Tough Q1 Expected for Nortel

By Mark Evans | Published: April 25, 2008

Nortel’s first-quarter results don’t come out until next Friday but there’s already noise that they won’t be pretty.

MarketWatch has a short pre-earnings story that analysts believe it will be a tough quarter due to “soft demand”. Nortel is expected to lose six cents a share (excluding extraordinary items) on revenue of $2.5-billion. The compares with an adjusted loss of four cents on revenue of $2.48-billion in Q1 2007.

Here’s an overview of what analysts are expecting:

Picture 1-76
Source: Yahoo Finance

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  • one0f34kleft

    i can see it now. no travel, no coffee, no pencils, no phone calls, must get vp approval, but mike z must get his bonus..
    this would be a good time to start cutting from the top.. but the BOD has been nuetered so it will be business as usuall. this is like being in a roller coaster in the front car starting to go down the first big drop and seiing a gap in the track.. you know it won' be pretty.

  • survivor

    Good job Mike, good job. I am impressed.

  • Notelhand

    I am sure Mike Z will have a highly developed action plan for fixing the problem. I think he will start of with how much progress was made, show us some positive numbers for Q over Q results then he will drop a big bomb. Quickly glance over that and move to the “NEW” action plan. It will start out by cutting 2000 or 3000 jobs, laying off the janitorial service, and issuing brooms and dust pans to employees. He will then explain that it is there job to clean around their work area every night. And for the cleanest department pizza will be brought in once a month to celebrate the great work.

    It is going to be hard to beet the Wimax group, I think Mike Z has that group of people down to two, but there may one or two on loan.

  • Current Nortel

    Maybe it's time to outsource senior management?

  • http://ext.com ex-nt

    I was cleaning out the airplane again and came across updated notes for the call for Mike. He is going to announce a combined 6-sigma-go-green-simplify program where we lay off high cost employees and put them to work growing corn on the Carling lawn. Zafaristic!

  • Onlooker

    Now that the US is staring $150/barrel oil in the face, expect to see all kinds of cuts in forecasts for Q2 and Q3.

  • many

    You forgot management taking turns at the guard desk to save on security.

  • donbeyer

    It seems to me that high fuel costs makes Nortel's case for a much welcomed Telepresence solution(s)…

  • Another Nortel Watcher

    donbeyer – the problem is that Nortel has had a Telepresence solution of sorts for 5+ years and has done almost no market development with it so now Cisco has arrived with a solution and is gobbling up the market segment. How sad for Nortel.

  • Plastered

    There sure are some reject managers in that place..not all..but the real bad ones
    hang on..the ones over 20 years..with few exceptions.

  • YoYo

    Current Nortel,

    I like that. How about we just outsource all of Nortel including this blog to our Chinese and Indian friends. Better margins, wider global coverage and controlled information dissemination. Oh well, one out three ain’t so bad.

  • Plastered

    If the employees graded the managers alot of those turds would be out.

  • no there any more

    Hasn't been a money making carrier deal of any significance since I think 2003 (Sprint). The only deals in recent memory have been BSNL GSM and the one that just completed lost 250M+….

  • Apple

    The only deals in recent memory have been BSNL GSM and the one that just completed lost 250M+….
    ==============
    re
    Nortel has reported $366 total loss on bsnl deal so far and “new ” $100 mill extension deal is in progress in 2008 2.5 mill lines with average $40 a line when ERIC gets $100 a line.
    /links available/
    There was no bidding on the extension as I know it.
    Question is why NT is “dealing” with bsnl in 2008?
    Last big deal, wireline deal with Verizon, Jan 05 2004 was never delivered. /LOI/

  • exnt2

    growing corn is too expensive. so easier to lay off low cost employees 10:1 ratio and get them to run or bike around campus to generate electric power. Z is also investing in little pedal machines to drive the computers. so as soon as they stop producing power he will know which employees are not productive. would be easy to tell as on most days it will be lights out in most of the building windows.

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  • puddintane

    I actually felt most appreciated back during the boom years when we could offer full range of labs services – from document engineering, installation, commissioning, to troubleshooting over just rote data entry.

    Rumor has it that these days every turn of a screw is somehow controlled, approved, regulated, weighed, justified, graphed, quantified, verified, and above all, timed by every tier of management. Lean Six Si – git 'er done-ified.

  • puddintane

    But, again, the absolutely staggering waste perpetrated in yon days by all was just as wrong.

  • http://www.extremesteam.biz/carpet-cleaning Miami Carpet Cleaning

    I think the employee and the manager have something to do with this.. Not all of course… they must scan it out..

  • http://www.extremesteam.biz/carpet-cleaning Miami Carpet Cleaning

    I think the employee and the manager have something to do with this.. Not all of course… they must scan it out..

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