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Avaya posts fourth-quarter profit

The networking equipment maker reports its second consecutive quarter of profits, citing cost-cutting and strength in its Internet telephony business.

Networking equipment maker and services provider Avaya reported its second consecutive quarter of profits on Tuesday, citing cost-cutting and strength in its Internet telephony business.

Avaya was spun off from Lucent Technologies three years ago and has struggled due in part to a sharp pullback in spending on telecommunications equipment by potential customers.

The Basking Ridge, N.J., company said it earned net income of $66 million, or 15 cents a share, for its fiscal fourth quarter, ending Sept. 30. Avaya said net income was boosted by a $46 million gain from changes in its pension plan.

Tuesday's results compare with a $544 million loss for the same period a year ago. Revenue was down slightly at $1.12 billion compared with $1.15 billion in the fourth quarter of 2002.

Revenue for fiscal 2003 was $4.34 billion compared to $4.96 billion for 2002, a decline of 12.5 percent. For the year, the company had a net loss of $88 million compared with a net loss of $666 million for fiscal 2002.