Voltaire Achieves Profitability

BILLERICA, Mass. and HERZELIYA, Israel -- Voltaire Ltd. (NASDAQ: VOLT), a leading provider of grid backbone solutions, today announced financial results for the three-month period ended September 30, 2007.

Third Quarter Highlights (compared to third quarter 2006):

Revenue for the third quarter of 2007 totaled $15.5 million, an increase of 88% compared to $8.3 million in the third quarter 2006.

GAAP gross profit for the third quarter of 2007 totaled $6.8 million, or 43.6% of revenues, a 138% increase compared to $2.8 million gross profit in the third quarter 2006, or 34.4% of revenues. GAAP operating profit for the third quarter of 2007 totaled $0.2 million, compared to an operating loss of $2.1 million loss in the third quarter of 2006. Net income, before non-cash accretion of redeemable preferred shares, for the third quarter of 2007 was $0.1 million, or $0.01 per diluted share, compared to a net loss of $2.3 million, or $0.18 per diluted share, in the third quarter of 2006.Non-GAAP operating profit for the third quarter of 2007 totaled $0.5 million, compared to a non-GAAP operating loss of $2.0 million in the third quarter of 2006.

Non-GAAP net income for the third quarter of 2007 totaled $0.8 million, or $0.04 per diluted share, compared to a non-GAAP net loss of $2.2 million, or $0.17 per diluted share, in the third quarter 2006.

“Strong demand for our products, particularly our switching solutions, as well as the ongoing success of our premier OEM go-to-market strategy drove robust revenue growth and order traction this quarter,” commented Ronnie Kenneth, Chairman and CEO of Voltaire. “This quarter was also especially significant as, for the first time, we generated net income on strong gross margins and positive cash flow from operations.”

Voltaire Inc.