8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) August 23, 2007

C-COR Incorporated

(Exact name of Registrant as specified in its charter)

Pennsylvania	0-10726	24-0811591
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

60 Decibel Road, State College, PA	16801
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (814)238-2461

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On August 23, 2007, the Registrant issued a press release announcing its financial results for the fourth quarter and fiscal year ended June 29, 2007 (the “Earnings Release”). A copy of the Earnings Release is furnished as Exhibit 99.1 to this Form 8-K.

On August 23, 2007, the Registrant provided an unaudited breakout of continuing operations and discontinued operations for fiscal years 2006 and 2007 (the “Reclassified Financial Data”) on its website, which it referred to in the Earnings Release and during the conference call held on August 23, 2007 to discuss its financial results for the fourth quarter and fiscal year ended June 29, 2007. The Reclassified Financial Data clarifies the impact of the sale of the Registrant’s Outside Plant and Installation Services business, which was completed during the fourth quarter of fiscal year 2007. The Reclassified Financial Data presents, for fiscal years 2006 and 2007 on a quarterly and annual basis and for fiscal year 2005 on an annual basis, the Registrant’s historical financial results, as determined by generally accepted accounting principles (“GAAP”) and the Registrant’s non-GAAP financial results, which reflect both the discontinued operations reclassification and certain other non-GAAP adjustments to improve comparability of the reported GAAP results and the non-GAAP First Call number (the “Non-GAAP Results”). A reconciliation of the Registrant’s GAAP financial results to the Non-GAAP Results is included in the Reclassified Financial Data.

The management of the Registrant believes that the adjustments to the Non-GAAP Results are useful to the shareholders of the Registrant because they remove items that are typically excluded from the analysts’ estimates comprising the First Call consensus number. The Non-GAAP Results allow investors to evaluate the Registrant’s financial performance from period to period in the same manner that the First Call analysts evaluate the Registrant. Further, the Reclassified Financial Data shows the impact of the discontinued operations reclassification on historical financial results. A copy of the Reclassified Financial Data is furnished as Exhibit 99.2 to this Form 8-K.

The information in this Form 8-K and the Exhibits attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

Number	Description of Document
99.1	Press Release dated August 23, 2007
99.2	Reclassified Financial Data

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	C-COR Incorporated (Registrant)
August 27, 2007	By:	/s/ Joseph E. Zavacky
	Name:	Joseph E. Zavacky
	Title:	Controller and Assistant Secretary

3

EX-99.1

Exhibit 99.1

August 23, 2007
Sally O. Thiel, Director	Jo Ann Lehtihet
Investor Relations	Corporate Public 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 FOURTH QUARTER

AND FISCAL YEAR 2007

State College, PA (August 23, 2007)—C-COR Incorporated (NASDAQ: CCBL) today reported its financial results for the fourth quarter and fiscal year 2007, ended June 29, 2007.

As previously reported, C-COR completed the sale of its Outside Plant and Installation Services business during the fourth quarter of fiscal year 2007, and will begin reporting the results of operations and the sale of this business as a discontinued operation. This change affects C-COR’s previously reported financial results as well as the current quarter results, all of which will now be reported in two components, continuing operations and discontinued operations. C-COR is providing an unaudited breakout of its fiscal year 2006 and 2007 quarterly results from continuing operations on its website for analysis purposes:

(http://www.c-cor.com/about/ir/financial/reclassified_financial_data/)

Please note that not all of the analysts’ reports comprising the First Call historical results for fiscal years 2006 and 2007 have been updated to reflect results from continuing operations. As a result, C-COR’s reported financial results – particularly with respect to net sales – are not comparable to the First Call consensus numbers for the full fiscal year 2007.

Net sales from continuing operations for the fourth quarter were $74.4 million compared to $59.6 million in the same period last year and $73 million last quarter. Bookings in the fourth quarter of fiscal year 2007 were $68.6 million for a book-to-bill ratio of ..92. Net sales from continuing operations for the entire fiscal year 2007 were $277.3 million compared to $213.9

-MORE-

C-COR REPORTS FINANCIAL RESULTS FOR FOURTH QUARTER

AND FISCAL YEAR 2007 - ADD 1

million in fiscal year 2006. Bookings for the entire fiscal year 2007 were $292.2 million for a book-to-bill ratio of 1.05. The financial results for the fourth quarter and fiscal year 2006 included one additional week of operations compared to the fiscal year 2007 periods.

Income from continuing operations for the fourth quarter of fiscal year 2007 was $8.2 million, compared to $9.9 million for the same period last year. Included in income from continuing operations for the fourth quarter of fiscal year 2006 were a $9.7 million gain on the sale of trade claims in the bankruptcy cases of Adelphia and its affiliates and a $1.2 million gain on a litigation judgment. Income per share from continuing operations on a diluted basis for the fourth quarter of fiscal year 2007 was $.16 compared to $.20 for the same period last year. C-COR’s results from continuing operations for the fourth quarter of fiscal year 2007 included $1.4 million of stock compensation expense, $799,000 of amortization related to intangible assets, and $180,000 of restructuring charges. These items, which equate to $.04 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 from continuing operations for the first quarter of fiscal year 2008, ending September 28, 2007, will be between $70.0 and $74.0 million with earnings per share from continuing operations of between $.08 and $.12. These forecasts include approximately $650,000 of amortization related to intangible assets, $2.7 million of stock compensation expense, and $200,000 of restructuring charges. These items, which are projected to equate to $.07 per diluted share, are typically excluded from the First Call analysts’

-MORE-

C-COR REPORTS FINANCIAL RESULTS FOR FOURTH QUARTER

AND FISCAL YEAR 2007 - ADD 2

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, August 23, 2007. To participate in the August 23rd call, dial 800-926-4402. International callers should use +1 212-231-2900. The live audio of the conference call will also be available via the Internet at C-COR’s web site (www.c-cor.com). For information on how to access the live audio and replay of the conference call, refer to C-COR’s news release dated April 4, 2007 (posted on the C-COR web site), or contact Investor Relations at 814-231-4402 or 814-231-4438.

About C-COR

C-COR technology and know-how are at the heart of today’s personalized, multi-screen communications and entertainment. The largest cable operators and other private and public network operators around the world look to C-COR for broadband access equipment to expand bandwidth, unified video platforms for delivery of on demand content, and integrated back-office OSS for a 360 degree view of the network, subscribers and workforce. 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 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.

