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Aug. 3, 2008

Nortel Networks reported a much larger then expected second quarter loss, even though it claimed it is on track to meet its sales projections for this year, despite a very challenging business environment.

Nortel reported a net loss of $113 million, compared to a net loss of $37 million for the corresponding 2007 period.

These results include restructuring charges of $67 million. Revenue rose to $2.62 billion from $2.56 billion.

In June, Nortel changed its story claiming that it was shifting its R&D efforts from WiMAX to Long-Term Evolution (LTE).

This move came after Clearwire and Sprint opted for other equipment manufacturers for their WiMAX network.

CEO Mike Zafirovski said in the second half of 2007 that Nortel would concentrate on execution and on delivering accelerated growth in key segments in order to hit financial targets for the year.

On July 29, Nortel was awarded the contract to offer network infrastructure for the London 2012 Olympic and Paralympic Games.

Nortel will provide an end-to-end information infrastructure for the Games.

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Source: Nortel Networks.