Vendor results - 29/10/06

Avaya posted 3Q06 revenues of $1.4bn, up 5%, and net income of $ 48m. Worldwide product sales rose 9%, of which IP line shipments increased over 20%. For its 2006 fiscal year, Avaya reported revenues of $5.1bn, up 5%, and a net income of $201m, down 78%.

ECI Telecom announced 3Q06 net profit of $7m, up 14%, on revenues of $170m, up 5%. In particular, ECI said it is suffering from delays in network roll-outs from DT and FT (broadband access business down), and from adjustments in the financials of Veraz Networks.

Fujitsu reports FY1H06 net revenues of $20bn, up 8%, with growth drawn by overseas sales increasing by over 25% in the period. Operating income grew 6.4% to $429m and net income was $126m, almost doubling over the period. The Technology Solutions segment reported sales increasing over 6% to $12.1bn, with overseas sales growing 23%, driven by continuing strong performance in outsourcing operations, as well as higher sales of optical transmission systems in NA. The Ubiquitous Product Solutions segment posted $4.5bn in sales (+6%)

Wavecom posted 3Q06 revenues of $56m, up 73%, and net income of $1.2m, down 63% yoy. Gross profit increased 27%, but operating income dropped 23% to $0.6m.

Microsoft announced 3Q06 net income of $3.5bn, up 10.5%, on revenues of $10.8bn, up 11%. The server division saw its turnover growing 17% in the quarter, while the entertainment division reported 70% increase in sales (6m XBox 360 units were sold). It will launch Windows Vista and Office 2007 in Nov. Those two generic software account for over half of its total turnover.

Harmonic reports 3Q06 earnings of $4m (vs loss in 3Q05), on sales of $63m, up 3%. Telecom operations account for 29% of the quarter' s revenues.

Conexant posted FY4Q06 revenues of $246m (up 14%) and FY revenues of $971m (up 34%). Gross margin increased to 45.8% in the quarter. Conexant reported a FY4Q06 net loss of $21m, 1/3 of the loss in 2005. Net loss for fiscal 2006 was $123m, better than $176m in 2005.