Nortel Networks reported revenue of $2.38 billion for the first quarter of 2006 compared to $2.39 billion for the first quarter of 2005 and $3.0 billion for the fourth quarter of 2005. Nortel reported a net loss in the first quarter of 2006 of $167 million, or ($0.04) per common share on a diluted basis, compared to a net loss of $104 million, or ($0.02) per common share on a diluted basis, in the first quarter of 2005 and a net loss of $2,302 million, or ($0.53) per common share on a diluted basis, in the fourth quarter of 2005.
Mobility and Converged Core Networks revenues were $1.43 billion, a decrease of 4 percent compared with the year-ago quarter and a decrease of 23 percent sequentially. Enterprise Solutions and Packet Networks revenues were $871 million, a decrease of 1 percent compared with the year-ago quarter and a decrease of 15 percent sequentially. Revenues in both segments were impacted by the timing of certain contracts as both deferred revenues and backlog increased at quarter end by $140 million and $275 million, respectively.
“I am pleased to be current in our financial reporting,” said Mike Zafirovski, president and chief executive officer, Nortel. “While our results reflect a challenging first quarter, we continue to expect good revenue and operating margin momentum commencing in the second quarter, in line with our previously communicated full year plan. We remain focused on our business transformation initiatives, integrity renewal and short term growth opportunities, while concurrently building the long-term foundation for the new Nortel.”http://www.nortel.com