-MORE-

C-COR REPORTS FINANCIAL RESULTS FOR FOURTH QUARTER

AND FISCAL YEAR 2007 - ADD 3

C-COR Incorporated

Condensed Consolidated Statements of Operations

(unaudited, in thousands except per share amounts)

	Thirteen Weeks Ended June 29, 2007			Fourteen Weeks Ended June 30, 2006			Fifty-two Weeks Ended June 29, 2007			Fifty-three Weeks Ended June 30, 2006
Net sales	$	74,425		$	59,569		$	277,329		$	213,946
Cost of sales (1)		39,867			32,573			151,958			126,397
Excess and obsolete inventory charge		0			244			0			8,598
Total cost of sales		39,867			32,817			151,958			134,995
Gross margin		34,558			26,752			125,371			78,951
Operating expenses (1)
Selling and administrative		17,555			17,741			62,987			65,398
Research and product development		8,282			8,744			32,512			38,203
Amortization of other intangibles		799			885			3,286			4,591
Impairment charges (recovery)		0			(112	)		0			7,010
Loss (gain) on sale of product lines		0			18			245			(1,952	)
Restructuring costs		180			1,546			960			6,583
Total operating expenses		26,816			28,822			99,990			119,833
Income (loss) from operations		7,742			(2,070	)		25,381			(40,882	)
Interest expense		(350	)		(360	)		(1,434	)		(1,350	)
Investment income		1,337			920			3,760			2,001
Foreign exchange gain (loss)		(40	)		30			(166	)		248
Gain on sale of bankruptcy trade claims		0			9,715			0			9,715
Other income, net		40			2,656			429			3,135
Income (loss) before income taxes		8,729			10,891			27,970			(27,133	)
Income tax expense		494			1,005			2,791			2,939
Income (loss) from continuing operations		8,235			9,886			25,179			(30,072	)
Discontinued operations, net of tax
Income (loss) from discontinued operations		511			1,295			(1,626	)		2,766
Gain on sale of discontinued operations		4,810			0			4,810			0
Net income (loss)	$	13,556		$	11,181		$	28,363		$	(27,306	)
Net income (loss) per share: basic
Continuing operations	$	0.16		$	0.20		$	0.52		$	(0.63	)
Discontinued operations		0.11			0.03			0.06			0.06
Net income (loss)	$	0.27		$	0.23		$	0.58		$	(0.57	)
Net income (loss) per share: diluted
Continuing operations	$	0.16		$	0.20		$	0.50		$	(0.63	)
Discontinued operations		0.10			0.02			0.06			0.06
Net income (loss)	$	0.26		$	0.22		$	0.56		$	(0.57	)
Weighted average common shares and common share equivalents
Basic		49,670			47,999			48,762			47,891
Diluted		53,670			51,292			52,565			47,891
(1) Stock-based compensation is included as follows:
Cost of sales	$	132		$	87		$	327		$	249
Selling and administrative		906			699			2,803			2,800
Research and product development		319			210			658			618
Total stock-based compensation	$	1,357		$	996		$	3,788		$	3,667

-MORE-

C-COR REPORTS FINANCIAL RESULTS FOR FOURTH QUARTER

AND FISCAL YEAR 2007 - ADD 4

C-COR Incorporated

Consolidated Balance Sheets

(in thousands of dollars)

	June 29, 2007		March 30, 2007		June 30, 2006
	(unaudited)		(unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	54,856	$	44,447	$	44,658
Restricted cash		2,620		3,594		1,409
Marketable securities		53,453		47,108		16,270
Accounts receivable, net		63,375		58,014		49,188
Unbilled receivables		2,268		2,908		3,308
Inventories		28,150		36,009		25,437
Deferred costs		8,476		7,848		4,555
Assets held for sale		0		0		303
Other current assets		4,270		3,185		4,239
Total current assets		217,468		203,113		149,367
Property, plant and equipment, net		19,217		20,359		20,074
Goodwill		129,518		131,034		131,209
Other intangible assets, net		1,849		2,648		5,135
Deferred taxes		222		424		497
Other long-term assets		7,754		5,675		6,847
Total	$	376,028	$	363,253	$	313,129
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	20,698	$	27,820	$	25,796
Accrued liabilities		31,371		32,490		26,423
Deferred revenue		32,534		29,984		19,674
Deferred taxes		1,317		1,317		374
Liabilities held for sale		0		0		415
Current portion of long-term debt		384		378		299
Total current liabilities		86,304		91,989		72,981
Long-term debt, less current portion		35,968		36,064		35,966
Deferred revenue		3,892		4,472		2,705
Deferred taxes		3,067		3,078		2,986
Other long-term liabilities		5,615		4,861		3,624
Shareholders’ equity		241,182		222,789		194,867
Total	$	376,028	$	363,253	$	313,129

-MORE-

C-COR REPORTS FINANCIAL RESULTS FOR FOURTH QUARTER

AND FISCAL YEAR 2007 - ADD 5

C-COR Incorporated

Financial Data Table

(Unaudited, in thousands except percentages)

	Business Segment
Business Segment:	Broadband Systems Solutions						Total			Network Services			Consolidated
Product Category:	Access			Solutions						Services
Thirteen Weeks ended June 29, 2007:
Bookings (1)	$	52,880		$	15,552		$	68,432		$	190		$	68,622
Net sales		57,240			15,905			73,145			1,280			74,425
Gross margin		24,867			9,167			34,034			524			34,558
Gross margin percentage		43.4	%		57.6	%		46.5	%		40.9	%		46.4	%
Backlog at June 29, 2007 (1):
Less than 12 months		30,188			43,003			73,191			779			73,970
Greater than 12 months		0			18,337			18,337			0			18,337
Total Backlog		30,188			61,340			91,528			779			92,307
Fourteen Weeks ended June 30, 2006:
Bookings (1)	$	46,045		$	11,326		$	57,371		$	3,465		$	60,836
Net sales		45,039			12,807			57,846			1,723			59,569
Gross margin		19,327			6,620			25,947			805			26,752
Gross margin percentage		42.9	%		51.7	%		44.9	%		46.7	%		44.9	%
Backlog at June 30, 2006 (1):
Less than 12 months		27,668			36,234			63,902			3,195			67,097
Greater than 12 months		0			10,383			10,383			0			10,383
Total Backlog		27,668			46,617			74,285			3,195			77,480
Fifty-two Weeks ended June 29, 2007:
Bookings (1)	$	213,973		$	74,779		$	288,752		$	3,404		$	292,156
Net sales		211,453			60,056			271,509			5,820			277,329
Gross margin		87,084			36,228			123,312			2,059			125,371
Gross margin percentage		41.2	%		60.3	%		45.4	%		35.4	%		45.2	%
Backlog at June 29, 2007 (1)
Less than 12 months		30,188			43,003			73,191			779			73,970
Greater than 12 months		0			18,337			18,337			0			18,337
Total Backlog		30,188			61,340			91,528			779			92,307
Fifty-three weeks ended June 30, 2006:
Bookings (1)	$	159,963		$	65,455		$	225,418		$	6,990		$	232,408
Net sales		157,991			51,639			209,630			4,316			213,946
Gross margin		51,785			25,418			77,203			1,748			78,951
Gross margin percentage		32.8	%		49.2	%		36.8	%		40.5	%		36.9	%
Backlog at June 30, 2006 (1)
Less than 12 months		27,668			36,234			63,902			3,195			67,097
Greater than 12 months		0			10,383			10,383			0			10,383
Total Backlog		27,668			46,617			74,285			3,195			77,480

(1) Amounts derived from our internal operating records.

