ECI Telecom reported third-quarter revenue of $162 million, a 26% increase from the $128 million recorded in the third quarter of 2004 and up 6% compared to the $153 million recorded in the second quarter of 2005. Net income for the quarter was $6.2 million, or $0.05 per share on a fully diluted basis. That’s up just slightly from the $6.0 million reported in the third quarter 2004 net and down significantly from the $15.6 million, or $0.13 per share, in the second quarter of 2005. The company acquisition of Laurel Networks earlier this year had a significant impact with the newly acquired group reporting a $7.7 million loss on $2 million in revenue.

Doron Inbar, president and CEO of ECI, said the company was starting to see some important revenue streams develop from its carrier customers deploying IPTV services and expanding broadband initiatives. Though he wouldn’t name the specific customer, Inbar said ECI was playing a major role in at least three carrier IPTV rollouts.

“We have three customers who are using the IPDSLAM for TV applications,” he said during the earning call this morning. “When we’re talking about major [carriers], we’re talking about tens of thousands, and getting to hundreds of thousands, of subscribers.”

One customer, where ECI is the only supplier already has started offering IPTV. Another is planning to roll out high-definition video over a broadband network in 2006.

“We have been notified that we are expected to provide a significant amount of the equipment for this initiative,” Inbar said.

On a business segment basis, the company’s broadband group accounted for $68 million in revenue for the quarter, up 26% from the year ago period and up 8% from the second quarter of 2005. Operating income for the Broadband Access Division was $4.5 million, compared to $6.4 million in both the year ago and second quarter 2005 periods. Income, as well as a slight decline in margin was impacts by ECI’s move into emerging markets such as China and India where fierce competition is forcing it to slash prices, Inbar said.