ECI Telecom Updates Q2 Outlook

ECI Telecom now expects total consolidated revenues for its second quarter (ended 30-June-2003) to be approximately $101 million – $103 million. The company cited a revenue decline at ECtel and a slightly larger than expected decline in the revenues of its core businesses. ECI also announced plans to record charges associated with the recent restructuring of its Lightscape Optical Networks Division. It also said expects to make certain additional provisions with respect to a specific long term receivable reflecting the expected outcome of advanced discussions with a customer. As a result, ECI now estimates the total net loss for its Q2 to be between $30 million and $32 million or ($0.28)/share to ($0.30)/share. During the quarter, ECI continued to generate significant positive cash flow from operations and paid down $123 million of bank debt. At the end of the quarter, it had $170 million in cash, compared to an excess of $150 million at the end of the first quarter. Full results are expected on 06-August-2003.
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