Exhibit 99.1

UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA

In Re: Clarent Corporation		Case No. 02-33504

		Chapter 11
		Monthly Operating Report

SUMMARY OF FINANCIAL STATUS

Month Ended:

FEBRUARY 29, 2004

Petition Date: December 13, 2002

1. Susan L. Uecker hereby submits this Monthly Operating Report on the Accrual Basis of Accounting (or if checked here the Office of U.S. Trustee or the Court has approved the Cash Basis for the Debtor.)

Dollars reported in $1.

2. Asset and Liability Structure

	End of Current Month		End of Prior Month		As of Petition Filing
a. Current Assets	$	13,860,136	$	13,746,417	unknown
b. Total Assets	$	13,860,136	$	13,746,417	unknown
c. Current Liabilities	unknown
d. Total Liabilities	unknown

3. Statement of Cash Receipts & Disbursements for Month

	Current Month		Prior Month				Cumulative Case to Date
a. Total Receipts	$	373,339	$	1,178			$	12,200,457
b. Total Disbursements (see Cash Flow Report)	259,620		87,968				7,388,552
c. Excess (Deficiency) of Receipts Over Disbursements	$	113,719	$		(86,790	)	$	4,811,905
d. Cash Balance Beginning of Month	$	13,746,417	$	13,821,791
e. Cash Balance End of Month	$	13,860,136	$	13,746,417

		Current Month		Prior Month			Cumulative Case to Date
4.	Profit / (Loss) from the Statement of Operations	$	113,719	$	(86,790	)	$	4,811,905
5.	Accounts Receivable (Pre and Post Petition)
6.	Post-Petition Liabilities
7.	Past Due Post-Petition Accounts Payable (over 30 days)
				Yes			No
8.	Have any payments been made on pre-petition debt, other than payments in the normal course to secured creditors or lessors? (if yes, attach a listing including date of payment, amount of payment and name of payee)			o			ý

9.	Have any payments been made to professionals? (if yes, attach a listing including date of payment, amount of payment and name of payee)			o			ý

10.	If the answer is Yes to 8 or 9, were all such payments approved by the Court?			o			ý

11.	Have any payments been made to officers, insiders, shareholders, relatives? (if Yes, attach listing including date, amount, reason and payee of payments)			o			ý

12.	Is the estate insured for replacement cost of assets and general liability?			o			ý

13.	Are a plan and disclosure statement on file?			o			ý

14.	Was there any post-petition borrowing during this reporting period?						ý

15.	Check If Paid:
	Post-Petition Taxes	ý	U.S. Trustee Quarterly Fees	ý
	Tax Reporting & Returns	ý	(Check if filing is current for Post-Petition)
	(Attach explanation, if post-petition taxes or U.S. Trustee Quarterly Fees are not paid current or if post-petition tax reporting and tax return filings are not current.)

I declare under penalty of perjury, I have reviewed the above summary and attached financial statements, and after reasonable inquiry, I believe these documents are correct.

	/s/ Susan L. Uecker
Date: March 9, 2004	Susan L. Uecker, Trustee

CLARENT CORPORATION
Susan L. Uecker, Trustee

Balance Sheet

February 29, 2004

ASSETS

Current Assets
Checking-Bank of America	$	51,741.77
Market Rate-Bank of America	6,862,400.78
Investment Account-Wells Fargo	6,945,993.00

Total Current Assets					13,860,135.55

Other Assets

Total Other Assets					0.00

Total Assets					$	13,860,135.55

LIABILITIES AND CAPITAL

Current Liabilities
Unlocated Difference-BofA	$		(43,726.73	)
Unlocated Income-SVB	53,580.09

Total Current Liabilities					9,853.36

Long-Term Liabilities

Total Long-Term Liabilities					0.00

Total Liabilities					9,853.36

Capital
Turnover Funds	(10,367.85			)
Retained Earnings	13,821,791.00
Net Income	38,859.04

Total Capital					13,850,282.19

Total Liabilities & Capital					$		13,860,135.55

Unaudited - For Management Purposes Only

CLARENT CORPORATION

Susan L. Uecker, Trustee

Income Statement

For the Two Months Ending February 29, 2004

	Current Month		Year to Date

Revenues
Pre-Trustee A/R	6,425.33		6,425.33
Receivable from Verso	350,000.00		350,000.00
Dividends	842.72		842.72
Interest Income	2,166.26		3,343.80
Refunds	13,904.99		13,904.99

