* Also: Avici records a third quarter profit; and Verizon sets spinoff of directories
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Juniper posted third quarter revenue generally in line with analyst estimates but did not disclose earnings due to an ongoing stock option backdating investigation.
Net revenue for the period ended Sept. 30, 2006, was $573.6 million, compared with $546.4 million for the same quarter last year, an increase of 5%. Analysts queried by Thomson Financial Network were expecting third quarter revenue to come in at $573.05 million. For the fourth quarter, Juniper expects revenue of $590 million to $595 million, and earnings, excluding expenses and other items, of 19 cents per share.
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Avici Systems recorded a third quarter profit on revenue that more than doubled from the year ago period. For the period ended Sept. 30, 2006, Avici posted gross revenue of $20.2 million compared to $8.7 million for last year’s third quarter. Net income, excluding charges for restructuring, common stock warrant discount, certain stock based compensation, inventory and settlement credits, was $5.7 million, or $0.41 per share, compared to a net loss of $7.2 million, or $0.56 per share, in the third quarter of 2005. Avici announced earlier this year that it would pare almost half its staff and seek “strategic alternatives” – such as a sale of the company or of certain assets – in an effort to gain profitability.
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Verizon said its board of directors approved the proposed spinoff of the carrier’s U.S. print and Internet yellow pages directories business. The spinoff will result in a new public company that will be separate from Verizon called Idearc. Idearc will be based in Dallas/Fort Worth and will employ 7,100. Verizon’s directories business accounts for $3.5 billion in revenue but directories are not core to Verizon’s plans to focus on fiber-based Internet and video, and wireless for future growth. Idearc stock will trade on the New York Stock Exchange under the symbol IAR.
