Telecommunications equipment company ECI Telecom (Nasdaq: ECIL) has reported third quarter revenue of $162 million, representing a 26% increase from the $128 million recorded in the third quarter of 2004, and up 6% compared with the $153 million recorded in the second quarter of 2005. Third quarter 2005 revenue was ahead of the consensus analysts' estimate of $158 million.
The company made a net profit for the third quarter of 2005 of $6.2 million, or $0.05 per share on a fully diluted basis, compared with a third quarter 2004 net profit of $6.0 million, or $0.05 per share, and compared with $15.6 million, or $0.13 per share, in the second quarter of 2005.
Results for the third quarter include for the first time the full quarterly results of Laurel Networks, which amounted to a $7.7 million loss in the quarter.
Pro forma, non-GAAP net income for the third quarter of 2005 was $8.0 million, or $0.07 per diluted share. The analysts' consensus profit estimate was $0.06 per share
Cash flow from operating activities totaled $26.7 million for the third quarter of 2005, bringing the nine month year-to-date cash flow to $151.3 million, including the positive impact in the second quarter of $96 million received for the sale of its receivable from Brazilian carrier GVT.
At the end of third quarter, ECI Telecom's cash, including short and long-term deposits and marketable securities, totaled $231 million, or $1.95 per share with no debt. Outgoing ECI president and CEO Doron Inbar said, "We are pleased to report another quarter of outstanding performance. Our core Broadband Access and Optical Networks divisions continue to demonstrate strong revenue growth and as a result ECI Telecom continues to grow faster than the broader telecommunications industry. We are competing successfully in markets that are among the fastest growing sectors of the telecom industry."
In its guidance, ECI said it continued to expect sequential quarterly growth in both revenue and profits for the fourth quarter of 2005, and that its growth would exceed that of the general telecommunications equipment sector.
ECI shares closed at $7.56 yesterday, giving the company a market cap of $832 million.
Published by Globes [online], Israel business news - www.globes.co.il - on November 3, 2005