Nortel Networks Ltd. stock dipped more than 3 percent in pre-market trading this morning after it reported second-quarter revenues of $2.56 billion and a net loss of $37 million, or 7 cents per share. (See Nortel Reports 2Q07.)

Wall Street had been expecting revenues of $2.75 billion and earnings of 8 cents per share. Nortel's stock dipped by $0.73 cents, more than 3 percent, to $21.01 in pre-market trading this morning.

Gross margin was 41.1 percent (the highest in 2 years), compared with 38.4 percent a year ago.

Revenues in the Carrier Networks business unit were $1.06 billion, down 16 percent compared with a year ago, but up 5 percent sequentially. That number was hit by the sale of Nortel's 3G access business -– without that impact, carrier networks revenues are down 5 percent compared with last year. (See Alcatel Snags Nortel 3G Unit.)

The Global Services business was also hit by the sales of the UMTS access unit. Its second-quarter revenues were $494 million, down 9 percent compared with a year ago. Excluding the impact of the 3G business sale, services revenues were down by year on year.

The Enterprise Solutions unit reported revenues of $590 million, up 23 percent from a year ago.

Nortel is hosting a conference call today, during which it will provide further details.

— Ray Le Maistre, International News Editor, Light Reading