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. ®

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.