#####

EX-99.2

Exhibit 99.2

C-COR Incorporated

Consolidated Statements of Operations - GAAP Basis

(unaudited, in thousands except per share amounts)

	Fiscal Year 2007															Fiscal Year 2006
	Reclassified September 29, 2006			Reclassified December 29, 2006			Reclassified March 30, 2007			Reclassified June 29, 2007			Reclassified Fiscal Year 2007			Reclassified September 23, 2005			Reclassified December 23, 2005			Reclassified March 24, 2006			Reclassified June 30, 2006			Reclassified Fiscal Year 2006			Reclassified Fiscal Year 2005
Net sales:
Products	$	46,037		$	51,916		$	56,260		$	57,240		$	211,453		$	40,783		$	36,404		$	35,765		$	45,039		$	157,991		$	173,225
Content and operations management systems		12,744			15,871			15,536			15,905			60,056			10,655			17,617			10,560			12,807			51,639			23,943
Services		1,585			1,731			1,224			1,280			5,820			856			678			1,059			1,723			4,316			2,159
Total net sales		60,366			69,518			73,020			74,425			277,329			52,294			54,699			47,384			59,569			213,946			199,327
Cost of sales:
Products		29,201			31,085			31,710			32,373			124,369			26,649			23,719			21,772			25,468			97,608			102,708
Content and operations management systems		4,618			5,908			6,564			6,738			23,828			4,485			9,444			6,105			6,187			26,221			12,594
Services		974			989			1,042			756			3,761			518			485			647			918			2,568			1,937
Excess and obsolete inventory change		—			—			—			—			—			6,114			1,622			618			244			8,598			—
Total cost of sales		34,793			37,982			39,316			39,867			151,958			37,766			35,270			29,142			32,817			134,995			117,239
Gross margin		25,573			31,536			33,704			34,558			125,371			14,528			19,429			18,242			26,752			78,951			82,088
Gross margin%		42.4	%		45.4	%		46.2	%		46.4	%		45.2	%		27.8	%		35.5	%		38.5	%		44.9	%		36.9	%		41.2	%
Operating expenses:
Selling and administrative		14,397			15,209			15,826			17,555			62,987			16,414			17,238			14,005			17,741			65,398			59,831
Research and product development		7,200			8,308			8,722			8,282			32,512			10,600			9,972			8,887			8,744			38,203			37,804
Amortization of other intangibles		829			829			829			799			3,286			1,516			1,278			912			885			4,591			5,697
Impairment charges		—			—			—			—			—			—			5,330			1,792			(112	)		7,010			—
Acquired in-process technology charge		—			—			—			—			—			—			—			—			—			—			5,850
Loss (gain) on sale of product lines		245			—			—			—			245			—			—			(1,970	)		18			(1,952	)		—
Restructuring costs		400			200			180			180			960			383			1,367			3,287			1,546			6,583			993
Total operating expenses		23,071			24,546			25,557			26,816			99,990			28,913			35,185			26,913			28,822			119,833			110,175
Income (loss) from operations		2,502			6,990			8,147			7,742			25,381			(14,385	)		(15,756	)		(8,671	)		(2,070	)		(40,882	)		(28,087	)
Interest expense		(360	)		(365	)		(359	)		(350	)		(1,434	)		(320	)		(329	)		(341	)		(360	)		(1,350	)		(680	)
Investment income		695			800			928			1,337			3,760			306			317			458			920			2,001			1,322
Foreign exchange gain (loss)		30			114			(270	)		(40	)		(166	)		(134	)		(113	)		465			30			248			235
Gain on sale of bankruptcy trade claims		—			—			—			—			—			—			—			—			9,715			9,715			—
Other income (expense), net		71			14			304			40			429			67			235			177			2,656			3,135			(282	)
Income (loss) before income taxes		2,938			7,553			8,750			8,729			27,970			(14,466	)		(15,646	)		(7,912	)		10,891			(27,133	)		(27,492	)
Income tax expense (benefit)		764			846			687			494			2,791			563			716			655			1,005			2,939			(1,059	)
Income (loss) from continuing operations		2,174			6,707			8,063			8,235			25,179			(15,029	)		(16,362	)		(8,567	)		9,886			(30,072	)		(26,433	)
Discontinued operations, net of tax
Income (loss) from discontinued operations		(591	)		(844	)		(702	)		511			(1,626	)		201			651			619			1,295			2,766			743
Gain on sale of discontinued operations		—			—			—			4,810			4,810			—			—			—			—			—			—
Net income (loss)	$	1,583		$	5,863		$	7,361		$	13,556		$	28,363		($	14,828	)	($	15,711	)	($	7,948	)	$	11,181		($	27,306	)	($	25,690	)
Net income (loss) per share - basic:
Continuing operations	$	0.04		$	0.14		$	0.16		$	0.16		$	0.52		$	(0.31	)	$	(0.34	)	$	(0.18	)	$	0.20		$	(0.63	)	$	(0.58	)
Discontinued operations		(0.01	)		(0.02	)		(0.01	)		0.11			0.06			0.00			0.01			0.01			0.03			0.06			0.01
Net income (loss)	$	0.03		$	0.12		$	0.15		$	0.27		$	0.58		$	(0.31	)	$	(0.33	)	$	(0.17	)	$	0.23		$	(0.57	)	$	(0.57	)
Net income (loss) per share - diluted:
Continuing operations		0.04			0.14			0.16			0.16			0.50			(0.31	)		(0.34	)		(0.18	)		0.20			(0.63	)		(0.58	)
Discontinued operations		(0.01	)		(0.02	)		(0.02	)		0.10			0.06			0.00			0.01			0.01			0.02			0.06			0.01
Net income (loss)	$	0.03		$	0.12		$	0.14		$	0.26		$	0.56		$	(0.31	)	$	(0.33	)	$	(0.17	)	$	0.22		$	(0.57	)	$	(0.57	)
Weighted average common shares and common share equivalents
Basic		48,048			48,248			49,080			49,670			48,762			47,804			47,867			47,896			47,999			47,891			45,325
Diluted		48,529			52,031			53,191			53,670			52,565			47,804			47,867			47,896			51,292			47,891			45,325

