News
News
11/2/2005
12:21 PM
50%
50%

Brief: Nortel 3Q Loss Narrows Despite Charges

The communications company posted a third-quarter loss of $105 million, or 2 cents per share, on sales of $2.66 billion, compared with a net loss of $259 million, or 6 cents per share, on sales of $2.18 billion in the year-ago quarter.

MANHASSET, N.Y. — Communications company Nortel Networks Corp. posted a third-quarter loss of $105 million, or 2 cents per share, on sales of $2.66 billion in the third quarter, compared to a net loss of $259 million, or 6 cents per share on sales of $2.18 billion in the year-ago third quarter.

The third-quarter loss included special charges of $37 million related to restructuring activities and a net charge of $20 million related to the re-filing of Nortel’s tax returns as a result of the financial restatements. Third-quarter results also included adjustments related to prior periods that increased the net loss by $15 million.

Nortel (Toronto) saw double-digit, year-over-year increases in revenue for carrier packet networks, enterprise networks, and GSM and UMTS networks, and a slight increase in CDMA network revenue. Gross margin was 38 percent of revenue.

Last month, Nortel chief executive Bill Owens announced he would leave the company, with former Motorola executive Mike Zafirovski replacing him.

For the fourth quarter, Nortel expects revenue to grow 13 percent year over year, with gross margin of 40 to 44 percent.

Comment  | 
Print  | 
More Insights
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest, Dec. 9, 2014
Apps will make or break the tablet as a work device, but don't shortchange critical factors related to hardware, security, peripherals, and integration.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of December 14, 2014. Be here for the show and for the incredible Friday Afternoon Conversation that runs beside the program.
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.