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From the News Desk
Wednesday, 7. June 2006
Nortel Q1 Loss Widens on Weak Sales
Communications equipment maker, Nortel Networks Corp. has reported a wider first-quarter loss of USD 167 million, or 4 cents a share, compared with loss of USD 104 million, or 2 cents a share in the year-ago quarter.
The company had already warned that the net loss would be wider due to declining revenue in almost all its geographical areas. Analyst on average were expecting the company to post a loss of 2 cents a share, according to Reuters Estimates.
Revenue for the first quarter dropped slightly to USD 2.382 billion from USD 2.389 billion a year earlier.
The latest quarter results were impacted by slower sales and higher expenses. The company had also missed the deadline for filing the quarter’s results due to accounting problems.
The company said its loss included an income tax expense of about USD 23 million, a shareholder litigation expense of USD 19 million and USD 35 million in gains on the sale of businesses and assets.
Announcing the results said Mike Zafirovski, president and chief executive officer, Nortel said, "While our results reflect a challenging first quarter, we continue to expect good revenue and operating margin momentum commencing in the second quarter, in line with our previously communicated full year plan."
The company had already warned that the net loss would be wider due to declining revenue in almost all its geographical areas. Analyst on average were expecting the company to post a loss of 2 cents a share, according to Reuters Estimates.
Revenue for the first quarter dropped slightly to USD 2.382 billion from USD 2.389 billion a year earlier.
The latest quarter results were impacted by slower sales and higher expenses. The company had also missed the deadline for filing the quarter’s results due to accounting problems.
The company said its loss included an income tax expense of about USD 23 million, a shareholder litigation expense of USD 19 million and USD 35 million in gains on the sale of businesses and assets.
Announcing the results said Mike Zafirovski, president and chief executive officer, Nortel said, "While our results reflect a challenging first quarter, we continue to expect good revenue and operating margin momentum commencing in the second quarter, in line with our previously communicated full year plan."
