Nortel Trims Losses On Decline In Revenue

Jul 24, 2003 (02:07 PM EDT)

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Nortel Networks on Thursday posted a small loss for its second quarter, blaming weak sales and cautious spending in difficult economic conditions.

For the second quarter of 2003, which ended June 30, Nortel posted a net loss of $14 million, or zero cents per share, up from losses of $697 million, and 20 cents per share, in the same quarter of 2002. Revenue was $2.326 billion, down from $2.773 billion in the same quarter last year.

Nortel's traditional networking businesses are continuing to suffer from a hardware glut created during the Internet boom years. Wireline network revenue was down 12% for the quarter, and enterprise network revenue was down 11%. But newer technologies are showing some life. Nortel saw some growth in the wireless networking part of its business, where revenue grew 4%, and its optical networking business also was up, with revenue rising 10%.

The negative results come only one quarter after Nortel claimed a profit for the first time in three years. Nortel hasn't yet offered any projections on future results.