Wednesday, July 19, 2006

Avici Reports Sudden Jump in Revenue and Profitability

Avici Systems, a supplier of core networking platforms, reported that gross revenue for the three and six-months ended June 30, 2006 was $25.3 million and $46.7 million, respectively, compared to $11.6 million and $22.4 million, respectively, for the three and six-month periods ended June 30, 2005.

Shares in the company closed up 45% on Thursday, making the company's stock the biggest gainer on Nasdaq for the day.

GAAP net income for the six-months ended June 30, 2006 was $2.6 million, or $0.19 per share, compared to a GAAP net loss of $8.3 million, or $0.64 per share, for the six-months ended June 30, 2005.

"Due to a surge and acceleration in demand this quarter's revenue and bottom line results have far exceeded our expectations and resulted in the company turning cash flow positive. We expect to continue to see strong revenue and bottom line results in 2006, but caution that the business conditions driving this increased demand can change significantly. As we have previously announced, we have restructured our business to be profitable at what we believe is a reasonable going forward revenue baseline over the near term in a multi-vendor environment, even though we expect that 2006 will substantially exceed those levels," said Bill Leighton, Chief Executive Officer.

See also