ECI Telecom (Nasdaq:ECIL) today reported that net profit for the third quarter of 2004 reached $6 million, or $0.05 per share on a fully diluted basis, as compared with a loss of $14.7 million in the third quarter of 2003 and a $3.5 million loss in the second quarter of 2004.
Revenue for the third quarter of 2004 was $128 million, compared with $95 million in the third quarter of 2003 and $121 million in the second quarter of 2004. The company noted that this was the fifth consecutive quarter of increased revenue.
ECI's broadband access division recorded revenue of $54 million in the quarter, a 35% increase from a year ago and a 7% rise from last quarter. Operating income for the division reached $6.4 million, compared to $2.3 million in the third quarter of 2003 and $5.3 million in the second quarter of 2004.
Revenue for the optical networks division jumped 46% from a year ago and reached $69 million for the quarter, compared to $47 million in the third quarter of 2003 and $61 million in the second quarter. The division reported continued improvement in profitability, reaching an operating profit of $2.2 million for the quarter, as compared with a $6.8 million loss in the third quarter of 2003 and an operating profit of $1.1 million in the second quarter.
Sales to Veraz Networks were $4.5 million in the third quarter of 2004, as compared with $6.5 million in the third quarter of 2003 and $8.3 million in the second quarter of 2004. ECI manufactures and sells products to Veraz for resale to its customers and holds 43% of privately held Veraz Networks.
For the first nine months of 2004, the total net profit was $1.2 million, or $0.01 per share, compared to a net loss of $57.5 million, or $0.53 per share, for the first nine months of last year.
Revenue for the nine month period was $357 million, a 23% increase from $290 million in the first nine months of 2003.
Operating income for the period was $7.4 million, compared to an operating loss of $29.9 million for the first nine months of 2003.
ECI president and CEO Doron Inbar said, "Our continued growth in both revenues and net profit is in large measure a result of the strategic choices we made during the telecom crisis. We focused on the geographies and products that proved to be areas of significant growth."
ECI stated that it expects continued steady sequential quarterly growth in both revenues and profits in the fourth quarter of 2004, and well into 2005.
Published by Globes [online] - www.globes.co.il - on Thursday, November 11, 2004