Voltaire Announces Q2 Results

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

Second Quarter Highlights (compared to second quarter 2006):o Revenues increased by 194% to $11.7 million o Gross margin increased to 39.6%, from 37.4% o Steady decline in operating and net loss o Continued penetration into key vertical markets including enterprise data centers o New hardware and software product introductions improving margins

Revenue for the second quarter of 2007 totaled $11.7 million, an increase of 194% compared with $4.0 million in the second quarter 2006.

Gross profit for the second quarter of 2007 totaled $4.6 million, or 39.6% of revenues, an increase compared with $1.5 million gross profit in the second quarter 2006, or 37.4% of revenues.

Operating loss for the second quarter of 2007 totaled $1.3 million, a 59% improvement compared with $3.2 million loss in the second quarter of 2006.Net loss for the second quarter of 2007 was $1.5 million, or $0.10 per diluted share on a GAAP on an as converted basis, a 56% improvement compared with $33 million net loss, or $0.26 per diluted share, in the second quarter of 2006.On a Non-GAAP basis: Excludes the impact of share-based compensation expenses under SFAS 123R and adjustment for fair valuation of warrants under FSP No150-5 Non-GAAP operating loss for the second quarter of 2007 totaled $1.0 million, a 68% improvement compared with a $3.2 million non-GAAP operating loss in the second quarter of 2006.

Non-GAAP net loss for the second quarter of 2007 totaled $1.0 million, or$007 per diluted share, a 68% improvement compared with a non-GAAP net loss of $3.2 million, or $0.25 per diluted share, in the second quarter 2006.

"This has been another strong quarter for Voltaire, in which we generated continued growth in terms of revenues and gross margins, as well as narrowed our operating and net loss, remaining in line with our long term financial model," said Ronnie Kenneth, Chairman and CEO. "During the quarter we shipped our new 20 Gigabits/second switch platform and continued to penetrate growth-oriented vertical markets, signing new customers in the energy, manufacturing and financial services segments. We also deployed our new resource provisioning and management software, GridVision Enterprise, in several test environments."

Voltaire Inc.