C-COR Incorporated

Continuing Operations - Presented on a Non-GAAP basis

(unaudited, in thousands except per share amounts)

	Fiscal Year 2007															Fiscal Year 2006
	September 29, 2006			December 29, 2006			March 30, 2007			June 29, 2007			Fiscal Year 2007			September 23, 2005			December 23, 2005			March 24, 2006			June 30, 2006			Fiscal Year 2006			Fiscal Year 2005
Net sales:
Products	$	46,037		$	51,916		$	56,260		$	57,240		$	211,453		$	40,783		$	36,404		$	35,765		$	45,039		$	157,991		$	173,225
Content and operations management systems		12,744			15,871			15,536			15,905			60,056			10,655			17,617			10,560			12,807			51,639			23,943
Services		1,585			1,731			1,224			1,280			5,820			856			678			1,059			1,723			4,316			2,159
Total net sales		60,366			69,518			73,020			74,425			277,329			52,294			54,699			47,384			59,569			213,946			199,327
Cost of sales:
Products		29,128			31,058			31,691			32,285			124,162			26,600			23,690			21,746			25,417			97,453			102,708
Content and operations management systems		4,591			5,890			6,534			6,693			23,708			4,456			9,436			6,085			6,152			26,129			12,594
Services		974			989			1,042			756			3,761			518			485			647			918			2,568			1,937
Excess and obsolete inventory change		—			—			—			—			—			—			—			—			—			—			—
Total cost of sales		34,693			37,937			39,267			39,734			151,631			31,574			33,611			28,478			32,487			126,150			117,239
Gross margin		25,673			31,581			33,753			34,691			125,698			20,720			21,088			18,906			27,082			87,796			82,088
Gross margin %		42.5	%		45.4	%		46.2	%		46.6	%		45.3	%		39.6	%		38.6	%		39.9	%		45.5	%		41.0	%		41.2	%
Operating expenses:
Selling and administrative		13,649			14,447			15,439			16,649			60,184			15,554			16,343			13,659			17,042			62,598			59,831
Research and product development		7,060			8,200			8,631			7,963			31,854			10,386			9,818			8,847			8,534			37,585			37,804
Total operating expenses		20,709			22,647			24,070			24,612			92,038			25,940			26,161			22,506			25,576			100,183			97,635
Income (loss) from operations		4,964			8,934			9,683			10,079			33,660			(5,220	)		(5,073	)		(3,600	)		1,506			(12,387	)		(15,547	)
Interest expense (benefit)		(360	)		(365	)		(359	)		(350	)		(1,434	)		(320	)		(329	)		(341	)		(360	)		(1,350	)		(680	)
Investment income		695			800			928			1,337			3,760			306			317			458			920			2,001			1,322
Foreign exchange gain (loss)		30			114			(270	)		(40	)		(166	)		(134	)		(113	)		465			30			248			235
Other income (expense), net		71			14			304			40			429			67			235			177			1,418			1,897			(282	)
Income (loss) before income taxes		5,400			9,497			10,286			11,066			36,249			(5,301	)		(4,963	)		(2,841	)		3,514			(9,591	)		(14,952	)
Income tax expense		764			846			687			494			2,791			563			716			655			1,005			2,939			(1,059	)
Income (loss) from continuing operations	$	4,636		$	8,651		$	9,599		$	10,572		$	33,458		$	(5,864	)	$	(5,679	)	$	(3,496	)	$	2,509		$	(12,530	)	$	(13,893	)
Income (loss) per share from continuing operations:
Basic	$	0.10		$	0.18		$	0.20		$	0.21		$	0.69		$	(0.12	)	$	(0.12	)	$	(0.07	)	$	0.05		$	(0.26	)	$	(0.31	)
Diluted	$	0.10		$	0.18		$	0.19		$	0.20		$	0.66		$	(0.12	)	$	(0.12	)	$	(0.07	)	$	0.05		$	(0.26	)	$	(0.31	)
Weighted average common shares and common share equivalents
Basic		48,048			48,248			49,080			49,670			48,762			47,804			47,867			47,896			47,999			47,891			45,325
Diluted		48,529			52,031			53,191			53,670			52,565			47,804			47,867			47,896			51,292			47,891			45,325

C-COR Incorporated

Continuing Operations - Presented on a Non-GAAP basis

(unaudited, in thousands except per share amounts)

	Q1-FY07
	Historical September 29, 2006			Discontinued Operations Reclass			Non-GAAP Adjustments			Notes		Non-GAAP September 29, 2006
Net sales:
Products	$	46,037		$	—							$	46,037
Content and operations management systems		12,744			—								12,744
Services		10,805			9,220								1,585
Total net sales		69,586			9,220								60,366
Cost of sales:
Products		29,201			—			73		(1	)		29,128
Content and operations management systems		4,618			—			27		(1	)		4,591
Services		9,912			8,938			—					974
Excess and obsolete inventory change		—			—			—		(2	)		—
Total cost of sales		43,731			8,938			100					34,693
Gross margin		25,855			282			(100	)				25,673
Gross margin %		37.2	%		3.1	%							42.5	%
Operating expenses:
Selling and administrative		15,251			854			748		(1	)		13,649
Research and product development		7,200			—			140		(1	)		7,060
Amortization of other intangibles		829			—			829		(3	)		—
Impairment charges		—			—					(4	)		—
Acquired in-process technology charge		—			—					(5	)		—
Loss (gain) on sale of product lines		245			—			245		(6	)		—
Restructuring costs		400			—			400		(7	)		—
Total operating expenses		23,925			854			2,362					20,709
Income (loss) from operations		1,930			(572	)		(2,462	)				4,964
Interest expense		(360	)		—								(360	)
Investment income		695			—								695
Foreign exchange gain (loss)		30			—								30
Gain on sale of bankruptcy trade claims		—			—					(8	)		—
Other income (expense), net		71			—					(9	)		71
Income (loss) before income taxes		2,366			(572	)		(2,462	)				5,400
Interest expense (benefit)		783			19								764
Income (loss) from continuing operations	$	1,583		$	(591	)	$	(2,462	)			$	4,636
Income (loss) per share from continuing operations:
Basic	$	0.03										$	0.10
Diluted	$	0.03										$	0.10
Weighted average common shares and common share equivalents
Basic		48,048											48,048
Diluted		48,529											48,529

Notes - Non GAAP adjustments:

