Nortel Networks Corp. reported overdue first-quarter results, including revenues of $2.54 billion, an increase of 4 percent from revenues of $2.44 billion reported during the first quarter of last year.
Revenues were down slightly from fourth quarter revenues of $2.62 billion.
Net loss for the quarter was $49 million, or a loss of 1 cent per common diluted share, compared with net income of $59 million, or 1 cent per common diluted share, during the first quarter of last year. Net earnings were $133 million, or 3 cents per common diluted share, during the fourth quarter. The company said its first-quarter net loss included special charges related to restructuring activities of $21 million, and fourth-quarter net earnings included income from discontinued operations and special charges.
This is the first quarter the company’s results include the reporting sections of GSM and UMTS Networks, Carrier Packet Networks, Enterprise Networks and CDMA Networks.
Nortel reported revenues of $788 million for its GSM and UMTS Networks segment, up 20 percent from last year’s fourth quarter and up 18 percent from the fourth quarter. Carrier Packet Networks reported revenues of $664 million, down 3 percent both sequentially and year-over-year. Enterprise Networks reported revenues of $547 million, up 2 percent compared with the first quarter last year, but a decrease of 16 percent sequentially. CDMA Networks reported revenues of $535 million, down 6 percent from last year’s first quarter and down 13 percent sequentially.
The company spent $60 million during the quarter in financial restatement activities as well as investments in its finance organization. Nortel said it has $3.43 billion in cash at the end of the quarter.
With the filing, the company declared itself to be current and in compliance with financial reporting obligations, stock exchange listing requirements and public debt indenture obligations. Nortel said it has received a permanent waiver from Export Development Canada of all remaining defaults and breaches under its performance-based support facility.
“This announcement marks a turning point for Nortel,” said Bill Owens, vice chairman and chief executive officer of the company. “Our financial reporting is current. Gary Daichendt, the senior management team and I are focused on business execution and operational performance.”
In addition, Nortel’s board of directors declared a dividend on each of its outstanding cumulative redeemable class A preferred shares series 5 and the outstanding non-cumulative redeemable class A preferred shares series 7.
The dividend on each series is payable July 12 to shareholders of record June 30.
