Nortel loses $2.3bn in fourth quarter


Nortel loses $2.3bn in fourth quarter

Alex Scroxton

One-time networking powerhouse Nortel Networks has sunk to yet another multi-billion dollar loss, after being hit with a $2.2bn (£1.34bn) accounting charge in the fourth quarter of its fiscal 2010.

The charges relate to a change in the accounting process for the rump of its business empire in the US.

Total losses of $2.3bn dwarfed sales of $28m, down 95.6% year-on-year, with declines across the board as its business units were sold off. Nortel currently has a cash balance of $807m.

For the full-year, Nortel reported sales of $620m and a net loss of $4.1bn.

The ongoing sales of its multi-service switching unit to Ericsson and its GDNT high-end comms JV to Ericsson China, will both have concluded by the second quarter, Nortel said.

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