ECI Telecom reported Q4 2004 revenue of $140 million, a 36% increase from $103 million in the fourth quarter of 2003 and $128 million in the third quarter of 2004. Net profit for the quarter reached $8.9 million, or $0.08 per share on a fully diluted basis, compared with a net loss of $13.6 million, or $0.13 per share, for the fourth quarter of 2003 and net profit of $6 million, or $0.05 per share, in the third quarter of 2004. This quarter represents the sixth consecutive quarter of increased revenues for the company. Some highlights:
- Revenues for the Broadband Access Division increased to $60 million in the quarter, up 28% from a year ago and a 10% rise from last quarter. Operating income for the Division reached $9.7 million, compared to $3.9 million in the fourth quarter of 2003 and $6.4 million in the third quarter of 2004.
- Revenues for the Optical Networks Division jumped 48% from a year ago and reached $72 million for the quarter, compared to $49 million in the fourth quarter of 2003 and $69 million in the third quarter. The Division continued to improve its profitability, reaching an operating profit of $2.8 million for the quarter, compared with an $8.7 million loss in the fourth quarter of 2003 and an operating profit of $2.2 million in the third quarter.
Commenting on the results, Doron Inbar, President and CEO said, “We are very pleased with our 2004 results. We had said at the beginning of the year that 2004 would be our year of return to profitability. We have now delivered on that promise: after four years of losses, ECI is now reporting profitability for the entire year. Not only have we reached this target, but we believe that we are now firmly on a path of sustained growth in both revenues and profits, which we believe we can carry into 2005. Bookings in both of our core divisions continued to rise in the fourth quarter and backlog at year-end reached its highest level in recent years. We believe that our core focal areas, Broadband Access and Metro Optical Networks, particularly in Europe and in Emerging Markets, continue to represent strong growth opportunities.
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