Avici shares up after profit, sales surge

Shares of Avici Systems Inc. jumped today after the networking technology company said its fourth-quarter profit multiplied nearly tenfold as revenue from its Internet routing products soared and operating costs declined.

The company, which is changing its name to Soapstone Networks, earned 29.2 million, or $1.90 per share, up from a profit of $3 million, or 21 cents per share, in the same period a year earlier.

Revenue jumped to $44.8 million from $15.9 million.

Product sales were $42.1 million, up from $14 million a year earlier.

Operating costs fell 13 percent to $8.1 million as research and other expenses declined.

For the full year, the company earned $62.3 million, or $4.16 per share, up from a profit of $8.3 million, or 60 cents per share, in 2006.

Revenue rose to $124.3 million from $82.2 million.

Shares rose 98 cents, or 13.8 percent, to $8.23 in late morning trading. The stock has traded between $5.76 and $13.96 in the past 52 weeks. (AP)