Monday, November 5, 2007

Nortel Reports Q3, Returns to Profitability

Nortel reported revenue of $2.70 billion for the third quarter of 2007 compared to $2.93 billion for the third quarter of 2006 and $2.56 billion for the second quarter of 2007. Net earnings were $27 million, or $0.05 per common share on a diluted basis. The gross margin was 43.0 percent, up 460 basis points year over year.

"Nortel achieved solid results this quarter in a challenging business environment. We delivered operating margin of 5 percent, the highest since 2004, driven by the highest gross margin in nine quarters," said Mike Zafirovski, Nortel President and CEO. "I am also encouraged by the top-line activity. Adjusted for the UMTS sale, orders in the third quarter were up 9 percent and up 5 percent year to date, which demonstrates Nortel's increasing relevance in the marketplace."


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