13 May 2002 -- ECI Telecom has announced consolidated results for Q1 2002 ended March 31. Revenues were USD194.7m compared to USD252.5m recorded in the first quarter of 2001.
Revenues in the first quarter of last year include USD16.0 million from Business Systems, which was sold during Q4 2001. Gross profit was USD71.7m, or 37% of revenues, compared to pro forma gross profit of $63.2 million, or 25% of revenues in the first quarter of 2001.
The pro forma operating loss for the first quarter of 2002 was USD4.0m compared to a pro forma operating loss of USD48.5m one year ago. The pro forma net loss for Q1 2002 was USD8.0m, or USD0.08 per diluted share compared to a pro forma net loss of USD42.0m, or USD0.45 per diluted share in Q1 2001.
During the first quarter of 2002, the Company recorded two one-time items: a capital gain from the sale of a portion of the Company's ECtel shares of USD11.6m included in "Other income (expenses), net," and a write-off of goodwill of USD53m as a result of the initial application of FASB 142 and 144, mainly associated with InnoWave.
In Q1 2001, the Company recorded one-time items totalling USD214.4m consisting principally of an inventory write-off, a charge for impairment of assets and other items.
During the latest quarter, ECI continued to improve its balance sheet. The Company had an inflow of cash of USD140m, consisting of USD66m net cash flow from operations, USD4m from other sources, a USD50m investment from outside investors, and USD20 million in net proceeds from the sale of a portion of the Company's holdings in ECtel.