Nortel Networks Corp. Thursday reported preliminary third-quarter revenue of $2.27 billion and announced that it is building momentum in its enterprise division.
The Toronto-based manufacturer also said that it will restate its financial results for 2000, 2001, 2002 and the first and second quarters of this year after reviewing assets and liabilities. Accounting mistakes were made because of the volatility of the last couple years, according to the company.
Frank Dunn, Nortels president and chief executive officer, said that the preliminary earnings show progress in a difficult environment.
"I am particularly pleased with the continued momentum in our wireless networking solutions, the market leadership of our converged networking and voice over packet solutions, and the building momentum in our enterprise segment," Dunn said in a statement. Enterprise revenues came to $579 million.
In the wireless arena, Nortel is making inroads in the 3G market, having recently forged agreements with Orange SA, a unit of France Telecom, and with AT&T Wireless. Wireless revenues came to $1.01 billion.
Dunn said that he expects fourth quarter revenue to grow over the third quarter, and that the company will show a profit this year.
Nortel has undergone a dramatic restructuring over the past two and half years, with employment dropping to 35,500 from 94,500 in January 2001. During the same time period, the company consolidated its facilities to 250 sites from more than 700. Moving forward, company officials anticipate relative stability.
"The challenges that faced Nortel Networks and our industry over the past few years were unprecedented," Dunn said. "It is clear now that in such a volatile environment, errors were made."
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