a tax provision of $3.1 million compared to a tax benefit of $2.1 million in 2005.

Dave Hofstatter, President and CEO of CallWave, said, “2006 was an important time for CallWave, highlighted by positive cash flow even as we invested in new convergence opportunities. We are encouraged by the growing convergence of fixed, mobile and internet communications. Our strategy and technology are well aligned with that trend, and we are seeing early market acceptance of our On-Demand technology as a scalable, more flexible deployment option.”

Conference Call Details

The CallWave Fourth Quarter 2006 teleconference and Webcast is scheduled to begin at 5:00 p.m. Eastern Time, on Thursday, August 17, 2006. To access the live Webcast, please visit the investor relations section of the Company’s website http://www.callwave.com at least 30 minutes prior to the scheduled time to download any necessary audio or plug-in software. An audio replay of the call will also be available to investors beginning at 8:00 p.m. ET on August 17, 2006, through August 31, 2006, by dialing (800) 405-2236, or (303) 590-3000, and entering the passcode 11067582#.

About CallWave

CallWave (Nasdaq:CALL) is an On-Demand communications services company, helping service providers reduce customer churn and drive revenues by enabling new landline, Internet and mobile convergence applications. Founded in 1998, CallWave is headquartered in Santa Barbara, California For further information, please visit www.callwave.com.

Safe Harbor Statement

Except for the historical statements contained herein, the foregoing release contains forward-looking statements, including statements regarding, among other matters, our future financial performance. These forward-looking statements are subject to risks and uncertainties, and actual results could differ materially due to several factors, including but not limited to the ability to forecast consumer behavior and recognize or respond to emerging trends, changing preferences or competitive factors, the market acceptance of our new products and product enhancements, claims regarding alleged infringement of third parties’ intellectual property rights, the ability to maintain or expand our customer and partner relationships and other risks and uncertainties. Please consult the various reports and documents filed by CallWave with the U.S. Securities and Exchange Commission, including but not limited to CallWave’s quarterly report for the fiscal quarter ended March 31, 2006, for factors potentially affecting the Company’s future financial results. All forward-looking statements are made as of the date hereof and CallWave disclaims any responsibility to update or revise any forward-looking statement provided in this news release. The results for the fourth quarter of fiscal 2006 are not necessarily indicative of CallWave’s operating results for any future periods.

CallWave is a registered trademark of CallWave, Inc. All other trademarks are the property of their respective holders.

CALLWAVE, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands)

	As of June 30, 2006			As of June 30, 2005
ASSETS
Current assets:
Cash and cash equivalents	$	24,040		$	16,828
Marketable securities		36,907			39,996
Restricted cash		—			335
Accounts receivable; net of allowance for doubtful accounts of $370 and $601		2,834			5,676
Inventory		—			454
Stockholder receivable		52			—
Prepaid income tax		88			113
Other current assets		921			476
Total current assets		64,842			63,878
Property and equipment, net		2,014			2,024
Deferred tax asset		—			2,929
Intangibles, net		533			—
Other assets		66			414
Total assets	$	67,455		$	69,245
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	451		$	801
Accrued payroll		735			1,014
Deferred revenues		92			1,587
Other current liabilities		1,515			1,447
Total current liabilities		2,793			4,849
Stockholders’ equity:
Common stock		72,119			70,296
Deferred compensation		—			(545	)
Other comprehensive loss		(143	)		(24	)
Accumulated deficit		(7,314	)		(5,331	)
Total stockholders’ equity		64,662			64,396
Total liabilities and stockholders’ equity	$	67,455		$	69,245

CALLWAVE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	For the Year Ended June 30,
	2006			2005
Cash flows from operating activities:
Net income (loss)	$	(1,983	)	$	11,602
Operating activity adjustments
Depreciation and amortization		826			801
Stock based compensation expense		543			188
Deferred income taxes		2,929			(1,265	)
Bad debt expense		2,445			1,487
Inventory write off		314			—
Impairment of long lived assets		253			—
Loss on disposal of fixed assets		23			4
Changes in operating assets & liabilities:
Restricted cash		335			—
Accounts receivable, net of bad debt expense		397			(3,473	)
Inventory		140			(454	)
Prepaid income tax		25			(113	)
Other assets		(349	)		116
Accounts payable		(350	)		(444	)
Accrued payroll and other liabilities		(220	)		1,160
Income tax payable		10			(1,158	)
Deferred revenue		(1,495	)		(814	)
Net cash provided by operating activities		3,843			7,637
Cash flows from investing activities:
Purchase of intangible assets		(550	)		—
Net (increase) decrease in marketable securities		2,968			(33,017	)
Purchases of property and equipment		(822	)		(1,086	)
Net cash used in investing activities		1,596			(34,103	)
Cash flows from financing activities:
Exercises of stock options and warrants		1,773			1,882
Proceeds from initial public offering		—			37,200
Costs incurred in initial public offering		—			(1,975	)
Net cash provided by financing activities		1,773			37,107
Net increase in cash and cash equivalents		7,212			10,641
Cash and cash equivalents at beginning of the period		16,828			6,187
Cash and cash equivalents at end of the period	$	24,040		$	16,828

CALLWAVE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

	For the Three Months Ended June 30,						For the Year Ended June 30,
	2006			2005			2006			2005
Revenues	$	7,684		$	11,610		$	36,594		$	45,518
Cost of sales		2,813			3,865			13,088			13,026
Gross profit		4,871			7,745			23,506			32,492
Operating expenses:
Sales and marketing		1,491			1,812			6,293			9,533
Research and development		1,773			1,814			6,805			6,868
General and administrative		3,387			2,470			11,508			7,622
Loss on disposal of fixed assets		33			4			23			4
Total operating expenses		6,684			6,100			24,629			24,027
Operating income (loss)		(1,813	)		1,645			(1,123	)		8,465
Other gains and losses Impairment loss		—			—			(253	)		—
Interest income (expense), net		737			370			2,479			1,032
Income before income taxes		(1,076	)		2,015			1,103			9,497
Income tax provision (benefit)		—			(49	)		3,086			(2,105	)
Net income (loss)	$	(1,076	)	$	2,064		$	(1,983	)	$	11,602
Net income (loss) per share:
Basic	$	(0.05	)	$	0.10		$	(0.10	)	$	0.72
Diluted	$	(0.05	)	$	0.10		$	(0.10	)	$	0.57
Weighted-average common shares outstanding:
Basic		20,733			19,691			20,615			16,171
Diluted		20,733			21,076			20,615			20,295