Feeds

Nortel shares sink on titsup fears

Another 20 per cent

Beginner's guide to SSL certificates

Nortel shares fell another 20 per cent yesterday on stories that it has hired lawyers to explore filing for bankruptcy if its latest restructuring fails.

The telecoms equipment maker has watched its shares fall from $15 at the start of the year to just 49 cents today.

The company said yesterday that its $400m a year savings programme was on track for 2009. Responding to a story in the Wall Street Journal that it had hired advisers, Nortel said no bankruptcy filing was imminent.

The company has suffered as telcos have cut back spending or switched to cheaper suppliers. It also has a big debt to deal with - something which is getting much more expensive, especially with its share price in freefall.

Nortel said that the credit crisis was adding to its woes in September as customers cut back spending more than expected.

Mike Zafirovski, Nortel's president and CEO, said: "In September, we signaled our view that a slowdown in the market was taking place. In the weeks since, we have seen worsening economic conditions, together with extreme volatility in the financial, foreign exchange and credit markets globally, further impacting the industry, Nortel and its customers."

He said the company would take further action to cut costs; it will cut 1,300 positions and freeze salaries.

Revenue in the third quarter fell 14 per cent to $2.32bn which it blamed on the economy, competitive pressure and reduced spending by some key carriers. It made a net loss of $3.4bn in the third quarter thanks to write-offs and restructuring costs.

And of course Nortel has been here before - posting a $19.4bn loss in one quarter of 2001. .The company has been around since 1895 when it helped create Canada's phone network

It expects revenue for the full year to be near the bottom of the previously announced range.

Full statement is here. ®

The next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.