Nortel Networks Corp. in Toronto expects flat or slightly lower sales this year but with "much more attractive margins" as cost cuts gain traction, company executives have announced.
Nortel had "overall a very good and balanced" fourth quarter of 2006 and is reaping significant contract wins, CEO Mike Zafirovski said in a recent conference call with analysts and investors. But the company's stock declined four per cent in early trading after the call ended, losing $1.30 to C$30.53 on the TSX.
The call followed the release of delayed financial results for 2006 and restated numbers from previous years, showing a fourth-quarter net loss of US $80 million or 19 cents per share.
That compared with a year-earlier loss of US$2.29 billion, which included a $2.47-billion shareholder lawsuit settlement. Excluding one-time items, fourth-quarter earnings per share were four cents, disappointing the analyst consensus of 19 cents, according to Thomson Financial, although revenue was in line with expectations. The Toronto-based telecom equipment company, which keeps its accounts in American dollars, had a full-year profit of $28 million on revenue of $11.42 billion.
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