Avaya Reports Increased Revenues, Operating Income and Operating
Cash Flow From Continuing Operations in Third Fiscal Quarter Of
2004
-Revenues Increased Nine Percent Year-Over-Year to $1.016 Billion
-Operating Income and Cash Flow Show Strong Improvements
BASKING RIDGE, N. J., July 27 /PRNewswire-FirstCall/ -- Avaya Inc.,
(NYSE:AV) a leading global provider of business communications
software, systems and services, reported income from continuing
operations of $58 million or earnings of 12 cents per diluted share in
the third fiscal quarter. Included in the 12 cents was a four cents
per diluted share charge for the repurchase of senior secured notes in
the third fiscal quarter. The company reported its sixth straight
year-over-year increase in quarterly operating income, an increase
driven by profitable results from all three business segments.
In the same quarter last year, the company said it reported a loss
from continuing operations of $3 million or a loss of one cent per
diluted share. Included in those results was a three cent per diluted
share gain from the extinguishment of debt and a gain on an asset
sale.
Third fiscal quarter 2004 revenues increased nine percent to $1.016
billion compared to $929 million in the same period last year.
The company noted higher revenues and gross margin, coupled with lower
selling general and administrative (SG&A) expenses contributed to a 53
percent sequential increase to $92 million in operating income,
bringing operating margin to nine percent of sales. This is up from
break even operating income a year ago. Operating cash flow from
continuing operations in the quarter was $215 million. Gross margin
increased year-over-year to 48 percent from 43 percent, and SG&A
expenses were 30 percent of sales, down two percentage points from the
second fiscal quarter of 2004.
The company said including results from discontinued operations, net
income for the third fiscal quarter of 2004 was $61 million or 13
cents per diluted share compared to net income of $8 million or two
cents per diluted share in the third fiscal quarter of 2003.
Avaya said discontinued operations includes its former Connectivity
Solutions segment, substantially all of which had been completely
divested as of June 30, 2004, and the segments of the Expanets
business it had divested.
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