ECI Telecom reported Q3 revenues of $128 million, compared with $95 million in Q3 2003 and $121 million in Q2 2004. This represents the fifth consecutive quarter of increased revenues for the company. Net profit for the quarter reached $6 million, or $0.05 per share on a fully diluted basis, as compared with a net loss of $14.7 million in the third quarter of 2003 and a $3.5 million loss in the second quarter of 2004. Some highlights:
- the Broadband Access Division recorded revenues of $54 million in the quarter, a 35% increase from a year ago and a 7% rise from last quarter. Operating income for the Division reached $6.4 million, compared to $2.3 million in the third quarter of 2003 and $5.3 million in the second quarter of 2004. The division said it is seeing sustained demand from its two largest customers, France Telecom and Deutsche Telekom, as well as with other operators. BT is now testing its FTTP solution.
- revenues for the Optical Networks Division jumped 46% from a year ago and reached $69 million for the quarter, compared to $47 million in the third quarter of 2003 and $61 million in the second quarter. The Division reported continued improvement in profitability, reaching an operating profit of $2.2 million for the quarter, as compared with a $6.8 million loss in the third quarter of 2003 and an operating profit of $1.1 million in the second quarter. The division cited strong demand in emerging markets in the Asia Pacific region, particularly India, as well as Russia and Ukraine and other European countries
- sales to Veraz Networks totaled $4.5 million in the third quarter of 2004, as compared with $6.5 million in the third quarter of 2003 and $8.3 million in the second quarter of 2004. ECI manufactures and sells products to Veraz for resale to its customers and holds 43% of privately held Veraz Networks.
“Our continued growth in both revenues and net profit is in large measure a result of the strategic choices we made during the telecom crisis. We focused on the geographies and products that proved to be areas of significant growth. As a result, ECI’s current growth is outpacing the average growth in our sector,” said Doron Inbar, President and CEO. http://www.ecitele.com
