ECI Telecom Ltd., a global provider of advanced telecommunications solutions to leading carriers and service providers, reported financial results today for the fourth quarter and full year, ended December 31, 2005. Revenues for the fourth quarter 2005 reached $169mn, a 21% increase from the $140mn recorded in the fourth quarter of 2004 and compared to $162mn recorded in the third quarter of 2005.

For the entire year 2005, revenues rose 27% to reach $630mn. Net income for the fourth quarter of 2005 reached $7.6mn, or $0.06 per share on a fully diluted basis, compared with fourth quarter 2004 net income of $8.9mn, or $0.08 per share, prior to the acquisition of Laurel Networks, which was completed in June 2005. In the third quarter of 2005 ECI earned $6.2mn, or $0.05 per share.

For the entire year 2005 ECI's net income reached $39.9mn, or $0.34 per share, compared with $10.2mn, or $0.09 per share, in 2004. Pro forma net income for the fourth quarter of 2005 reached $10.3mn, or $0.09 per diluted share, compared with pro forma net income of $8.0mn, or $0.07 per diluted share in the previous quarter. ECI's pro forma net income differs from results reported under U.S. GAAP due to adjustments made for the following on-going, non-cash items:
* The amortisation of acquired intangible assets
* The impact of share-based compensation
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