TORONTO-Nortel Networks Corp. reported audited fourth-quarter and full-year 2004 results after a lengthy delay.
Revenues for the fourth quarter fell nearly 20 percent to $2.62 billion from $3.27 billion the company reported during the final quarter of 2003, but up sequentially from $2.18 billion it reported during the third quarter of 2004. Wireless Networks contributed revenues of $1.28 billion during the quarter.
Net earnings for the quarter totaled $133 million, or 3 cents per diluted common share, compared with net earnings of $528 million, or 12 cents per diluted common share, for the fourth quarter of 2003 and a net loss of $259 million, or 6 cents per diluted share, the previous quarter. Net earnings included $37 million in earnings from discontinued operations, $81 million in special charges for restructuring costs and a benefit of $134 million related to customer financing recovery and settlements.
For the full year, Nortel recorded revenues of $9.83 billion, down about 4 percent from revenues of $10.19 billion during 2003. Net loss for the year was $51 million, or 1 cent per diluted common share, compared with a net gain of $434 million, or 10 cents per diluted common share, the year before.
The company said going forward it expects strong growth in voice over packet, third-generation wireless, metro optical, wireless local area network and converged network solutions, with demand for the company’s mature solutions expected to continue to decline. Nortel said it expects to report modest growth in revenues in the first quarter of this year.
The company also announced it has obtained a new waiver from Export Development Canada of certain defaults and related breaches under the company’s performance-related support facility. A prior waiver was set to expire April 30.
