Nortel profits from sell-off process
Defunct networking vendor Nortel has booked net profits of $355m (£245m) in Q1 - reversing losses of over $500m this time last year - as cash continued to pour in from the various sales of its remaining business units.
Nortel made consolidated sales of $484m, excluding $180m related to Equity Investees and $10m related to discontinued operations, which includes some residual contracts not transferred to Avaya. Revenues across all the remaining business segments were down.
During the quarter, the vendor completed the disposal of both its optical networking and carrier Ethernet business and its GSM/GSM-R business to Ciena, Ericsson and Kapsch respectively. It will record some residual sales from those units during Q2.
In a statement it said its focus continued to be on "maximising value for stakeholders, including creditors, customers and employees."
The firm is also now understood to be seeking a buyer for approximately 4,000 patents - mostly concerning LTE technology - that constitute its last remaining assets.
The sale, which would be a far more secretive process than the divestiture of its business units, could net the business close to $1bn, but would also be Nortel's swansong.