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Feb. 27, 2008

Late yesterday, Nortel Networks said that, for the quarter that ended Dec. 31, it has posted losses of $861 million, or $1.73 a share.

The loss is a lot wider than the $82 million loss or 19 cents a share for the corresponding quarter in 2007.

Nortel said the loss is due partly to an important, one-time charge for the companie's plan to cut 2,100 jobs and relocate another 1,000 people.

Although the one-time charge hurts the company’s quarterly reporting, Nortel said the cutbacks should result in annual gross savings of about $306 million overall.

Additionally, Nortel said the quarter included another one-time non-cash tax charge of about $1.12 billion related to changes in the company's Canadian tax profile.

Overall, Nortel reported a 4 percent decline in revenue to $3.27 billion, from $3.39 billion for the same period in 2007.

Nortel also predicted revenue growth this year, although in the low single digits, it said.

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Source: Nortel Networks.

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