Wednesday, May 4, 2005

ECI Reports 35% Revenue Growth in Q1

ECI Telecom reported Q1 revenue of $145 million, a 35% increase from $108 million in Q1 2004 and a 4% increase from $140 million in Q4 2004. This marks the seventh consecutive quarterly increase in revenues for the company. Net income for Q1 reached $10.4 million, or $0.09 per share.

Commenting on the results, Doron Inbar, President and CEO said "The Broadband Access Division's continued growth and profitability are due primarily to our European customers' increasing focus on delivering revenue-generating services such as TV over DSL and video on demand (VOD), which will enable them to attract new customers as well as increase customer loyalty and average revenue per user (ARPU)... Our Optical Networks Division maintained its strong growth, with advanced emerging markets such as Russia and Asia Pacific countries continuing to deploy new networks to meet increasing customer demand. With the increased momentum in deploying 3G networks, cellular backhaul continues to be a major growth driver for this Division."

Revenues for the Broadband Access Division increased to $63 million in the quarter, up 31% from a year ago and compared to $60 million last quarter. Operating income for the Division reached $8.5 million, compared to $3.3 million in the first quarter of 2004.

Revenues for the Optical Networks Division increased 47% from a year ago and reached $77 million for the quarter, compared to $72 million in the fourth quarter of 2004. The Division continued to improve its profitability, reaching an operating income of $4.9 million for the quarter, compared with a $3 million loss in the first quarter of 2004.


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