By Tony Hallett, 20 July 2001 08:20
NEWS Nortel has confirmed the worst - taking into account acquisition cost write-offs, it has turned in a $19.4bn second quarter loss. Although only just above the figure put out in a warning in June, the communications equipment maker will also want to put behind it a declining year-on-year revenue. Sales were $4.61bn for the quarter down from $7.21bn for the corresponding period last year. Its pro forma loss stood at $1.55bn compared to a profit of $637m a year ago. Despite the poor performance - the Q2 loss is the second largest for three months in corporate history - CEO John Roth said he is pleased with the progress being made on the company's 'return to profitability' plan. So far this year the Canadian company has sacked or announced plans to lay off 30,000 employees, and will now concentrate on several core businesses: optical switching, metro optical equipment, IP networking gear, 3G wireless telecoms infrastructure, and IP services for telecoms carriers and enterprises.
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