Excluding the cost of its spinoff last year from Lucent Technologies, Avaya Inc. posted strong second-quarter profit growth today, with net income from ongoing operations hitting $78 million, or 25 cents a share, versus net income of $37 million, or 13 cents, a year ago. Avaya had been projected to earn 23 cents a share for the quarter, ended March 31.
Including birthing costs, Avaya would have reported a net loss of $64 million, or 25 cents. The company's revenue from ongoing operations for the quarter, however, was nearly flat, rising to just 1.1--$21 million--to $1.852 billion, compared to the same period last year.
Avaya CFO Garry McGuire says the company had projected revenue growth for the year to be in the mid-single digits, but in light of general economic conditions, that had been revised 2% to 5%.
The company remains on track to meet its projection that it would more than double its profit in the year, McGuire says.