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Nortel reports healthy results for the second quarter of ’05

Nortel Networks Corp. today reported results for the second quarter of 2005 in U.S. dollars and surprised the stre...


August 8, 2005  


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Nortel Networks Corp. today reported results for the second quarter of 2005 in U.S. dollars and surprised the street with a 10% increase in revenues compared to the same time period last year.

“Our results demonstrate progress against our strategic plan,” said Bill Owens, vice chairman and CEO of Nortel. “I am pleased that our strategic objectives of cash, costs and revenue combined with a strong focus on our business operations and execution are delivering solid results.”

“We are playing to win, and Nortel’s commitment is to long term value, not just short term gain.

“This should be apparent as we continue to increase our investment in our enterprise business, evolve our product portfolio and build new businesses.”

Revenues were $2.86 billion for the second quarter of 2005 compared to $2.59 billion for the second quarter of 2004 and $2.54 billion for the first quarter of 2005.

The company reported net earnings in the second quarter of 2005 of $45 million, or $0.01 per common share on a diluted basis, compared to net earnings of $16 million, or $0.00 per common share on a diluted basis, in the second quarter of 2004 and a net loss of $49 million, or ($0.01) per common share on a diluted basis, in the first quarter of 2005.

Net earnings in the second quarter of 2005 included special charges of $90 million related to restructuring activities and $39 million of costs related to the sale of businesses and assets.

The second quarter 2005 results included adjustments related to prior periods which reduced net earnings by approximately $40 million ($16 million of which was included in the costs related to the sale of businesses and assets described above) and resulted in a $0.01 reduction in basic and diluted earnings per common share.