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Avaya reports third fiscal quarter net income of $8 million

Avaya Inc. today reported third fiscal quarter results in accordance with generally accepted accounting principles...


July 24, 2003  


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Avaya Inc. today reported third fiscal quarter results in accordance with generally accepted accounting principles (GAAP).

The company reported net income of $8 million (all figures in U.S. dollars) and earnings per diluted share of 2 cents for the third fiscal quarter ended June 30, 2003.

These results compare to a net loss of $41 million or a loss of 11 cents per diluted share in the second fiscal quarter of 2003.

Third fiscal quarter revenue of $1.072 billion was slightly below second fiscal quarter revenue of $1.081 billion.

In the third fiscal quarter of 2002, Avaya reported a net loss of $39 million or a loss of 11 cents per diluted share on revenue of $1.219 billion.

Avaya noted its cash balance increased for the fourth straight quarter to $843 million. Net debt decreased to $150 million and is at the lowest level it has been since the company became an independent business.

Selling, General and Administrative expenses declined $22 million sequentially from the second fiscal quarter and $51 million from the same period last year.

“The operational improvements we instituted across Avaya helped us achieve positive earnings this quarter,” said Don Peterson, chairman and CEO, Avaya.

“In the quarter, we saw revenue stabilizing and positive signs that IT spending is strengthening. It is also clear that customers are no longer buying technology for technology’s sake. Customers want investments to drive new business models that improve business performance and deliver bottom-line results.

Revenue for the first nine months of fiscal 2003 was $3.220 billion compared to revenue of $3.804 billion for the first nine months of fiscal 2002, a decline of 15.4 percent.

The company had a net loss of $154 million or a loss of 41 cents per diluted share for the first nine months of fiscal 2003, compared to a net loss of $122 million or a loss of 81 cents per diluted share for the first nine months of fiscal 2002.


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