TORONTO—Nortel Networks Corp. warned that reduced customer spending will pare down its first-quarter revenue below market forecasts and force it to draw on a $1.75 billion loan.
The telecom gear maker said it expects about $2.9 billion in revenue as against $3.01 billion.
“Customers are showing more resolve than originally anticipated to minimize spending in the near term,” said Frank Dunn, the company’s chief executive.
