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Nortel reverses losses at long last

Alex Scroxton
The closing down fire-sale of Nortel's business units in 2009 has ironically accomplished what the vendor's management team spectacularly failed to do and reversed its full-year net losses.

During the last three months of the financial year, the networking vendor made a net profit of $1.78bn (£1.18bn), while for the full year it banked $488m.

The fourth quarter figures were buoyed by a $689m gain primarily related to the sale of the enterprise unit to Avaya and $1.26bn relating to the sale of the CDMA/LTE business to Ericsson.

Fourth quarter sales rose to $794m, excluding revenues of $367m related to Equity Investees and $300m related to discontinued operations. Full year sales fell 46% year-on-year to $4.09bn.

Nortel put its declines chiefly down to the uncertainty that surrounded its operations over the past 14 months, and reaffirmed its current policy of attempting to "maximise value" for stakeholders, creditors, customers and employees.

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