Avaya Reports Fourth Fiscal Quarter and Fiscal Year 2005 Results - Oct 25, 2005 04:05 PM (PR Newswire)
- U.S. Revenues Increase 7.1 Percent Sequentially
- Sales of Products Grew 11.5 Percent Sequentially
- Operating Cash Flow in Quarter Was $148 Million
BASKING RIDGE, N.J., Oct. 25 /PRNewswire-FirstCall/ -- Avaya Inc., (NYSE:AV) a leading global provider of business communications applications, systems and services, today reported income from continuing operations of $660 million or $1.36 per diluted share in the fourth fiscal quarter of 2005.
These results reflect a net favorable impact on earnings of $565 million, which includes a net income tax benefit of $590 million related to the reversal of a portion of a valuation allowance for deferred tax assets, a $22 million restructuring charge for headcount reductions and lease terminations, and $3 million of in-process research and development costs related to the company's acquisition of Nimcat Networks. Excluding these items, the company would have had income from continuing operations of $95 million and earnings per diluted share of 20 cents in the fourth fiscal quarter. (See table for details.)
In the same quarter last year the company reported income from continuing operations of $100 million or 21 cents per diluted share. Those results reflected a reversal of reserves for sales returns and allowances which had a $12 million favorable impact on operating income. Excluding that item, earnings per diluted share in the year ago quarter would have been 19 cents. (See table for details.)
Avaya's fourth fiscal quarter 2005 revenues increased to $1.296 billion, due to acquisitions, compared to revenue of $1.076 billion in the fourth fiscal quarter of 2004. The company noted that fourth fiscal quarter 2004 revenues also included $14 million related to the reversal of reserves discussed above.
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