(1) - Stock-based compensation

(2) - Excess and obsolete inventory charges

(3) - Amortization of intangibles

(4) - Impairment charges

(5) - Acquired in-process technology charge

(6) - Loss (gain) on sale of product lines

(7) - Restructuring costs

(8) - Gain on sale of bankruptcy trade claims

(9) - Gain on litigation judgment

C-COR Incorporated

Continuing Operations - Presented on a Non-GAAP basis

(unaudited, in thousands except per share amounts)

	Q2-FY07
	Historical December 29, 2006			Discontinued Operations Reclass			Non-GAAP Adjustments			Notes		Non-GAAP December 29, 2006
Net sales:
Products	$	51,916		$	—							$	51,916
Content and operations management systems		15,871			—								15,871
Services		12,347			10,616								1,731
Total net sales		80,134			10,616								69,518
Cost of sales:
Products		31,085			—			27		(1	)		31,058
Content and operations management systems		5,908			—			18		(1	)		5,890
Services		11,480			10,491			—					989
Excess and obsolete inventory change		—			—			—		(2	)		—
Total cost of sales		48,473			10,491			45					37,937
Gross margin		31,661			125			(45	)				31,581
Gross margin %		39.5	%		1.2	%							45.4	%
Operating expenses:
Selling and administrative		15,896			687			762		(1	)		14,447
Research and product development		8,308			—			108		(1	)		8,200
Amortization of other intangibles		829			—			829		(3	)		—
Impairment charges		—			—					(4	)		—
Acquired in-process technology charge		—			—					(5	)		—
Loss (gain) on sale of product lines		—			—					(6	)		—
Restructuring costs		461			261			200		(7	)		—
Total operating expenses		25,494			948			1,899					22,647
Income (loss) from operations		6,167			(823	)		(1,944	)				8,934
Interest expense		(365	)		—								(365	)
Investment income		800			—								800
Foreign exchange gain (loss)		114			—								114
Gain on sale of bankruptcy trade claims		—			—					(8	)		—
Other income (expense), net		14			—					(9	)		14
Income (loss) before income taxes		6,730			(823	)		(1,944	)				9,497
Interest expense (benefit)		867			21								846
Income (loss) from continuing operations	$	5,863		$	(844	)	$	(1,944	)			$	8,651
Income (loss) per share from continuing operations:
Basic	$	0.12										$	0.18
Diluted	$	0.12										$	0.18
Weighted average common shares and common share equivalents
Basic		48,248											48,248
Diluted		52,031											52,031

Notes - Non GAAP adjustments:

(1) - Stock-based compensation

(2) - Excess and obsolete inventory charges

(3) - Amortization of intangibles

(4) - Impairment charges

(5) - Acquired in-process technology charge

(6) - Loss (gain) on sale of product lines

(7) - Restructuring costs

(8) - Gain on sale of bankruptcy trade claims

(9) - Gain on litigation judgment

C-COR Incorporated

Continuing Operations - Presented on a Non-GAAP basis

(unaudited, in thousands except per share amounts)

	Q3-FY07
	Historical March 30, 2007			Discontinued Operations Reclass			Non-GAAP Adjustments			Notes		Non-GAAP March 30, 2007
Net sales:
Products	$	56,260		$	—							$	56,260
Content and operations management systems		15,536			—								15,536
Services		10,897			9,673								1,224
Total net sales		82,693			9,673								73,020
Cost of sales:
Products		31,710			—			19		(1	)		31,691
Content and operations management systems		6,564			—			30		(1	)		6,534
Services		10,009			8,967			—					1,042
Excess and obsolete inventory change		—			—			—		(2	)		—
Total cost of sales		48,283			8,967			49					39,267
Gross margin		34,410			706			(49	)				33,753
Gross margin %		41.6	%		7.3	%							46.2	%
Operating expenses:
Selling and administrative		16,523			697			387		(1	)		15,439
Research and product development		8,722			—			91		(1	)		8,631
Amortization of other intangibles		829			—			829		(3	)		—
Impairment charges		—			—					(4	)		—
Acquired in-process technology charge		—			—					(5	)		—
Loss (gain) on sale of product lines		—			—					(6	)		—
Restructuring costs		870			690			180		(7	)		—
Total operating expenses		26,944			1,387			1,487					24,070
Income (loss) from operations		7,466			(681	)		(1,536	)				9,683
Interest expense		(359	)		—								(359	)
Investment income		928			—								928
Foreign exchange gain (loss)		(270	)		—								(270	)
Gain on sale of bankruptcy trade claims		—			—					(8	)		—
Other income (expense), net		304			—					(9	)		304
Income (loss) before income taxes		8,069			(681	)		(1,536	)				10,286
Interest expense (benefit)		708			21								687
Income (loss) from continuing operations	$	7,361		$	(702	)	$	(1,536	)			$	9,599
Income (loss) per share from continuing operations:
Basic	$	0.15										$	0.20
Diluted	$	0.14										$	0.19
Weighted average common shares and common share equivalents
Basic		49,080											49,080
Diluted		53,191											53,191

Notes - Non GAAP adjustments:

(1) - Stock-based compensation

(2) - Excess and obsolete inventory charges

(3) - Amortization of intangibles

(4) - Impairment charges

(5) - Acquired in-process technology charge

(6) - Loss (gain) on sale of product lines

(7) - Restructuring costs

(8) - Gain on sale of bankruptcy trade claims

(9) - Gain on litigation judgment

C-COR Incorporated

Continuing Operations - Presented on a Non-GAAP basis

(unaudited, in thousands except per share amounts)

	Q4-FY07
	Historical June 29, 2007			Discontinued Operations Reclass			Non-GAAP Adjustments			Notes		Non-GAAP June 29, 2007
Net sales:
Products	$	57,240		$	—							$	57,240
Content and operations management systems		15,905			—								15,905
Services		13,154			11,874								1,280
Total net sales		86,299			11,874								74,425
Cost of sales:
Products		32,373			—			88		(1	)		32,285
Content and operations management systems		6,738			—			45		(1	)		6,693
Services		11,307			10,551			—					756
Excess and obsolete inventory change		—			—			—		(2	)		—
Total cost of sales		50,418			10,551			133					39,734
Gross margin		35,881			1,323			(133	)				34,691
Gross margin %		41.6	%		11.1	%							46.6	%
Operating expenses:
Selling and administrative		18,288			733			906		(1	)		16,649
Research and product development		8,282			—			319		(1	)		7,963
Amortization of other intangibles		799			—			799		(3	)		—
Impairment charges		—			—					(4	)		—
Acquired in-process technology charge		—			—					(5	)		—
Loss (gain) on sale of product lines		—			—					(6	)		—
Restructuring costs		271			91			180		(7	)		—
Total operating expenses		27,640			824			2,204					24,612
Income (loss) from operations		8,241			499			(2,337	)				10,079
Interest expense		(350	)		—								(350	)
Investment income		1,337			—								1,337
Foreign exchange gain (loss)		(41	)		(1	)							(40	)
Gain on sale of bankruptcy trade claims		—			—					(8	)		—
Other income (expense), net		4,884			4,844					(9	)		40
Income (loss) before income taxes		14,071			5,342			(2,337	)				11,066
Interest expense (benefit)		515			21			0					494
Income (loss) from continuing operations	$	13,556		$	5,321		$	(2,337	)			$	10,572
Income (loss) per share from continuing operations:
Basic	$	0.27										$	0.21
Diluted	$	0.26										$	0.20
Weighted average common shares and common share equivalents
Basic		49,670											49,670
Diluted		53,670											53,670

