Feeds

Nortel shares sink on titsup fears

Another 20 per cent

Bridging the IT gap between rising business demands and ageing tools

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. ®

Application security programs and practises

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
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
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
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.