ECI Telecom (Nasdaq:ECIL) met forecasts for the second quarter, announcing a 29% slide in revenues to $188.3 million, versus $266.4 million in the parallel quarter of the previous year.

Revenues were also low compared with the first quarter of 2002, when the Israeli tech company brought in $195 million.

At the bottom line ECI lost a net $7.5 million, or 7 cents per share, on the dot of the average analyst forecast. Its loss was almost 80% less than the $36 million lost in the corresponding quarter of 2001.

The company reported an operating loss of $4.2 million, an improvement against the $34.6 million posted for the parallel.

The company's balance sheet structure improved during the last quarter. The company repaid $13.3 million to the banks and its cash position climbed to about $88 million, compared with $53 million at the end of the first quarter.

To sum up the first half of 2002, ECI's revenues were $383 million, 26% less than in the parallel half of the prior year. Its net loss was $59.5 million, or 22 cents per share, against losing $292.4 million or $3.16 per share in the corresponding six months of 2001.

On its expectations, ECI said that its market is expected to continue deteriorating in the second half. It expects its revenues to contract by 13% to 17% in the third quarter compared with the second, meaning, to a range of $156 million to $163 million.

All ECI's component units reported a worsening of results in the second quarter. Lightscape, its optical communications division, presented quarterly revenues of $45.1 million, down 18% from the parallel quarter. Its quarterly losses shrank, however, to $3.5 million, from $5.6 million.

Inovia, ECI's access unit, presented quarterly revenues of $72.6 million, 6% less than in the second quarter of last year. It presented impressive improvement by passing to an operating profit of $1.9 million, from an operating loss of $21.9 million in the corresponding quarter of 2001.

NGTS next-generation telephony services posted revenue of $15 million, 30% down from the parallel, and an operating profit of $90,000, compared with an operating loss of $2.3 million in the same quarter of 2001.

Innowave, the wireless access division, recorded a 59% slide in sales to $14.2 million, and an operating loss of $950,000, down 69% from the parallel.

The cross-connect unit Enavis did badly, with an operating loss ballooning 34% from $1.5 million to $2 million year to year, and revenues down half to $15.1 million.

If you liked this article you might like

Nessuah Zannex: Rating cut's main damage is to banks' images to foreigners

Nessuah Zannex: Rating cut's main damage is to banks' images to foreigners

Yes recruitment rate down to 6,000 a month

Yes recruitment rate down to 6,000 a month

Cadence to invest in Israeli startups

Cadence to invest in Israeli startups

Court grants Mentergy 40-day stay of proceedings

Court grants Mentergy 40-day stay of proceedings

Leader & Co sees Discount shifting to profit in Q3

Leader & Co sees Discount shifting to profit in Q3