Nortel Networks' Q2 results beat expectations

Nortel Networks on Wednesday reported earnings of $US368 million, or 55 cents per share, for the second fiscal quarter, which blew past analysts' average estimate of 50 cents a share.

Twenty-three analysts polled by First Call predicted earnings per share of between 48 cents and 53 cents, so the actual results from the networking company also exceeded the highest estimate.

However, when costs related to acquisitions and one-time gains and charges are included, Nortel recorded a net loss of 21 cents per share or $145 million. Those charges mostly were related to the acquisition of Bay Networks.

Nortel had revenue of $5.41 billion for the quarter ending June 30, compared to $4.16 billion a year ago, for an increase of 30 per cent, the company said. US revenue jumped 28 per cent for the quarter and revenue in Canada rose 40 per cent during that period. Outside of North America, Nortel's revenue rose 32 per cent, with what the company described as "significant" increases in Europe and Asia Pacific, which were somewhat offset by decreases in Central America and Latin America.

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