Nortel reported Q1 2007 revenues of $2.48 billion, up 4% compared to $2.39 billion for the first quarter of 2006 and $3.32 billion for the fourth quarter of 2006. Excluding the impact of its UMTS Access divestiture, revenues increased by 12 percent year over year. There was a net loss of $103 million, or $0.23 per common share on a diluted basis. The gross margin for the quarter was 40.4 percent.
Some highlights:
- Carrier Networks (CN) revenues in Q1 were $1.01 billion, a decrease of 6 percent compared with the year-ago quarter and a decrease of 32 percent sequentially. In the first quarter, the strong growth in CDMA was more than offset by declines in the GSM/UMTS and in the circuit and packet voice businesses. Excluding the impact of the UMTS Access divestiture, CN revenues increased by 5 percent in the first quarter of 2007 compared with the year-ago quarter.
- Enterprise Solutions (ES) revenues in the first quarter of 2007 were $597 million, an increase of 31 percent compared with the year-ago quarter and a decrease of 24 percent sequentially. The year over year growth was driven by strong growth in both voice and data businesses.
- Global Services (GS) revenues in the first quarter of 2007 were $448 million, a decrease of 11 percent compared with the year-ago quarter, and a decrease of 17 percent sequentially. Excluding the impact of the UMTS Access divestiture, GS revenues increased by 1 percent in the first quarter of 2007 compared with the year-ago quarter.
- Metro Ethernet Networks (MEN) revenues in the first quarter of 2007 were $373 million, an increase of 27 percent compared with the year-ago quarter and a decrease of 17 percent sequentially. The year over year increase in revenues was primarily due to the completion of a large optical and a large data contract and continued traction in the Multiple System Operator market.
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