Total Revenues	373,339.30		374,516.84

Expenses
Trustee’s Bond	0.00		21,000.00
Legal Fees & Costs	221,207.33		221,233.83
Mediation Fees	0.00		8,100.50
Professional Services	0.00		2,144.69
Bank Charges	66.20		365.79
Priority Claims	0.00		1,200.00
Management Fees	25,000.00		75,000.00
Rent-Office	453.72		2,885.29
Shareholder Services	0.00		819.47
Storage Rent & Costs	894.80		1,036.12
General Office	68.36		68.36
Pre-Trustee Expense	0.00		303.75
US Trustee Fees	0.00		1,500.00

Total Expenses	247,690.41		335,657.80

Net Income	$	125,648.89	$	38,859.04

For Management Purposes Only

CLARENT CORPORATION

Susan L. Uecker, Trustee

Statement of Cash Flow

For the Two Months Ended February 29, 2004

	Current Month			Year to Date

Cash Flows from operating activities
Net Income	$	125,648.89		$	38,859.04
Adjustments to reconcile net income to net cash provided by operating activities
Clarent/Verso Revenue	(11,970.85		)	0.00
Unlocated Difference-BofA	0.00			(43,726.73		)
Unlocated Income-SVB	0.00			53,580.09
Payroll Taxes Payable	0.00			0.00
Escrow Funds	0.00			0.00
Sales Tax Payable	0.00			0.00

Total Adjustments	(11,970.85		)	9,853.36

Net Cash provided by Operations	113,678.04			48,712.40

Cash Flows from investing activities
Used For
Misc Accounts Receivable	0.00			0.00
Assignee Retainer	0.00			0.00
Legal Retainer	0.00			0.00
Refundable Deposits	0.00			0.00
Note Receivable	0.00			0.00

Net cash used in investing	0.00			0.00

Cash Flows from financing activities
Proceeds From
Turnover Funds	41.00			1,603.00
Beginning Balance Equity	0.00			0.00
Common Stock	0.00			0.00
Dividends Paid	0.00			0.00
Used For
Turnover Funds	0.00			(11,970.85		)
Beginning Balance Equity	0.00			0.00
Common Stock	0.00			0.00
Dividends Paid	0.00			0.00

Net cash used in financing	41.00			(10,367.85		)

Net increase (decrease) in cash	$	113,719.04		$	38,344.55

Summary
Cash Balance at End of Period	$	13,860,135.55		$	13,860,135.55
Cash Balance at Beginning of P	(13,746,416.51		)	(13,821,791.00		)

Net Increase (Decrease) in cash	$	113,719.04		$	38,344.55

Unaudited - For Internal Use Only.

CLARENT CORPORATION

General Ledger

For the Period From Feb 1, 2004 to Feb 29, 2004

Filter Criteria includes: Report order is by ID. Report is printed in Detail Format.

Account ID
Account Description

Date

Reference

Jrnl

Trans Description

Debit Amt

Credit Amt

Balance

110

2/1/04

Beginning Balance

65,147.52

Checking-Bank of Americ

2/9/04

ACTIVITY,

GENJ

BANK SERVICE CHARGE, 02/04

18.02

2/19/04

1011

CDJ

BAY AREA EXECUTIVES OFFICES, I

453.72

2/19/04

1012

CDJ

COR-O-VAN, INC.

180.80

2/19/04

1013

CDJ

DATASAFE

606.00

2/19/04

1014

CDJ

VERSO TECHNOLOGIES, INC.