Notes - Non GAAP adjustments:

(1) - Stock-based compensation

(2) - Excess and obsolete inventory charges

(3) - Amortization of intangibles

(4) - Impairment charges

(5) - Acquired in-process technology charge

(6) - Loss (gain) on sale of product lines

(7) - Restructuring costs

(8) - Gain on sale of bankruptcy trade claims

(9) - Gain on litigation judgment

C-COR Incorporated

Continuing Operations - Presented on a Non-GAAP basis

(unaudited, in thousands except per share amounts)

	FY 2007
	Historical June 29, 2007			Discontinued Operations Reclass			Non-GAAP Adjustments			Notes		Non-GAAP June 29, 2007
Net sales:
Products	$	211,453		$	—		$	—				$	211,453
Content and operations management systems		60,056			—			—					60,056
Services		47,203			41,383			—					5,820
Total net sales		318,712			41,383			—					277,329
Cost of sales:
Products		124,369			—			207		(1	)		124,162
Content and operations management systems		23,828			—			120		(1	)		23,708
Services		42,708			38,947			—					3,761
Excess and obsolete inventory change		—			—			—		(2	)		—
Total cost of sales		190,905			38,947			327					151,631
Gross margin		127,807			2,436			(327	)				125,698
Gross margin %		40.1	%		5.9	%							45.3	%
Operating expenses:
Selling and administrative		65,958			2,971			2,803		(1	)		60,184
Research and product development		32,512			—			658		(1	)		31,854
Amortization of other intangibles		3,286			—			3,286		(3	)		—
Impairment charges		—			—			—		(4	)		—
Acquired in-process technology charge		—			—			—		(5	)		—
Loss (gain) on sale of product lines		245			—			245		(6	)		—
Restructuring costs		2,002			1,042			960		(7	)		—
Total operating expenses		104,003			4,013			7,952					92,038
Income (loss) from operations		23,804			(1,577	)		(8,279	)				33,660
Interest expense		(1,434	)		—			—					(1,434	)
Investment income		3,760			—			—					3,760
Foreign exchange gain (loss)		(167	)		(1	)		—					(166	)
Gain on sale of bankruptcy trade claims		—			—			—		(8	)		—
Other income (expense), net		5,273			4,844			—		(9	)		429
Income (loss) before income taxes		31,236			3,266			(8,279	)				36,249
Interest expense (benefit)		2,873			82			0					2,791
Income (loss) from continuing operations	$	28,363		$	3,184		$	(8,279	)			$	33,458
Income (loss) per share from continuing operations:
Basic	$	0.58										$	0.69
Diluted	$	0.56										$	0.66
Weighted average common shares and common share equivalents
Basic		48,762											48,762
Diluted		52,565											52,565

Notes - Non GAAP adjustments:

(1) - Stock-based compensation

(2) - Excess and obsolete inventory charges

(3) - Amortization of intangibles

(4) - Impairment charges

(5) - Acquired in-process technology charge

(6) - Loss (gain) on sale of product lines

(7) - Restructuring costs

(8) - Gain on sale of bankruptcy trade claims

(9) - Gain on litigation judgment

C-COR Incorporated

Continuing Operations - Presented on a Non-GAAP basis

(unaudited, in thousands except per share amounts)

	Q1-FY06
	Historical September 23, 2005			Discontinued Operations Reclass			Non-GAAP Adjustments			Notes		Non-GAAP September 23, 2005
Net sales:
Products	$	40,783		$	—							$	40,783
Content and operations management systems		10,655			—								10,655
Services		12,056			11,200								856
Total net sales		63,494			11,200								52,294
Cost of sales:
Products		26,649			—			49		(1	)		26,600
Content and operations management systems		4,485			—			29		(1	)		4,456
Services		10,731			10,213								518
Excess and obsolete inventory change		6,114			—			6,114		(2	)		—
Total cost of sales		47,979			10,213			6,192					31,574
Gross margin		15,515			987			(6,192	)				20,720
Gross margin %		24.4	%		8.8	%							39.6	%
Operating expenses:
Selling and administrative		17,183			769			860		(1	)		15,554
Research and product development		10,600			—			214		(1	)		10,386
Amortization of other intangibles		1,516			—			1,516		(3	)		—
Impairment charges		—			—					(4	)		—
Acquired in-process technology charge		—			—					(5	)		—
Loss (gain) on sale of product lines		—			—					(6	)		—
Restructuring costs		383			—			383		(7	)		—
Total operating expenses		29,682			769			2,973					25,940
Income (loss) from operations		(14,167	)		218			(9,165	)				(5,220	)
Interest expense		(320	)		—								(320	)
Investment income		306			—								306
Foreign exchange gain (loss)		(134	)		—								(134	)
Gain on sale of bankruptcy trade claims		—			—					(8	)		—
Other income (expense), net		67			—					(9	)		67
Income (loss) before income taxes		(14,248	)		218			(9,165	)				(5,301	)
Interest expense (benefit)		580			17								563
Income (loss) from continuing operations	$	(14,828	)	$	201		$	(9,165	)			$	(5,864	)
Income (loss) per share from continuing operations:
Basic	$	(0.31	)									$	(0.12	)
Diluted	$	(0.31	)									$	(0.12	)
Weighted average common shares and common share equivalents
Basic		47,804											47,804
Diluted		47,804											47,804

Notes - Non GAAP adjustments:

(1) - Stock-based compensation

(2) - Excess and obsolete inventory charges

(3) - Amortization of intangibles

(4) - Impairment charges

(5) - Acquired in-process technology charge

(6) - Loss (gain) on sale of product lines

(7) - Restructuring costs

(8) - Gain on sale of bankruptcy trade claims

(9) - Gain on litigation judgment

C-COR Incorporated

Continuing Operations - Presented on a Non-GAAP basis

(unaudited, in thousands except per share amounts)

