posted fourth-quarter earnings that fell 56% from a year ago, indicating that the results of its spinoff from
were mixed as the company executes its plans for long-term growth.
The company, an enterprise networks spinoff from Lucent, began trading on Oct. 2. Avaya reported income from ongoing operations of $20 million, or 7 cents a share, down from $45 million, or 16 cents a share, in the same period last year. According to
First Call/Thomson Financial
, one analyst expected the company to earn 3 cents a share for the period.
Revenue from ongoing operations for the quarter fell 6.5% to $2.02 billion from $2.16 billion.
The company is targeting a revenue increase in the mid-single digits in 2001. Avaya expects net income to more than double in fiscal 2001. For fiscal 2000, the company reported ongoing revenue of $7.44 billion compared with revenue of $7.57 billion a year ago. Income from ongoing operations in fiscal 2000 was $156 million, or 55 cents a diluted share, excluding business restructuring and charges associated with the spinoff from Lucent.