11,970.85

2/26/04

1015

CDJ

SHURGARD OF SF

108.00

2/2604

1016

CDJ

SPEEDWAY DIGITAL PRINTING

68.36

Current Period Change

13,405.75

-13,405.75

2/29/04

Ending Balance

51,741.77

111

2/1/04

Beginning Balance

6,646,526.49

Market Rate-Bank of Ame

2/5/04

CASH

CRJ

PETTY CASH

41.00

2/5/04

242

CRJ

ACT NETWORKS

842.72

2/5/04

1268832

CRJ

FIREMAN’S FUND

228.00

2/5/04

0000313296

CRJ

VERSO TECHNOLOGIES

6,425.33

2/5/04

00678684

CRJ

ADP

11,847.09

2/9/04

ACTIVITY,

GENJ

TRANSFER FROM SILICON VALLEY BANK

88,749.50

2/9/04

ACTIVITY,

GENJ

BANK SERVICE CHARGE, 02/04

48.18

2/17/04

0000313557

CRJ

VERSO TECHNOLOGIES

350,000.00

2/18/04

WIRE

CDJ

REGENT PACIFIC

25,000.00

2/25/04

WIRE 1

CDJ

PACHULSKI, STANG, ZIEHL ET AL

221,207.33

2/27/04

6005711970

CRJ

STATE COMPENSATION FUND

1,829.90

2/27/04

INT 02/04

CRJ

BANK OF AMERICA

2,166.26

Current Period Change

462,129.80

246,255.51

215,874.29

2/29/04

Ending Balance

6,862,400.78

114

2/1/04

Beginning Balance

6,945,993.00

Investment Account-Wells

2/29/04

Ending Balance

6,945,993.00

116

2/1/04

Beginning Balance

88,749.50

Checking-Silicon Valley B

2/9/04

ACTIVITY,

GENJ

TRANSFER FROM SILICON VALLEY BANK

88,749.50

Current Period Change

88,749.50

-88,749.50

2/29/04

Ending Balance

215

2/1/04

Beginning Balance

-11,970.85

Clarent/Verso Revenue

2/19/04

1014

CDJ

VERSO TECHNOLOGIES, INC. - LUCENT TECHNOLOGIES

1,610.00

2/19/04

1014

CDJ

VERSO TECHNOLOGIES, INC. - MEXICANA DE ELECTRONICA

6,327.50

2/19/04

1014

CDJ

VERSO TECHNOLOGIES, INC. - TNN NETWORKS

763.35

2/19/04

1014

CDJ

VERSO TECHNOLOGIES, INC. - TNN NETWORKS

3,270.00

Current Period Change

11,970.85

2/29/04

Ending Balance

216

2/1/04

Beginning Balance

43,726.73

Unlocated Difference-Bof

2/29/04

Ending Balance

43,726.73

Account ID
Account Description

Date

Reference

Jrnl

Trans Description

Debit Amt

Credit Amt

Balance

217

2/1/04

Beginning Balance

-53,580.09

Unlocated Income-SVB

2/29/04

Ending Balance

-53,580.09

350

2/1/04

Beginning Balance

10,408.85

Turnover Funds

2/5/04

CASH

CRJ

PETTY CASH - PETTY CASH/TURNOVER

41.00

Current Period Change

41.00

-41.00

2/29/04

Ending Balance

10,367.85

360

2/1/04

Beginning Balance

-13,821,791.00

Retained Earnings

2/29/04

Ending Balance

-13,821,791.00

410

2/1/04

Beginning Balance

Pre-Trustee A/R

2/5/04

0000313296

CRJ

VERSO TECHNOLOGIES - FINAL BILLING/MISC A/R

6,425.33

Current Period Change

6,425.33

-6,425.33

2/29/04

Ending Balance

-6,425.33

421

2/1/04

Beginning Balance

Receivable from Verso

2/17/04

0000313557

CRJ

VERSO TECHNOLOGIES - FINAL NOTE PAYMENT

350,000.00

Current Period Change

350,000.00

-350,000.00

2/29/04

Ending Balance

-350,000.00

425

2/1/04

Beginning Balance

Dividends

2/5/04

242

CRJ

ACT NETWORKS - FINAL DIVIDEND

842.72

Current Period Change

842.72

-842.72

2/29/04

Ending Balance

-842.72

440

2/1/04

Beginning Balance

-1,177.54

Interest Income

2/27/04

INT 02/04

CRJ

BANK OF AMERICA - INTEREST INCOME, 02/04

2,166.26

Current Period Change

2,166.26

-2,166.26

2/29/04

Ending Balance

-3,343.80

450

2/1/04

Beginning Balance

Refunds

2/5/04

1268832

CRJ

FIREMAN’S FUND - INSURANCE REFUND

228.00

2/5/04

00678684

CRJ

ADP - REFUND/OVERPAYMENT FOR PROXY MAILING

11,847.09

2/27/04

6005711970

CRJ

STATE COMPENSATION FUND - INSURANCE REFUND

1,829.90

Current Period Change

13,904.99

-13,904.99

2/29/04

Ending Balance

-13,904.99

517

2/1/04

Beginning Balance

21,000.00

Trustee’s Bond

2/29/04

Ending Balance

21,000.00

520

2/1/04

Beginning Balance

26.50

Legal Fees & Costs

2/25/04

WIRE 1

CDJ

PACHULSKI, STANG, ZIEHL ET AL - FEES & COSTS, PER ORDER

221,207.33

Account ID
Account Description

Date

Reference

Jrnl

Trans Description

Debit Amt

Credit Amt

Balance

520(cont.)

