Avici Systems hit with Q3 loss
Thursday October 20, 3:06 pm ET
Thanks to a flattening in revenue from its biggest customer AT&T Corp., Avici Systems Inc. failed to register its fifth straight quarter of increased revenue.
The company sells large Internet routers, and recently landed a contract with a Turkish telecommunications company. Avici (Nasdaq: AVCI - News) is based in Billerica, Mass., and employs approximately 200 people.
Avici lost $7.8 million on $8.7 million in sales in the third quarter. It marked the first time in over a year that its losses deepened on a sequential basis, surprising analysts who had expected $12 million in sales.
The company significantly improved on its performance in the third quarter of 2004, however, when it lost $10.4 million on a mere $3.1 million in revenue.
In the second quarter of this year, Avici lost $2.6 million on $11.1 million in revenue.
"While our revenue pattern continues to vary on a quarterly basis, I am looking forward to continued network expansion of our current customers and the addition of new customers in the coming quarters," said William Leighton, chief executive of Avici, in a statement.
Avici closed out the quarter with $59 million in cash and short-term securities |
