ECI Telecom reported Q2 revenue of $102 million compared to $119 million in Q1 2003 and $174 million in Q2 2002. Gross profit was $37.3 million (36.7% of revenues), compared to gross profit of $48.7 million (41.0%) in Q1 and $67.5 million (38.8%) in Q2 2002. The operating loss for the second quarter of 2003 was $34.3 million compared to an operating loss of $5.6 million in Q1 and an operating loss of $3.2 million for Q2 2002. The net loss for Q2 2003 was $35.0 million, or $0.32 per share. Some other highlights:
- ECI's Broadband Access Division (formerly the Inovia Broadband Access Division) recorded revenues of $45 million in Q2 compared to $51 million in the first quarter of 2003 and $73 million in the second quarter of last year. The division recorded improved gross margins for the quarter and announced the completion of the OSMINE process for Telcordia Systems Integration. The division also cited progress in "triple-play" services - voice, data and video -- including a key contract with the Cyprus Telecommunications Authority (CYTA) for tens of thousands of DSL lines.
ECI's Optical Networks Division (formerly the Lightscape Optical Networks Division which consisted of Lightscape and Enavis) recorded revenues of $40 million in Q2 compared to $42 million in Q1 and $60 million in Q2 last year. The division has released its new network management system to select customers and is on track to deliver Ethernet switching on the XDM during Q4.
ECtel, in which ECI holds a 58% stake, reported Q2 revenues of $10 million compared to $15 million in Q1 2003 and $24 million in Q2 2002.
Sales to Veraz Networks totaled $6.5 million in Q2 compared to $8.7 million in the first quarter. ECI holds 43% of privately-held Veraz. ECI manufactures and sells DCME (Digital Circuit Multiplication Equipment) and Voice over IP products to Veraz for resale.
Gerd Tenzer, former Deputy Chairman of the Board of Management of Deutsche Telekom, has joined the ECI Board of Directors.
