Nortel releases Q3 revenue below its earlier forecast

Nortel Networks lost US$259 million in the third quarter of 2004, on revenue down 5 percent from the same period last year.

Unaudited results for the period ending Sept. 30, 2004, saw revenue of US$2.2 billion and a loss of $0.06 per share. This compares with year earlier revenue of $2.3 billion and a profit of $131 million, or $0.03 per share.

Third quarter 2004 revenue came in a bit below Nortel's earlier forecast of $2.3 billion. Revenue was down across three of Nortel's four business units -- Wireline, Wireless and Optical. Enterprise, meanwhile, saw an 8 percent increase from a year ago.

Wireless, Nortel's biggest unit, saw revenue decrease 5 percent to $1.05 billion in the quarter. Wireline was down 10 percent and Optical was down 40 percent, to $155 million, from the third quarter of 2003.

Nortel has been restating and auditing results as far back as 2001 to correct an accounting scheme that resulted in the dismissal of 10 executives, including CEO Frank Dunn last April.

Nortel has already reported audited results for the first two quarters of 2004. For the nine-month period, Nortel lost $184 million, or $0.04 a share, on revenue of $7.2 billion.

The company is expected to release fourth quarter results in April. Earlier, Nortel forecast revenue of $2.8 billion to $2.9 billion for the fourth quarter and $10.1 billion to $10.2 billion for the full year 2004.

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