Networks and services company Avaya has reported its second quarter results with reduced losses and marginally increased revenues.
Revenues at the company were up to US$1.081bn in the second fiscal quarter of 2003, an increase of 1.3pc sequentially from revenues of US$1.067bn in the first fiscal quarter of 2003.
The company had a net loss of US$16m or a loss of four cents per diluted share in the second fiscal quarter of 2003, compared to a net loss of $121 million or a loss of 33 cents per diluted share in the first fiscal quarter of 2003. In the same period last year, the company had a net loss of US$63m or a loss per diluted share of 63 cents.
Avaya said operating income in the second fiscal quarter of 2003 was US$28m compared to an operating loss of US$18m in the first fiscal quarter of 2003. In the second fiscal quarter of 2002, Avaya had an operating loss of US$108m.
The company’s cash balance increased in the second fiscal quarter of 2003 to US$724m and cash flow from operations for the quarter was US$85m. Gross margin in the second fiscal quarter was 42.2pc, up from 39.7pc in the first fiscal quarter.
“We made great strides this quarter to strengthen our financial position and size our business to take advantage of marketplace opportunities,” said Don Peterson, chairman and CEO, Avaya. “We had higher gross margins and positive operating income. Our cash balance increased for the third quarter in a row and we saw some stability in revenues as customers invested in Avaya solutions that deliver immediate benefits,” Peterson added. “We remain cautious in our expectations given the uncertain economic conditions and we’ll continue to manage resources closely to drive additional efficiencies.”
The Lucent spin off employs over 220 people at its European Headquarters in Bray.
By Dick O’Brien