Communications systems player Nortel Networks, which employs around 900 people across the Republic and Northern Ireland, has reported first-quarter revenues of US$2.38bn, essentially flat year over year.
The company reported a net loss in the first quarter of US$167m, which included an income tax expense of US$23m, a shareholder litigation expense of US$19m and various adjustments.
The company reported a cash balance of US$2.7bn for the first quarter.
Revenues from the companies Mobility and Converged Core Networks divisions were US$1.4bn, a decrease of 4pc compared with the year-ago quarter and a decrease of 23pc sequentially.
Enterprise Solutions and Packet Networks revenues were US$871m, a decrease of 1pc compared with the year-ago quarter and a decrease of 15pc sequentially. Nortel said revenues in both segments were impacted by the timing of certain contracts as both deferred revenues and backlog increased at quarter end by US$140m and US$275m, respectively.
“While our results reflect a challenging first quarter,” Nortel chief executive Mike Zafirovski said, “we continue to expect good revenue and operating margin momentum commencing in the second quarter in line with our previously communicated full-year plan.
“We remain focused on our business transformation initiatives, integrity renewal and short-term growth opportunities while concurrently building the long-term foundation for the new Nortel.”
Looking at the company’s outlook for the full year 2006, Nortel’s chief financial officer Peter Currie predicted strong revenues for the rest of 2006, resulting in single-digit growth for the full year 2006.
By John Kennedy