ECI Telecom reported Q2 revenue of $164 million, compared with $170 million in the second quarter of 2006 and $155 million in the first quarter of 2007. GAAP net income reached $24.8 million, or $0.20 per share on a fully diluted basis, compared with second quarter 2006 net income of $9.6 million, or $0.08 per diluted share.
Some highlights:
- Revenues for the Transport Networking Division (reflecting the merger of the company's Optical Networks and Data Networking Divisions), totaled $109 million for the quarter. This represents a 15% increase from $95 million in the comparable quarter last year and up approximately $4 million compared with the first quarter of 2007.
- Revenues for the Broadband Access Division totaled $50 million for the quarter, down from $66 million in the comparable quarter last year and up from $45 million in the first quarter of 2007.
- Veraz Networks completed its initial public offering (IPO) in NASDAQ and ECI recorded gains totaling close to $40 million. Following the offering, ECI owns 27.5% (23% on a fully diluted basis) of the common stock of Veraz Networks.
- On July 2, 2007, ECI announced that it entered into a definitive merger agreement for the Company to be acquired by affiliates of the Swarth Group and certain funds that have appointed Ashmore Investment Management Limited as their investment manager. ECI now expects this deal to close in Fall 2007.
"I am pleased with our second quarter results as they reflect the continued positive momentum in our business. Our transport business remains strong, growing 15% year-over-year, its sixteenth consecutive quarter of revenue growth... Our broadband business also marked another positive quarter, with 13% sequential growth, driven primarily by healthy demand from the Division's two principal customers. At the same time, expanding our customer base remains a strategic focus of the Division and our efforts are progressing as planned," stated Rafi Maor, ECI's President and CEO.
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