Feeds

Nortel rakes it in with optical kit

Web and wireless gear also boost profits

  • alert
  • submit to reddit

Combat fraud and increase customer satisfaction

Nortel Networks saw profits jump for the second quarter on surging demand for fibre optic, Web and wireless kit.

The Canadian telecoms giant yesterday reported operating profit at $561 million for the three months ended 30 June 2000, from $320 million for the same period the previous year. This was 29 per cent higher than market forecasts.

After exceptional costs, Nortel posted a net loss of $745 million, compared with a net loss of $258 million for Q2 in 1999. Sales jumped 48 per cent to $7.82 billion from $5.28 billion.

The company said it expected sales in 2000 to grow in the low 40 per cent range, up on previous estimates of 30-35 per cent.

John Roth, Nortel president and CEO, said: "In particular, our Optical Internet, Wireless Internet and high speed Local Internet solutions revenues grew at rates of more than 150 per cent; 18 per cent; and 80 per cent respectively, over the second quarter of 1999."

"We continued to experience tremendous demand for our optical solutions as customers around the world choose to deploy our solutions in backbone and metropolitan networks."

Nortel is planning to invest $2 billion into its optical fibre business which it is reported to want to sell to rival Corning for $100 billion. The money will be spent on ramping up production.

Nortel also announced plans to create 1300 jobs in Belfast by the end of next year. The company is to invest $143 million to add 150,000 square feet to its production facility at Monkstown on the outskirts of north Belfast. US networking company Cisco Systems is also rumoured to be planning to create 3000 jobs in Dublin.

Earlier this week Nortel signed a five-year deal worth $2 billion to supply optical equipment to BT. ®

Related Story

BT hands over money for the Great British Stitch-up

Combat fraud and increase customer satisfaction

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Kingston DataTraveler MicroDuo: Turn your phone into a 72GB beast
USB-usiness in the front, micro-USB party in the back
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
BOFH: Oh DO tell us what you think. *CLICK*
$%%&amp Oh dear, we've been cut *CLICK* Well hello *CLICK* You're breaking up...
AMD's 'Seattle' 64-bit ARM server chips now sampling, set to launch in late 2014
But they won't appear in SeaMicro Fabric Compute Systems anytime soon
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
Microsoft builds teleporter weapon to send VMware into Azure
Updated Virtual Machine Converter now converts Linux VMs too
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.