ECI Telecom reported Q4 2005 revenues of $169 million, a 21% increase from the $140 million recorded in the fourth quarter of 2004 and compared to $162 million recorded in the third quarter of 2005.
For the entire year 2005, revenues rose 27% to reach $630 million.
Net income for the fourth quarter of 2005 reached $7.6 million, or $0.06 per share on a fully diluted basis, compared with fourth quarter 2004 net income of $8.9 million, or $0.08 per share, prior to the acquisition of Laurel Networks, which was completed in June 2005. In the third quarter of 2005 ECI earned $6.2 million, or $0.05 per share.
Some highlights for quarter include:
- Revenues for the Optical Networks Division continued to grow and totaled $88 million for the fourth quarter of 2005, up 22% from the year ago period and compared to $85 million in the third quarter of 2005.
- ECI’s Broadband Access Division sold and installed over 4 million ADSL lines during the year, reflecting growth of more than 40% for the year. Revenues for the fourth quarter of 2005 totaled $68 million, up 13% from the year ago period and compared with a similar level of sales in the third quarter of 2005.
- Revenues for the Data Networking Division (formerly Laurel Networks, acquired in June 2005) totaled $2 million for the fourth quarter of 2005, similar to the third quarter, while the operating loss was $8.7 million, compared to an operating loss of $7.7 million in the prior quarter. ECI has made significant progress in the integration of the division and in building a sales pipeline. Management expects a significant increase in sales of the division’s products later in 2006.
Rafi Maor, ECI’s new President and CEO stated, “During the fourth quarter of 2005, we continued deploying our leading edge IPTV solutions at one of our primary European customers. During the first quarter of 2006, ECI will begin a large-scale deployment of advanced IPTV solutions with another major European customer. The customer is expected to offer advanced triple play services including High Definition TV (HDTV) broadcasts of the World Cup soccer tournament, to be held in June of this year.”http://www.ecitelecom.com
