Nortel Loss Widens in Q1

By ComputerWire Staff Computer Business Online - Wednesday, May 7 06:44 am

Canada-based network equipment company Nortel has reported a net loss of $138m for the first quarter 2008, compared to a net loss of $103m last year, on revenue up 11% at $2.75bn. The loss was attributed to $88m restructuring costs and a $12m lawsuit settlement.

Revenue from carrier networks was up 21% at $1.22bn boosted by the company's LG-Nortel joint venture. Enterprise revenue grew 7% to $641m, while revenue from global services rose 15% to $516m. However, revenue from metro Ethernet networks fell 12% to $327m.

Geographically, revenue from US declined 11% to $1.09bn, while revenue from EMEA rose 2.2% to $591m. Revenue from Canada fell 4.04% to $166m, while revenue from Asia increased 106% to $787m.

For the year, the company expects low single-digit revenue growth, with a gross margin of 43%.

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