Feeds

Nortel Networks stems red ink

Edging cautiously towards profitability

  • alert
  • submit to reddit

HP ProLiant Gen8: Integrated lifecycle automation

Nortel Networks has cut back its loses but is yet to climb back into profitability.

The Canadian networking manufacturer yesterday reported dramatically smaller Q2 loses of $14 million on reduced revenues of $2.33 billion. That compares to losses of $697 million on revenue of $2.77 billion for the same period last year. In Q1 2003, Nortel made profits of $54 million on revenues of $2.40 billion. Figures are given in US dollars.

Compared to the first quarter of 2003, Nortel's Q2 2003 Wireless Networks revenues increased four per cent, Enterprise Networks revenues decreased 11 per cent, Wireline Networks revenues decreased 12 per cent and Optical Networks revenues increased ten per cent. Income droped across the board from Q2 2002 to Q2 2003.

Gross margin was 43.7 per cent of sales in the second quarter of 2003, up from 42.9 per cent in the first quarter of 2003, and 34.5 per cent in the second quarter of 2002.

"Our second quarter results reflected the continued cautious spending exhibited by our customers," said Frank Dunn, Nortel's president and CEO, in a statement. "Although the industry conditions remained difficult, our momentum and leadership position continued across our key focus areas."

Looking ahead, Nortel said it would continue to manage its business "cautiously in the near term". The company declined to provide a forecast for Q3 beyond saying it hoped to improve its market position going forward.

Service provider wins

Highlights of some of Nortel activities during Q2 included a four-year $300 million deal to supply T-Mobile USA with mobile network switching equipment. Nortel also strengthened its position in the emerging service provider Voice over IP (VoIP) market with deals with MCI and Sprint that position the Canadian vendor in a leadership position in the market. Nortel is also beginning to build momentum in China.

Closer to home, Nortel signed two contracts with BT to deploy Nortel's OPTera Metro 5200 Multiservice platform for storage area network (SAN) connectivity services and OPTera Connect HDX optical switches in BT's pan-European networks. ®

Reducing security risks from open source software

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
Carbon tax repeal won't see data centre operators cut prices
Rackspace says electricity isn't a major cost, Equinix promises 'no levy'
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.