Tuesday, June 10, 2008

Nortel Confirms Financial Guidance

Nortel reconfirmed its full year 2008 outlook. The company continues to expect:

  • Revenue to grow in the low single digits compared to 2007

  • Gross Margin to be about the business model target of 43 percent of revenue

  • Operating Margin as a percentage of revenue to increase by about 300 basis points compared to 2007

In addition, the company held a full day conference with the investment community. Some notes from the presentations (which are posted online):

  • In Unified Communications, Nortel claims 800+ customers

  • 13 wins in 40G

  • there have been 40+ wins in Carrier Ethernet

  • Nortel has made Verizon's short list for LTE

  • Nortel expects the LTE market to ramp to $400 million 2010. By 2011, the market should increase to $1.6 billion.

  • Nortel expects the WiMAX infrastructure market to reach $1.0 billion in 2008 and to grow to $3.2 billion in 2011.

See also