Avaya Reports A Profit, Thanks To Renewed IT Spending

Jan 27, 2004 (12:01 PM EST)

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Communications-equipment maker Avaya Inc. broke into the black during its first quarter, thanks to what it sees as a rebound in corporate IT spending.

For the quarter ended Dec. 31, Avaya posted a profit of $10 million, or 2 cents per share, up from a loss of $121 million, or 33 cents per share, a year ago. When costs from discontinued operations are factored out, the company had income of $30 million, up from a loss of $125 million. Revenue was up 3%, to $971 million, from $946 million a year ago.

Avaya said the positive earnings are due in part to companies spending more on telecom equipment, including voice-over-IP hardware, as the economic picture improves. "The economy appears to be maintaining," said CEO Don Peterson, on a conference call. "And business optimism, while fragile, is stable."