Nortel Issues Mediocre Q1 Results
Revenues were US$6.18 billion for the first quarter of 2001 compared to US$6.32 billion for the same period in 2000. Net loss from operations applicable to common shares(b) for the quarter was US$385 million, or US$0.12 per share, compared to net earnings from operations of US$347 million, or US$0.12 per share on a diluted basis, for the same period in 2000. Including Acquisition Related Costs(b), stock option compensation from acquisitions, and one-time gains and charges, Nortel Networks recorded a net loss applicable to common shares for the first quarter of 2001 of US$2.58 billion or US$0.82 per share.
"Our revenues in the quarter reflected reduced capital spending by service providers and enterprises resulting from tighter capital markets and a severe slowdown in the U.S. economy," said John Roth, president and chief executive officer, Nortel Networks. "As anticipated, we saw substantially lower sales in Optical Inter-city solutions. We saw slightly lower sales for our Local Internet solutions, driven by a sharp reduction in circuit switching, which was nearly offset by considerable growth in our industry leading Optical Metro and Core IP Network solutions. We also saw strong growth in Wireless Internet solutions in the quarter driven by our IP, personalization and services enabling capabilities."
Nortel Networks Corp.