Struggling Nortel has blamed the economy for its currentwoes after posting losses for its first quarter.
The Canadian telco, which filed for bankruptcy earlier thisyear, reported a 37% drop in revenues to $1.73bn and a net loss of $507mcompared to a loss of $138m for the first quarter last year.
Contributing to the numbers was a $59m restructuring chargeand a lower level of completed contract business.
There was some better news around the vendor’s drive tocontrol costs with operating expenses dropping by 15% year-on-year.
Drilling down to the individual business units there were reductionsacross the board with enterprise solutions dropping by 41% to $395m and carriernetworks decreasing by 32% year –on-year to $737m.
Nortel’s president and CEO Mike Zafirovski said that it hadexpected revenues and margins to be down because of the current state of theeconomy.
He hinted that it was contuining to evaluate the directionof the company as it operated in a creditor protection status in Canada and Chapter 11 in the US.
“Discussions are taking place with various external parties,however, decisions have not been taken and we continue to evaluate ourrestructuring alternatives. To provide maximum flexibility we are alsotaking the appropriate steps to complete the move to standalone businesses,” hesaid.
Join the conversationComment
Share
Comments
Results
Contribute to the conversation