	Q2-FY06
	Historical December 23, 2005			Discontinued Operations Reclass			Non-GAAP Adjustments			Notes		Non-GAAP December 23, 2005
Net sales:
Products	$	36,404			—							$	36,404
Content and operations management systems		17,617			—								17,617
Services		12,647			11,969								678
Total net sales		66,668			11,969								54,699
Cost of sales:
Products		23,719			—			29		(1	)		23,690
Content and operations management systems		9,444			—			8		(1	)		9,436
Services		10,859			10,374								485
Excess and obsolete inventory change		1,622			—			1,622		(2	)		—
Total cost of sales		45,644			10,374			1,659					33,611
Gross margin		21,024			1,595			(1,659	)				21,088
Gross margin %		31.5	%		13.3	%							38.6	%
Operating expenses:
Selling and administrative		18,160			922			895		(1	)		16,343
Research and product development		9,972			—			154		(1	)		9,818
Amortization of other intangibles		1,278			—			1,278		(3	)		—
Impairment charges		5,330			—			5,330		(4	)		—
Acquired in-process technology charge		—			—					(5	)		—
Loss (gain) on sale of product lines		—			—					(6	)		—
Restructuring costs		1,367			—			1,367		(7	)		—
Total operating expenses		36,107			922			9,024					26,161
Income (loss) from operations		(15,083	)		673			(10,683	)				(5,073	)
Interest expense		(329	)		—								(329	)
Investment income		317			—								317
Foreign exchange gain (loss)		(113	)		—								(113	)
Gain on sale of bankruptcy trade claims		—			—					(8	)		—
Other income (expense), net		235			—					(9	)		235
Income (loss) before income taxes		(14,973	)		673			(10,683	)				(4,963	)
Interest expense (benefit)		738			22								716
Income (loss) from continuing operations	$	(15,711	)	$	651		$	(10,683	)			$	(5,679	)
Income (loss) per share from continuing operations:
Basic	$	(0.33	)									$	(0.12	)
Diluted	$	(0.33	)									$	(0.12	)
Weighted average common shares and common share equivalents
Basic		47,867											47,867
Diluted		47,867											47,867

Notes - Non GAAP adjustments:

(1) - Stock-based compensation

(2) - Excess and obsolete inventory charges

(3) - Amortization of intangibles

(4) - Impairment charges

(5) - Acquired in-process technology charge

(6) - Loss (gain) on sale of product lines

(7) - Restructuring costs

(8) - Gain on sale of bankruptcy trade claims

(9) - Gain on litigation judgment

C-COR Incorporated

Continuing Operations - Presented on a Non-GAAP basis

(unaudited, in thousands except per share amounts)

	Q3-FY06
	Historical March 24, 2006			Discontinued Operations Reclass			Non-GAAP Adjustments			Notes		Non-GAAP March 24, 2006
Net sales:
Products	$	35,765		$	—							$	35,765
Content and operations management systems		10,560			—								10,560
Services		14,057			12,998								1,059
Total net sales		60,382			12,998								47,384
Cost of sales:
Products		21,772			—			26		(1	)		21,746
Content and operations management systems		6,105			—			20		(1	)		6,085
Services		12,141			11,494								647
Excess and obsolete inventory change		618			—			618		(2	)		—
Total cost of sales		40,636			11,494			664					28,478
Gross margin		19,746			1,504			(664	)				18,906
Gross margin %		32.7	%		11.6	%							39.9	%
Operating expenses:
Selling and administrative		14,869			864			346		(1	)		13,659
Research and product development		8,887			—			40		(1	)		8,847
Amortization of other intangibles		912			—			912		(3	)		—
Impairment charges		1,792			—			1,792		(4	)		—
Acquired in-process technology charge		—			—					(5	)		—
Loss (gain) on sale of product lines		(1,970	)		—			(1,970	)	(6	)		—
Restructuring costs		3,287			—			3,287		(7	)		—
Total operating expenses		27,777			864			4,407					22,506
Income (loss) from operations		(8,031	)		640			(5,071	)				(3,600	)
Interest expense		(341	)		—								(341	)
Investment income		458			—								458
Foreign exchange gain (loss)		465			—								465
Gain on sale of bankruptcy trade claims		—			—					(8	)		—
Other income (expense), net		177			—					(9	)		177
Income (loss) before income taxes		(7,272	)		640			(5,071	)				(2,841	)
Interest expense (benefit)		676			21								655
Income (loss) from continuing operations	$	(7,948	)	$	619		$	(5,071	)			$	(3,496	)
Income (loss) per share from continuing operations:
Basic	$	(0.17	)									$	(0.07	)
Diluted	$	(0.17	)									$	(0.07	)
Weighted average common shares and common share equivalents
Basic		47,896											47,896
Diluted		47,896											47,896

Notes - Non GAAP adjustments:

(1) - Stock-based compensation

(2) - Excess and obsolete inventory charges

(3) - Amortization of intangibles

(4) - Impairment charges

(5) - Acquired in-process technology charge

(6) - Loss (gain) on sale of product lines

(7) - Restructuring costs

(8) - Gain on sale of bankruptcy trade claims

(9) - Gain on litigation judgment

C-COR Incorporated

Continuing Operations - Presented on a Non-GAAP basis

(unaudited, in thousands except per share amounts)

	Q4-FY06
	Historical June 30, 2006			Discontinued Operations Reclass			Non-GAAP Adjustments			Notes		Non-GAAP June 30, 2006
Net sales:
Products	$	45,039		$	—							$	45,039
Content and operations management systems		12,807			—								12,807
Services		14,136			12,413								1,723
Total net sales		71,982			12,413								59,569
Cost of sales:
Products		25,468			—			51		(1	)		25,417
Content and operations management systems		6,187			—			35		(1	)		6,152
Services		12,630			11,712								918
Excess and obsolete inventory change		244			—			244		(2	)		—
Total cost of sales		44,529			11,712			330					32,487
Gross margin		27,453			701			(330	)				27,082
Gross margin %		38.1	%		5.6	%							45.5	%
Operating expenses:
Selling and administrative		18,737			996			699		(1	)		17,042
Research and product development		8,744			—			210		(1	)		8,534
Amortization of other intangibles		885			—			885		(3	)		—
Impairment charges		(112	)		—			(112	)	(4	)		—
Acquired in-process technology charge		—			—					(5	)		—
Loss (gain) on sale of product lines		18			—			18		(6	)		—
Restructuring costs		1,572			26			1,546		(7	)		—
Total operating expenses		29,844			1,022			3,246					25,576
Income (loss) from operations		(2,391	)		(321	)		(3,576	)				1,506
Interest expense		(360	)		—								(360	)
Investment income		920			—								920
Foreign exchange gain (loss)		30			—								30
Gain on sale of bankruptcy trade claims		11,352			1,637			9,715		(8	)		—
Other income (expense), net		2,656			—			1,238		(9	)		1,418
Income (loss) before income taxes		12,207			1,316			7,377					3,514
Interest expense (benefit)		1,026			21								1,005
Income (loss) from continuing operations	$	11,181		$	1,295		$	7,377				$	2,509
Income (loss) per share from continuing operations:
Basic	$	0.23										$	0.05
Diluted	$	0.22										$	0.05
Weighted average common shares and common share equivalents
Basic		47,999											47,999
Diluted		51,292											51,292

