Nortel Narrows Losses, Revenue Plummets

The Brampton, Ontario-based company reported a net loss Thursday of $1.8 billion, or 42 cents a share, in its third quarter compared with $3.47 billion, or $1.08 a share, from the same time last year.

Excluding various one-time expenditures and losses, the company said its losses came to $420 million, or 10 cents a share, edging out expectations of analysts surveyed by Thomson First Call, who predicted a loss of 11 cents. The latest figures are an improvement from a loss of $2.2 billion, or 68 cents a share, from a year ago.

Nortel released its earnings report after the close of markets. Shares of Nortel finished the regular session up 6 cents, or 11.3 percent, to 59 cents. In after-hours trading, they gained another 9 cents.

Revenues for the quarter ended Sept. 30 fell 36 percent to $2.36 billion. While in line with forecasts, the company had to slash targets two times in as many months to meet this level as its customers remain wracked with heavy debt and an oversupply of Nortel products used in phone, wireless and Internet networks hangs heavy over the market.

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In the first nine months of the year the company said it cut its losses to $3.34 billion, or 91 cents per share, from $4 billion, or $1.26 per share, in the same period last year. Revenue dropped 43 percent to $8 billion from $14.1 billion.

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