Current Period Change

221,207.33

2/29/04

Ending Balance

221,233.83

521

2/1/04

Beginning Balance

8,100.50

Mediation Fees

2/29/04

Ending Balance

8,100.50

525

2/1/04

Beginning Balance

2,144.69

Professional Services

2/29/04

Ending Balance

2,144.69

550

2/1/04

Beginning Balance

299.59

Bank Charges

2/9/04

ACTIVITY,

GENJ

BANK SERVICE CHARGE,
02/04

66.20

Current Period Change

66.20

2/29/04

Ending Balance

365.79

620

2/1/04

Beginning Balance

1,200.00

Priority Claims

2/29/04

Ending Balance

1,200.00

633

2/1/04

Beginning Balance

50,000.00

Management Fees

2/18/04

WIRE

CDJ

REGENT PACIFIC - FEES,
PER CONTRACT

25,000.00

Current Period Change

25,000.00

2/29/04

Ending Balance

75,000.00

645

2/1/04

Beginning Balance

2,431.57

Rent-Office

2/19/04

1011

CDJ

BAY AREA EXECUTIVES
OFFICES, I - INV
#24010024, EXTRA
SERVICES THROUGH
1/15/04

435.65

2/19/04

1011

CDJ

BAY AREA EXECUTIVES
OFFICES, I - FEDERAL
EXPRESS PACKAGE,
12/22/03

18.07

Current Period Charge

453.72

2/29/04

Ending Balance

2,885.29

648

2/1/04

Beginning Balance

819.47

Shareholder Services

2/29/04

Ending Balance

819.47

650

2/1/04

Beginning Balance

141.32

Storage Rent & Costs

2/19/04

1012

CDJ

COR-O-VAN, INC -
#RS5064129, TO 1/31/04

180.80

2/19/04

1013

CDJ

DATASAFE - #81475, INV
#81475T028766,
11/21/03-2/21/04

165.00

2/19/04

1013

CDJ

DATASAFE - #81475, INV
#81475T031404,
2/21/04-5/21/04

165.00

2/19/04

1013

CDJ

DATASAFE - #41980, INV
#V419801203,
12/6/03-3/6/04

276.00

2/26/04

1015

CDJ

SHURGARD OF SF - #2215,
03/04

108.00

Current Period Change

894.80

2/29/04

Ending Balance

1,036.12

Account ID
Account Description

Date

Reference

Jrnl

Trans Description

Debit Amt

Credit Amt

Balance

665

2/1/04

Beginning Balance

General Office

2/26/04

1016

CDJ

SPEEDWAY DIGITAL

68.36

PRINTING - #1156359,

02/24/04

Current Period Change

68.36

2/29/04

Ending Balance

68.36

720

2/1/04

Beginning Balance

303.75

Pre-Trustee Expense

2/29/04

Ending Balance

303.75

755

2/1/04

Beginning Balance

1,500.00

US Trustee Fees

2/29/04

Ending Balance

1,500.00

CLARENT CORPORATION

General Journal

For the Period From Feb 1, 2004 to Feb 29, 2004

Filter Criteria includes: Report order is by Date. Report is printed in Detail Format.

Date	Account ID	Reference	Trans Description	Debit Amt	Credit Amt
2/9/04	111	ACTIVITY, 02/0	TRANSFER FROM SILICON VALLEY BANK	88,749.50
	116		TRANSFER FROM SILICON VALLEY BANK		88,749.50
	550		BANK SERVICE CHARGE, 02/04	66.20
	111		BANK SERVICE CHARGE, 02/04		48.18
	110		BANK SERVICE CHARGE, 02/04		18.02
		Total		88,815.70	88,815.70

CLARENT CORP/DE 8-K