Terabit router vendor Avici Systems this week posted third quarter results that improved upon year ago and previous quarter numbers.
Revenue for the quarter ended Sept. 30 was $10.5 million, compared to $7.3 million for the comparable period a year ago - a 44% increase. Sequentially, third quarter revenue was up 7% from the second quarter ended in June.
Net loss for the quarter was $9.1 million, or 75 cents per share, compared to $17.9 million, or $1.44 per share, in the prior year’s third quarter. For the second quarter, Avici recorded a net loss of $11.3 million, or 92 cents per share.
Revenue for the nine-month period was $27.9 million, compared with $25.8 million for the nine months ended Sept. 30, 2002. Net loss for the nine-month period was $33.1 million, or $2.70 per share, compared to a net loss of $50.7 million or $4.07 per share, for the same period last year.
Avici said the third quarter was also its first in which it was cash flow positive.
Avici's customers include AT&T, Qwest, WilTel and Huawei. AT&T contributed the bulk of the revenue in the third quarter and the only 10% or better revenue contributor.
The vendor provided no guidance going into the fourth quarter but said it is encouraged by carrier upgrade cycles.
Avici's improved results follow a solid quarter recorded by core router competitor Juniper Networks two weeks ago. Juniper posted third quarter revenue of $172.1 million, a year-over-year increase of 13%. Net income for the third quarter was $7.2 million, or 2 cents per share, compared with a net loss of $88.3 million, or 24 cents per share, in the third quarter of 2002.
Analysts expect Cisco, which reports Nov. 5, to post sequential revenue growth of 3% and earnings either in-line or a penny better than estimates of 15 cents per share. Cisco guided to a 2% to 4% sequential increase in revenue last quarter.
This story, "Avici posts improved Q3" was originally published by The Edge.