ECtel (Nasdaq:ECTX) today presented its results, breaking quarterly revenue records.

The company, which develops monitoring and quality assessment systems for communications companies, reported revenue of $24.2 million for the second quarter of 2002, compared with $19.3 million for the parallel quarter of last year growth of 25%.

Gross profit grew by 31% to $14.4 million, compared with $11 million in the corresponding quarter of 2001, after giving effect to reclassification of royalties to the Israeli Industry and Trade Ministry from sales and marketing expenses to cost of sales, in accordance with guidelines set forth in an SEC release.

Operating income (excluding stock-based compensation) for the second quarter of 2002 rose 23% to $4.4 million compared with $3.6 million in the same period of 2001.

Stock-based compensation for the quarter was $116,000 compared with $673,000 for the second quarter of 2001.

Net income (excluding stock-based compensation) rose by 20% to $4.4 million, or $0.24 per fully diluted share, up from $3.7 million, or $0.21 per fully diluted share, for the corresponding quarter of 2001.

For the first half, operating income (excluding stock-based compensation) increased by 23% to $8.6 million, compared with $7.0 million in the same period of 2001.

Stock-based compensation for the first six months was $289,000 compared with $1,345,000 for the first half of 2001. Net income for the period (excluding stock-based compensation) increased by 19% to $8.7 million, or $0.47 per diluted share, up from $7.3 million, or $0.42 per fully diluted share for the first half of 2001.

"FraudView continues to be our sales leader, as more and more telecom service providers seek to stop the fraud scams that rob them of their hard-earned revenues," commented ECtel president and CEO Aharon Shech.

"Our major FraudView successes during the quarter included a new frame agreement with O2 (formerly BT Cellnet), a 3- year frame agreement extension with Belgacom, and the sale of NGN FraudView to a new H3G (Hutchison) affiliate under our H3G frame agreement.

"We are also pleased by successful results from several Next-Gen quality of service tests that are being carried out by major telcos," Shech said.