06:09 PM

Nortel Trims Losses On Decline In Revenue

Networking vendor blames weak sales on cautious spending and difficult economic conditions.

Nortel Networks on Thursday posted a small loss for its second quarter, blaming weak sales and cautious spending in difficult economic conditions.

For the second quarter of 2003, which ended June 30, Nortel posted a net loss of $14 million, or zero cents per share, up from losses of $697 million, and 20 cents per share, in the same quarter of 2002. Revenue was $2.326 billion, down from $2.773 billion in the same quarter last year.

Nortel's traditional networking businesses are continuing to suffer from a hardware glut created during the Internet boom years. Wireline network revenue was down 12% for the quarter, and enterprise network revenue was down 11%. But newer technologies are showing some life. Nortel saw some growth in the wireless networking part of its business, where revenue grew 4%, and its optical networking business also was up, with revenue rising 10%.

The negative results come only one quarter after Nortel claimed a profit for the first time in three years. Nortel hasn't yet offered any projections on future results.

Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
2014 Next-Gen WAN Survey
2014 Next-Gen WAN Survey
While 68% say demand for WAN bandwidth will increase, just 15% are in the process of bringing new services or more capacity online now. For 26%, cost is the problem. Enter vendors from Aryaka to Cisco to Pertino, all looking to use cloud to transform how IT delivers wide-area connectivity.
Register for InformationWeek Newsletters
White Papers
Current Issue
Top IT Trends to Watch in Financial Services
IT pros at banks, investment houses, insurance companies, and other financial services organizations are focused on a range of issues, from peer-to-peer lending to cybersecurity to performance, agility, and compliance. It all matters.
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on for the week of July 17, 2016. We'll be talking with the editors and correspondents who brought you the top stories of the week to get the "story behind the story."
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.