Business
Nortel Reports Results for the Third Quarter 2006
Nortel Reports Results for the Third Quarter 2006.
About this update from Newterra Resources, Inc.
[{"type":"text","content":"\n\n\n\n\n>\n\nTORONTO, Nov. 7 /CNW/ - Nortel Networks(xx) Corporation (NYSE/TSX: NT)\ntoday announced its unaudited financial results for the third quarter of 2006\nprepared in accordance with accounting principles generally accepted in the\nUnited States. All dollar amounts included are in U.S. dollars.\n\nThird Quarter 2006 Results\n--------------------------\n\nRevenues were $2.96 billion for the third quarter of 2006 compared to\n$2.52 billion for the third quarter of 2005 and $2.74 billion for the second\nquarter of 2006. The Company reported a net loss in the third quarter of 2006\nof $99 million, or $0.02 per common share on a diluted basis, compared to a\nnet loss of $136 million, or $0.03 per common share on a diluted basis, in the\nthird quarter of 2005 and net earnings of $366 million, or $0.08 per common\nshare on a diluted basis, in the second quarter of 2006.\nNet loss in the third quarter of 2006 included a benefit of approximately\n$43 million related to the announced changes to the North American employee\nbenefit plans, a gain of $16 million on the sale of assets, a shareholder\nlitigation expense of $38 million reflecting a mark-to-market adjustment of\nthe share portion of the global class action settlement and special charges of\n$25 million for restructuring. The net loss in the third quarter of 2005\nincluded special charges of $39 million related to restructuring activities\nand a net charge of $20 million related to the re-filing of the Company's tax\nreturns as a result of the financial restatements. Net earnings in the second\nquarter of 2006 included a shareholder litigation recovery of $510 million\nreflecting a mark-to-market adjustment of the share portion of the global\nclass action settlement, special charges of $45 million for restructuring and\na loss of $10 million on the sale of assets.\n\"I am pleased with our overall revenue growth and, in particular, in our\nfocus areas of next generation mobility, enterprise and related services, and\nmetro optical. I am also pleased with the 270 basis points operating margin\nimprovement versus the third quarter of 2005. However, we should and will be\nmoving faster. Pricing pressures and the speed at which our revenues are\nshifting to next generation, early cycle products is increasing our challenge\nto drive profitability improvements,\" said Mike Za...