ECI Telecom Ltd. (Nasdaq: ECIL) has published its financial reports for the fourth quarter of 2006 and the year as a whole. The company’s fourth quarter revenue totaled $154 million, compared with $170 million for the preceding quarter and $169 million for the corresponding quarter of 2005.
ECI posted a net profit of $2.3 million ($0.02 per shares) for the fourth quarter, down from $7.1 million for the preceding quarter and $7.6 million ($0.06 per share) for the corresponding quarter of 2005.
ECI’s revenue for 2006 rose by 4%, compared with 2005, to $656 million, but its net profit fell to $22.1 million ($0.18 per share) from $39.9 million ($0.34 per share) in 2005. On the other hand, the company’s pro forma, or non-GAAP, profit rose to $43.1 million in 2006 from $38.3 million in 2005. The non GAAP profit fro the fourth quarter differed from results reported under US GAAP because of adjustments made for the amortization of acquired intangible assets, options allocations, and restructuring costs, including inventory write-off and employee severance benefits.
ECI predicts 4-8% revenue growth in 2007, and an even higher rate of profit growth.
ECI president and CEO Rafi Maor said, "Our Optical Networks Division completed another year of exceptional growth and increased market share. Our optical business grew 17% year over year, higher than industry average… A point in case is our success in India where our revenues more than quadrupled in two years from $24 million to over $100 million in 2006. At the same time, the Division also continues to benefit from further deployment of 3G networks by its European customers."
ECI also announced that CFO Giora Bitan was leaving the company to return to his career in venture capital.
ECI also said that Veraz Networks Inc. had filed a second amendment to its prospectus for its planned IPO, and that ECI may sell part of its 33% stake in Veraz as part of the offering.
Published by Globes [online], Israel business news - www.globes.co.il - on February 1, 2007
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