Nortel posted its first-quarter results today, highlighted by a $103-million loss, which was driven by special charges of $80 million for restructuring. Putting aside the sales, profits and gross margins, I was curious about the various business units but there wasn’t a lot of detail in the press release. What stood out was a 6% decline in carrier networks sales to $1.01-billion. Strong growth in CDMA was overshadowed by declines in the GSM/UMTS, circuit and packet voice businesses. Meanwhile, enterprise revenue jumped 31% due to strong growth in voice and data businesses. One thing I would like to see from Nortel going forward is financial consistency in how they report their various business units. Probably more than any high-tech company in recent years, Nortel has changed its reporting structure so it’s impossible to do an apples-to-apples comparison of its results over the past four or five years.
Looking into the Q1 Numbers.
Nortel posted its first-quarter results today, highlighted by a $103-million loss, which was driven by special charges of $80 million for restructuring. Putting aside the sales, profits and gross margins, I was curious about the various business units but there wasn’t a lot of detail in the press release. What stood out was a 6% decline in carrier networks sales to $1.01-billion. Strong growth in CDMA was overshadowed by declines in the GSM/UMTS, circuit and packet voice businesses. Meanwhile, enterprise revenue jumped 31% due to strong growth in voice and data businesses. One thing I would like to see from Nortel going forward is financial consistency in how they report their various business units. Probably more than any high-tech company in recent years, Nortel has changed its reporting structure so it’s impossible to do an apples-to-apples comparison of its results over the past four or five years.