Exhibit 99.1

October 26, 2006
Sally O. Thiel, Director	Jo Ann Lehtihet
Investor Relations	Media Relations
C-COR	C-COR
(814) 231-4402, email: sthiel@c-cor.com	(814) 231-4438, email: jlehtihet@c-cor.com

C-COR REPORTS FINANCIAL RESULTS FOR FIRST QUARTER

OF FISCAL YEAR 2007

State College, PA (October 26, 2006) – C-COR Incorporated (NASDAQ: CCBL) today reported its financial results for the first quarter of fiscal year 2007, ended September 29, 2006. Net sales for the first quarter were $69.6 million compared to $63.5 million for the same period last year. Bookings in the first quarter of fiscal year 2007 were $72.2 million for a book-to-bill ratio of 1.04.

The net income for the first quarter of fiscal year 2007 was $1.6 million, compared to a net loss of $14.8 million for the same period last year. The net income per share on a basic and diluted basis for the first quarter of fiscal year 2007 was $.03 compared to basic and diluted net loss per share of $.31 for the same period last year. C-COR’s results for the first quarter of fiscal year 2007 included $829,000 of amortization related to intangible assets, $400,000 of restructuring charges, a $245,000 loss related to the sale of a product line, and $1.1 million of stock compensation expense. These items, which equate to $.05 on a diluted per share basis, are included in results reported under generally accepted accounting principles (GAAP), but are typically excluded from the analysts’ estimates comprising the First Call consensus number. C-COR is breaking out these numbers to improve comparability of the reported GAAP results and the non-GAAP First Call number.

C-COR anticipates that net sales for the second quarter of fiscal year 2007, ending December 29, 2006, will be between $68.5 and $72.5 million with net earnings per share of between $.03 and $.07. These projections include $829,000 of amortization related to intangible assets, $650,000 of stock compensation expense, and approximately $250,000 of restructuring charges. These items, which are projected to equate to $.03 per diluted share, are typically excluded from the First Call analysts’ projections. C-COR is breaking out these numbers to improve comparability of the projected GAAP results and the non-GAAP First Call number.

C-COR’s management will discuss C-COR’s financial results on a conference call at 9:45 AM (ET) on Thursday, October 26, 2006. For information on how to access the conference call, refer to C-COR’s news release dated October 11, 2006 (posted on the C-COR web site, www.c-cor.com), or contact Investor Relations at 814-231-4402 or 814-231-4438.

About C-COR

C-COR enables its global customer base to confidently grow, manage and deliver next-generation products and services to consumers. The Company’s integrated access and management platforms, with a worldwide installed base valued at over $3.5 billion, deliver highly reliable and flexible voice, video and data, and support quick launch and cost effective scaling of new services. C-COR’s common stock is listed on the NASDAQ Global Market (Symbol: CCBL) and is a component of the Russell 2000 Stock Index. For additional information regarding C-COR, visit www.c-cor.com.

Some of the information presented in this announcement constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent the Company’s judgment regarding future events, and are based on currently available information. Although the Company believes it has a reasonable basis for these forward-looking statements, the Company cannot guarantee their accuracy and actual results may differ materially from those the Company anticipated due to a number of known and unknown uncertainties. Factors which could cause actual results to differ from expectations include, among others, capital spending patterns of the communications industry, changes in regard to significant customers, the demand for network integrity, the trend toward more fiber in the network, the Company’s ability to develop new and enhanced products, the Company’s ability to provide complete network solutions, continued industry consolidation, the development of competing technology, the global demand for the Company’s products and services, the Company’s ability to implement its restructuring and cost reduction measures, and the Company’s ability to complete and integrate acquisitions and achieve its strategic objectives. For additional information concerning these and other important factors that may cause the Company’s actual results to differ materially from expectations and underlying assumptions, please refer to the reports filed by the Company with the Securities and Exchange Commission.

