Updated from July 27Avaya ( AV) posted a fiscal third-quarter profit Tuesday, sending its shares 8% higher in early Wednesday action. For its third quarter ended last month, the Basking Ridge, N.J., maker of business phone systems posted net income from continuing operations of $58 million, or 12 cents a share. That reverses the year-ago continuing operations loss of $3 million, or a penny a share. Revenue rose to $1.02 billion from $929 million a year earlier. Analysts were looking for an 11-cent profit on $1 billion in sales. "We're seeing increasing signs that customers are migrating to IP telephony to help them improve their business processes," CEO Don Peterson said in a press release. Meanwhile, the company remains cautiously optimistic in its outlook for the fourth quarter ending in September. Avaya says that even though the fiscal fourth quarter ending in September is its strongest quarter, execs are holding with their cautiously optimistic outlook. The company forecast "higher sales expenses in the fourth fiscal quarter resulting from normal year-end increases in sales commission payments and a modest increase in marketing expenses as it drives to increase market share and strengthen brand positioning." Analysts expect Avaya to show a 16-cent profit on $1.05 billion in sales, according to a Reuters Research tally. Early Wednesday, Avaya rose $1 to $13.50.
Even though AT&T tried a last-minute bribe of promising 5,000 new U.S. jobs to help gain support for the deal, the Justice Department filed a complaint to fight the combination of the nation's No. 2 and No. 4 wireless carriers.