Avaya ( AV) swung to a second-quarter profit Tuesday, as the communications networking company benefited from some big customer wins.

For its second quarter ended March 31, the Basking Ridge, N.J., company posted a continuing operations profit of $103 million, or 22 cents a share, reversing the year-ago continuing operations loss of $55 million, or 14 cents a share. Revenue rose 5% to $1 billion.

"This quarter's performance clearly demonstrates Avaya's continued ability to successfully execute against our business model," CEO Don Peterson said. "We grew revenue, expanded operating margins and increased cash flow. At the same time, we completed the integration of Expanets a full quarter ahead of schedule, reduced debt and took further steps to globalize our business with the announcement of our intent to acquire a majority stake in Tata Telecom."

The company said third-quarter revenue should rise sequentially, and that it is "well-positioned to achieve its 10% to 12% operating margin goal for the second half of fiscal year 2005."

After sliding 82 cents in regular trading, Avaya rose 43 cents in postclose action to $15.95.