C-COR Incorporated

Condensed Consolidated Statements of Operations

(unaudited, in thousands except per share amounts)

	Thirteen Weeks Ended			Thirteen Weeks Ended
	September 29, 2006			September 23, 2005
Net sales	$	69,586		$	63,494
Cost of sales (1)		43,731			41,865
Excess and obsolete inventory charge		0			6,114
Total cost of sales		43,731			47,979
Gross margin		25,855			15,515
Operating expenses (1)
Selling and administrative		15,251			17,183
Research and product development		7,200			10,600
Amortization of intangibles		829			1,516
Loss on sale of product line		245			0
Restructuring costs		400			383
Total operating expenses		23,925			29,682
Income (loss) from operations		1,930			(14,167	)
Interest expense		(360	)		(320	)
Investment income		695			306
Foreign exchange gain (loss)		30			(134	)
Other income, net		71			67
Income (loss) before income taxes		2,366			(14,248	)
Income tax expense		783			580
Net income (loss)	$	1,583		$	(14,828	)
Net income (loss) per share:
Basic	$	0.03		$	(0.31	)
Diluted	$	0.03		$	(0.31	)
Weighted average common shares and common share equivalents
Basic		48,048			47,804
Diluted		48,529			47,804
_________
(1)    Stock-based compensation is included as follows:
Cost of sales	$	152		$	124
Selling and administrative		764			875
Research and product development		140			214
Total stock-based compensation	$	1,056		$	1,213

C-COR Incorporated

Consolidated Balance Sheets

(in thousands of dollars)

	September 29, 2006		June 30, 2006
	(unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	57,840	$	53,279
Restricted cash		4,073		1,409
Marketable securities		8,214		7,649
Accounts receivable, net		52,336		49,188
Unbilled receivables		3,382		3,308
Inventories		25,712		25,437
Deferred costs		6,037		4,555
Assets held for sale		0		303
Other current assets		4,378		4,239
Total current assets		161,972		149,367
Property, plant and equipment, net		20,292		20,074
Goodwill		130,963		131,209
Other intangible assets, net		4,306		5,135
Deferred taxes		483		497
Other long-term assets		4,838		6,847
Total	$	322,854	$	313,129
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	24,732	$	25,796
Accrued liabilities		27,896		26,423
Deferred revenue		24,754		19,674
Deferred taxes		682		374
Liabilities held for sale		0		415
Current portion of long-term debt		390		299
Total current liabilities		78,454		72,981
Long-term debt, less current portion		36,260		35,966
Deferred revenue		2,626		2,705
Deferred taxes		3,340		2,986
Other long-term liabilities		3,550		3,624
Shareholders’ equity		198,624		194,867
Total	$	322,854	$	313,129

C-COR Incorporated

Financial Data Table

(Unaudited, in thousands except percentages)

	Business Segment
Business Segment:	Business Systems Solutions									Network Services
Product Category:	Access			Solutions			Total			Services			Consolidated
Thirteen Weeks ended September 29, 2006:
Bookings (1)	$	43,353		$	17,024		$	60,377		$	11,774		$	72,151
Net sales		46,037			12,744			58,781			10,805			69,586
Gross margin		16,836			8,126			24,962			893			25,855
Gross margin percentage		36.6	%		63.8	%		42.5	%		8.3	%		37.2	%
Backlog at September 29, 2006 (1):
Less than 12-months		24,984			40,287			65,271			23,385			88,656
Greater than 12-months		—			10,610			10,610			—			10,610
Total Backlog		24,984			50,897			75,881			23,385			99,266
Thirteen Weeks ended September 23, 2005:
Bookings (1)	$	35,524		$	16,122		$	51,646		$	21,572		$	73,218
Net sales		40,783			10,655			51,438			12,056			63,494
Gross margin		8,020			6,170			14,190			1,325			15,515
Gross margin percentage		19.7	%		57.9	%		27.6	%		11.0	%		24.4	%
Backlog at September 23, 2005 (1):
Less than 12-months (2)		23,323			35,548			58,871			28,858			87,729

(1) Amounts derived from our internal operating records.

(2) Our backlog as of September 23, 2005 represented our estimate of backlog that was expected to be realized over a 12-month period and did not reflect total contract backlog.