Notes - Non GAAP adjustments:

(1) - Stock-based compensation

(2) - Excess and obsolete inventory charges

(3) - Amortization of intangibles

(4) - Impairment charges

(5) - Acquired in-process technology charge

(6) - Loss (gain) on sale of product lines

(7) - Restructuring costs

(8) - Gain on sale of bankruptcy trade claims

(9) - Gain on litigation judgment

C-COR Incorporated

Continuing Operations - Presented on a Non-GAAP basis

(unaudited, in thousands except per share amounts)

	FY 2006
	Historical June 30, 2006			Discontinued Operations Reclass			Non-GAAP Adjustments			Notes		Non-GAAP June 30, 2006
Net sales:
Products	$	157,991		$	—							$	157,991
Content and operations management systems		51,639			—								51,639
Services		52,896			48,580								4,316
Total net sales		262,526			48,580								213,946
Cost of sales:
Products		97,608			—			155		(1	)		97,453
Content and operations management systems		26,221			—			92		(1	)		26,129
Services		46,361			43,793			—					2,568
Excess and obsolete inventory change		8,598			—			8,598		(2	)		—
Total cost of sales		178,788			43,793			8,845					126,150
Gross margin		83,738			4,787			(8,845	)				87,796
Gross margin %		31.9	%		9.9	%							41.0	%
Operating expenses:
Selling and administrative		68,949			3,551			2,800		(1	)		62,598
Research and product development		38,203			—			618		(1	)		37,585
Amortization of other intangibles		4,591			—			4,591		(3	)		—
Impairment charges		7,010			—			7,010		(4	)		—
Acquired in-process technology charge		—			—			—		(5	)		—
Loss (gain) on sale of product lines		(1,952	)		—			(1,952	)	(6	)		—
Restructuring costs		6,609			26			6,583		(7	)		—
Total operating expenses		123,410			3,577			19,650					100,183
Income (loss) from operations		(39,672	)		1,210			(28,495	)				(12,387	)
Interest expense		(1,350	)		—			—					(1,350	)
Investment income		2,001			—			—					2,001
Foreign exchange gain (loss)		248			—			—					248
Gain on sale of bankruptcy trade claims		11,352			1,637			9,715		(8	)		—
Other income (expense), net		3,135			—			1,238		(9	)		1,897
Income (loss) before income taxes		(24,286	)		2,847			(17,542	)				(9,591	)
Interest expense (benefit)		3,020			81			—					2,939
Income (loss) from continuing operations	$	(27,306	)	$	2,766		$	(17,542	)			$	(12,530	)
Income (loss) per share from continuing operations:
Basic	$	(0.57	)									$	(0.26	)
Diluted	$	(0.57	)									$	(0.26	)
Weighted average common shares and common share equivalents
Basic		47,891											47,891
Diluted		47,891											47,891

Notes - Non GAAP adjustments:

(1) - Stock-based compensation

(2) - Excess and obsolete inventory charges

(3) - Amortization of intangibles

(4) - Impairment charges

(5) - Acquired in-process technology charge

(6) - Loss (gain) on sale of product lines

(7) - Restructuring costs

(8) - Gain on sale of bankruptcy trade claims

(9) - Gain on litigation judgment

C-COR Incorporated

Continuing Operations - Presented on a Non-GAAP basis

(unaudited, in thousands except per share amounts)

	FY 2005
	Historical June 24, 2005			Discontinued Operations Reclass			Non-GAAP Adjustments			Notes		Non-GAAP June 24, 2005
Net sales:
Products	$	173,225		$	—							$	173,225
Content and operations management systems		23,943			—								23,943
Services		40,092			37,933								2,159
Total net sales		237,260			37,933								199,327
Cost of sales:
Products		102,708			—			—		(1	)		102,708
Content and operations management systems		12,594			—			—		(1	)		12,594
Services		36,463			34,526			—					1,937
Excess and obsolete inventory change		—			—			—		(2	)		—
Total cost of sales		151,765			34,526			—					117,239
Gross margin		85,495			3,407			0					82,088
Gross margin %		36.0	%		9.0	%							41.2	%
Operating expenses:
Selling and administrative		62,292			2,461			—		(1	)		59,831
Research and product development		37,804			—			—		(1	)		37,804
Amortization of other intangibles		5,697			—			5,697		(3	)		—
Impairment charges		—			—			—		(4	)		—
Acquired in-process technology charge		5,850			—			5,850		(5	)		—
Loss (gain) on sale of product lines		—			—			—		(6	)		—
Restructuring costs		993			—			993		(7	)		—
Total operating expenses		112,636			2,461			12,540					97,635
Income (loss) from operations		(27,141	)		946			(12,540	)				(15,547	)
Interest expense		(680	)		—			—					(680	)
Investment income		1,322			—			—					1,322
Foreign exchange gain (loss)		235			—			—					235
Gain on sale of bankruptcy trade claims		—			—			—		(8	)		—
Other income (expense), net		(282	)		—			—		(9	)		(282	)
Income (loss) before income taxes		(26,546	)		946			(12,540	)				(14,952	)
Interest expense (benefit)		(856	)		203			—					(1,059	)
Income (loss) from continuing operations	$	(25,690	)	$	743		$	(12,540	)			$	(13,893	)
Income (loss) per share from continuing operations:
Basic	$	(0.57	)									$	(0.31	)
Diluted	$	(0.57	)									$	(0.31	)
Weighted average common shares and common share equivalents
Basic		45,325											45,325
Diluted		45,325											45,325

Notes - Non GAAP adjustments:

(1) - Stock-based compensation

(2) - Excess and obsolete inventory charges

(3) - Amortization of intangibles

(4) - Impairment charges

(5) - Acquired in-process technology charge

(6) - Loss (gain) on sale of product lines

(7) - Restructuring costs

(8) - Gain on sale of bankruptcy trade claims

(9) - Gain on litigation judgment