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Avaya - Chmn. & CEO Interview.

The America's Intelligence Wire

| April 28, 2004 | COPYRIGHT 2004 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From CEOWire)

Byline: Liz Claman

LIZ CLAMAN, CNBC ANCHOR: Avaya swung to a profit in its second quarter as corporate customers increased spending on IT equipment, the maker of communications gear earned 27 cents a share, excluding discontinued operations and other items, Avaya earned 5 cents, that`s 2 cents shy of estimates but revenue rose 6 percent. Joining us now to talk about this is Donald Peterson, chairman and CEO of Avaya.

Good morning.

DONALD PETERSON, CHMN. & CEO, AVAYA: Good morning.

CLAMAN: People could focus on the fact that you were a bit light on that bottom line number, but it -- you topped $1 billion in sales, I thought perhaps that was more of the story, that perhaps from your perch it appears that business is back. Can you expound upon how much you really see business coming back or is it just a one-quarter deal?

PETERSON: Revenue is up year-over-year about 5 1/2 percent, which is certainly better than it has been. Sequentially it was up about 3 1/2 percent. I might add that I think we would interpret the numbers a little bit differently. We saw ourselves reporting on a continuing operations basis about 8 cents, so actually 1 cent better. And I`m going to have to do some work when we get off the air and find out why some people think it was 5 because I thought it was between 8 and 9.

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