TORONTO-In a surprise turnaround, Nortel Networks posted a profit, a quarter ahead of its forecast and a result stronger than market expectations.
The company enjoyed a first-quarter profit of $54 million, or 1 cent per share, in contrast to a loss of $841 million, or 26 cents per share in the same period last year.
In spite of the apparent upbeat report and corresponding jump in stock, the company is cautious.
“Given the ongoing economic and geopolitical uncertainty, customers continue to spend cautiously,” said the company. “As a result, the company currently expects the capital spending levels in the second quarter of 2003 to be similar to the first quarter of 2003.”
