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Telephony vendor Avaya has posted a massive slump in third quarter profit due to EMEA restructuring charges.
The vendor chalked up $44m of profit for the third quarter of 2006, a drop from the $194m achieved in the same quarter last year. However, its third quarter turnover increased 4.9 per cent to $1.297bn, from $1.24bn in the same period last year.
The company’s third quarter results were affected by $22m in restructuring charges primarily in its EMEA region and a $29m asset impairment charge, the firm said.
Garry McGuire, chief financial officer at Avaya, said in a statement: "We delivered another solid quarter of product sales growth. Driven by a 23 per cent increase in IP line shipments, overall product sales rose 12 per cent, US product sales increased 15 per cent, and we shipped our 10 millionth IP line.
"While we are encouraged by these positive trends, higher costs and expenses during the quarter affected operating results. We remain focused on improving our cost and expense profile across geographies and businesses, particularly in Europe," added McGuire.
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