Feeds

Nortel reports narrowed losses

Sheds 3,000 more jobs

  • alert
  • submit to reddit

Intelligent flash storage arrays

Nortel yesterday reported narrowed Q1 losses of $841m, compared to $2.58bn a year ago, on declining sales of $2.91bn, a little over half the $5.75bn it recorded in Q1 2001.

Revenues fell for the fifth quarter in a row, forcing Nortel to announce it would shed 3,000 more jobs as part of its ongoing restructuring. The latest cuts will drop its workforce to around 44,000, less than half the 94,500 the telecoms manufacturer employed in January 2000.

The cuts are designed to reduce Nortel's outgoings so it can reach breakeven on sales of $3.5 billion by Q4.

Frank Dunn, president and chief executive officer of Nortel, said it didn't expect significant changes in its revenues next quarter.

Capital expenditure by Nortel's telco customers continues to be limited so Nortel will "focus on building momentum in the market, and gain efficiencies across our business processes", he added.

Compared to Q4 2001, overall Wireless Networks revenues for Nortel decreased 6 per cent in Q1 2002, with a considerable increase in Canada and a slight increase in Europe, which was more than offset by a decrease in the United States and significant declines in Latin America and Asia. Metro and Enterprise Networks revenues decreased 23 percent for the quarter but Optical Long-Haul Networks revenues increased 5 percent, making it one of the few bright spots for the company. ®

Related Stories

Nortel misses revenue forecast
Motorola & Nortel 'merging wireless kit divisions'
Lucent expects recovery to be delayed
Nortel CFO quits over pension claims
Nortel in black pit of despair
Nortel intros europartner prog

Choosing a cloud hosting partner with confidence

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?