Avici cash-flow positive in Q2

Avici Systems turned cash-flow positive in the second quarter based on a profit of US$8.5 million and sales of US$25.3 million for the period ended June 30.

Sales more than doubled from the US$11.6 million posted in the second quarter of 2005.

"Due to a surge and acceleration in demand this quarter's revenue and bottom line results have far exceeded our expectations and resulted in the company turning cash flow positive," said Avici CEO Bill Leighton, in a statement. "We expect to continue to see strong revenue and bottom line results in 2006, but caution that the business conditions driving this increased demand can change significantly."

Avici recently restructured, cutting 45 percent of staff, to attain and maintain profitability at a certain baseline of revenue. Avici expects to "substantially exceed" that revenue baseline this year, Leighton stated.

Avici's chief revenue contributor is AT&T.

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