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IMPROVED RESULTS AT AVAYA

27 Jul 04. Growing demand for IP (Internet Protocol) telephony products helped Avaya, the US telecommunications equipment and software group, report improved quarterly results on Tuesday.

Fiscal third-quarter revenues at the Basking Ridge, New Jersey-based company increased by 9 per cent to $1bn from a year earlier driven by product sales that increased by 11 per cent reflecting rising demand from corporate customers for Avaya’s gateways and IP Office products.

Net income grew to $61m, or 13 cents a share, compared with a year-earlier profit of $8m, or 2 cents. Income from continuing operations was $58m, or 12 cents a share, compared with a loss of $3m, or one cent, a year ago.

The gains at Avaya reflect a continued shift by companies and other organisations from traditional circuit switched telephony products and PBX equipment towards “converged” IP networks than handle both data and voice traffic. Avaya sells the IP systems and software that make this transition possible. The company said it was “cautiously optimistic” that its fiscal fourth quarter, typically its strongest for revenue and operating income, will be consistent with historical patterns.

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