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Nortel stems the bleeding a bit in Q3
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It's pretty hard to find anything positive to say about the state of Nortel, yet the company managed to narrow its ongoing losses from $3.41 billion in Q3 2008 to $508 million in Q3 2009.
Still, the company reported that revenue declined from $1.6 billion in Q3 08 to $1.05 billion. Nortel also had to deal with $52 million for employee layoffs and other payments that usually would have been listed in the special charges column of its earnings statement.
Amidst all of the drama over the third-quarter declines, Nortel's carrier VoIP and applications solutions unit saw its revenues increase 14 percent to $208 million. The company attributed the rise in its VoIP revenue to closing up various projects it already had in the can.
At the same time, Nortel's flagship Metro Ethernet Networks division, which it is currently in the process of auctioning off, saw its revenues drop 26 percent to $295 million.
In its earnings release, Nortel said its "ongoing negative economic conditions and the uncertainty created by the Company's Creditor Protection Proceedings... resulted in a decrease in customers' spending levels."
For more:
- see the official company release here
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Comments
Posted by Anonymous | November 17, 2009 - 4:06pm
Sean,
You're missing the key point which is that during Q3 2008, they were not bankrupt and so had to pay their debtors.
When you've written off all your debts, of course the quarterly profits look better -- that Nortel is *still* operating at a loss says what a bad state the company's in. Even ignoring all the historical debt burden, pension commitments, etc., they're not making money.
The sad thing is that, the longer this drags on, the more value leeches from the organization. They should have simply auctioned everything off back in Q1.
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