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May 4, 2008

On Friday, Nortel Networks reported greater than expected first quarter losses.

However, the company said it still expects to meet its full-year projections nevertheless.

The telecommunications equipment manufacturer posted a loss of $138 million, or 28 cents a share, compared with a loss of $103 million, or 23 cents a share, for the same quarter last year. Losses for the quarter were up from its fourth quarter, when it posted a loss of $844 million, or $1.70 a share.

The company said losses this quarter were due in part to a series of 1-time items, including $88 million for restructuring, $12 million in a patent lawsuit settlement and a loss of $19 million due to changes in foreign exchange rates.

Excluding those charges, Nortel said it only lost 5 cents per share, less than average expectations of 14 cents.

Overall sales were $2.76 billion, up 11 percent from 2007's comparable reporting period.

Despite its quarterly losses, Nortel said it still expects to achieve revenue growth in the low single digits for all of 2008.

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Source: Nortel Networks.