Avaya Reports A Profit, Thanks To Renewed IT Spending
Companies are spending more on telecom equipment, including voice-over-IP hardware, execs say.
Communications-equipment maker Avaya Inc. broke into the black during its first quarter, thanks to what it sees as a rebound in corporate IT spending.
For the quarter ended Dec. 31, Avaya posted a profit of $10 million, or 2 cents per share, up from a loss of $121 million, or 33 cents per share, a year ago. When costs from discontinued operations are factored out, the company had income of $30 million, up from a loss of $125 million. Revenue was up 3%, to $971 million, from $946 million a year ago.
Avaya said the positive earnings are due in part to companies spending more on telecom equipment, including voice-over-IP hardware, as the economic picture improves. "The economy appears to be maintaining," said CEO Don Peterson, on a conference call. "And business optimism, while fragile, is stable."
5 Top Federal Initiatives For 2015As InformationWeek Government readers were busy firming up their fiscal year 2015 budgets, we asked them to rate more than 30 IT initiatives in terms of importance and current leadership focus. No surprise, among more than 30 options, security is No. 1. After that, things get less predictable.