Networking hardware vendor AvayaThursday reported revenue from ongoing operations of $1.31 billion for the quarter ended Dec. 31, a decrease of 26.8 percent compared with revenue of $1.79 billion in the year-ago quarter.
The company reported a net loss of $20 million, or 9 cents per share, for the quarter, its fiscal 2002 first quarter. That compares with net income of $16 million during the same period last year.
"U.S. economic conditions in the first quarter were even tougher than we had anticipated, hitting hard in our U.S. businesses as a group, and particularly in our Connectivity Solutions business," Don Peterson, Avaya chairman and CEO, said in a prepared statement. "Outside the U.S. our revenues grew by 19 percent over the previous quarter, and even with the weakness in the U.S., we continued to strengthen our market position in key areas."
Peterson said Avaya will continue to cut costs and expenses in the coming months.
Because of uncertainty in the U.S. economy, the company expects revenue in the current quarter to be sequentially flat, with a variance of plus or minus 4 percent, said Avaya CFO Garry McGuire.
"We will closely monitor revenue levels through January and February, and make any additional adjustments to expenses, as necessary, to reflect proper expense-to-revenue levels going forward," McGuire said in a statement.
The company plans to cut from $200 million to $250 million in expenses this year in an attempt to return to profitability "no later than the end of fiscal 2002," McGuire added.