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TMCNet: Nortel narrows loss in weak Q3

[November 18, 2009]

Nortel narrows loss in weak Q3

Nov 18, 2009 (Datamonitor via COMTEX) -- Network equipment vendor Nortel Networks has reported a net loss of $508m for the third quarter 2009, compared to a loss of $3.4 billion in the same quarter last year. Revenue was down 35% at $1.05 billion. The net loss included loss from discontinued operations of $164m and reorganization costs of $223m.


The company reported Enterprise Solutions, Nortel Government Solutions and DiamondWare businesses as discontinued operations for the quarter. During the quarter, chief executive Mike Zafirovski resigned from the company.

The Canada-based company said wireless network revenue fell 18% to $663m, while carrier VOIP and application solutions revenue increased 14% to $208m. Metro Ethernet networks revenue fell 26% to $295m, LG-Nortel revenue declined 51% to $103m, and revenue from others increased 150% to $2m.

Geographically, US revenue increased 25% to $736m, while EMEA revenue fell 97% to $10m. Canada revenue decreased 12% to $82m, Asia revenue fell 62% to $162m, and Caribbean and Latin America revenue fell 54% to $55m.

For the nine-month period, the company reported a net loss of $1.3 billion, compared to $3.5 billion in the same period last year. Revenue was down 41% at $3.3 billion.

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