Nortel’s turns out to be the second vendor to suffer loss in the second quarter with the week demand for CDMA equipment. Nortel’s stock drops around 15%. Net Loss recorded $113 million compared with a $37 million dearth in second quarter last year. “Nortel faces a challenging business environment with increasing risk due to general macro-economic weakness, continuing competitive pressures and potential of further reduced capex spending by key North American CDMA customers,” the company said.
Revenues fell by 5% year on year to $2.62 billion. Moreover, sales grows in all divisions except the carrier group, the largest segment by revenue, which saw a 2% decline to €667 million (US$1.04 billion). The services group saw a 9% rise to (US$536 million). Despite the losses, CEO Mike Zafirovski is quite hopeful and said Nortel was on track to meet guidance for the year.
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Nortel stock drops 15% in Q2 (US)
- August 4th, 2008
- 12:42 pm
