Acme Packet Reports Record Results for Second Quarter of 2010

BEDFORD, Mass.--(BUSINESS WIRE)-- Acme Packet, Inc. (NASDAQ: APKT), the leader in session border control solutions, today announced record results for the second quarter ended June 30, 2010 and raised its business outlook for 2010.

The Company today raised its full year business outlook for 2010. The Company's outlook is based on the current indications for its business, which may change at any time. The Company will not comment on its business outlook during the quarter unless it is done through an explicit public disclosure.

The Company expects net income on a non-GAAP1 basis to differ from net income on a GAAP basis in 2010 as it is expected to exclude estimated stock-based compensation expense of approximately $10.2 million, or $0.15 per share on a diluted basis, and amortization of acquired intangible assets of approximately $1.2 million, or $0.02 per share on a diluted basis. A reconciliation of the Company's expected GAAP to non-GAAP1 business outlook, and a statement as to the use of non-GAAP1 financial measures, is included at the end of this press release.

The Company's management team plans to host a live conference call and webcast at 5:00 p.m. eastern daylight savings time today to discuss the financial results as well as management's outlook for the business. The conference call may be accessed in the United States by dialing (800) 230-1074 and using access code "APKT". The conference call may be accessed outside of the United States by dialing +1 612.234.9960 and using access code "APKT". The conference call will be simultaneously webcast on the Company's investor relations website, which can be accessed at www.ir.acmepacket.com. A replay of the conference call will be available approximately two hours after the call by dialing (800) 475-6701 and using access code 163908 or by accessing the webcast replay on the Company's investor relations website.

Acme Packet, Inc. (NASDAQ: APKT), the leader in session border control solutions, enables the delivery of trusted, first-class interactive communications-voice, video and multimedia sessions-and data services across IP network borders. Our Net-Net family of session border controllers, multiservice security gateways and session routing proxies supports multiple applications in service provider, enterprise and contact center networks-from VoIP trunking to hosted enterprise and residential services to fixed-mobile convergence. They satisfy critical security, service assurance and regulatory requirements in wireline, cable and wireless networks; and support multiple protocols-SIP, H.323, MGCP/NCS, H.248 and RTSP-and multiple border points-service provider access and interconnect, and enterprise access and trunking. Over 10,000 Acme Packet systems have been deployed by more than 1,105 customers in 105 countries. They include 91 of the top 100 service providers in the world and 11 of the Fortune 25. For more information, contact us at +1 781.328.4400, or visit www.acmepacket.com.

Statements contained herein that are not historical fact (including those in the section "Company Raises Business Outlook for 2010") may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may relate to, among other things, expected financial and operating results, expected growth rates, future stock-based compensation and amortization expenses, and to future business prospects and market conditions. Such forward-looking statements do not constitute guarantees of future performance and are subject to a variety of risks and uncertainties that could cause actual results to differ materially from those anticipated. These include, but are not limited to: the amount of stock-based compensation awarded; the applicable Company stock price used to determine stock-based compensation; difficulties expanding the Company's customer base; difficulties leveraging market opportunities; difficulties providing solutions that meet the needs of customers; poor product sales; long sales cycles; difficulty developing new products; difficulty in relationships with vendors and partners; higher risk in international operations; difficulty managing rapid growth; difficulty managing the Company's financial performance; the ability to hire and retain employees and appropriately staff operations; the Company's cash needs; and the impact of new accounting pronouncements and increased competition. Additional factors that could cause actual results to differ materially from those projected or suggested in any forward-looking statements are contained in the Company's recent filings with the Securities and Exchange Commission, including those factors discussed under the caption "Risk Factors" in such filings.

INDUSTRY KEYWORDS:   Technology  Consumer Electronics  Data Management  Electronic Design Automation  Hardware  Internet  Networks  Software  Audio/Video  Telecommunications  Security  Mobile/Wireless  VoIP