Vendor results - 14/1/06

Accenture reports $215m in its FY1Q06 net income (+10%); $4.2bn in sales (+12%) and $5,5bn in orders.

Avanex announced its CY4Q05 revenues could be around $36m, well below the forecast $45m. Even if gross margin is improving, it is unlikely that it could reach the 10% target. Cash flow is also going to be critical to Avanex in the coming year. The news dropped Avanex shares by 14%.

Colubris is in trouble. After laying off its CEO and 11 workers (10% of its work forces) in order to keep its costs under control. Robert Eisenberg is the New President and CEO.

Safran (France: ex Sagem + SNECMA) reports that 2005 sales rose 4,6% to €10,5bn, of which Communications activities registered a 2.6% fall in sales to €2,3bn.

Lucent warned that revenues in its 2006 fiscal year will be flat or slightly increasing, vs previous estimates of a growth in the mid-single digits (about 5,5% ). In 4Q05, Lucent could report sales of $2bn (vs expected $ 2,4bn).

Samsung Electronics reports a better-than-expected 40% rise in 4Q05 net profit, with sales growing 12%. For this year Samsung targets sales growth to be 11%.