With the Nortel empire, one of the brights spots – at least from a revenue perspective – this year has been Asia where sales have jumped nearly 50% over the first three quarter to $1.87-billion. This accounted for 25% of total sales.
But according to Nortel Asia-Pacific president Francois Lancon, the market is getting more challenging as wireless carriers reduce spending. “What we are seeing is they are scrutinising purchases. Purchasing cycles are taking longer,” he told Reuters.
While demand from India and Japan are holding up, Lancon said he’s concerned about sales in China, particularly the enterprise market. That said, he said Nortel is aiming to maintain Asian sales at 22% to 25% of total sales by year-end. He added that sales in India have grown 40% to 50% from last year.
Does *seem* like positive news. However, it would be most interesting to compare NT's revenue growth in Asia with its competitor's revenue growth in Asia…This would give a proper baseline to this number.
less
I'm fairly sure Asia can keep Nortel busy for a while, but again, once they're (literally) up to hyperspeed, theres nothing left but to do there but maintenance on dinged-up legacy equipment.
I still don't think there will be anything technically advanced coming back out of Asia in the near future that will boost stocks, much less prevent the West's networks scorching the ozone, and with it their economy, to a whimpering crisp.
Gayle
Oh my God…. such a racial bias
less
Don't forget to bring up “global warming” and something about “culture”, however obtuse, before invoking Godwin's Law. You're smart enough to tell a person's race and heritage just by reading their posts. God is yours, alright.
Back on topic, investors are interested in potential gains and dividends to be had. Wheres the beef?
puddintane
I can't resist the temptation. Lemme play noble poet global villager here:
The last of the U.S.'s Internet search giants has opted to become a firewall to freedom. And that deserves a boycott. Google Inc…. has put profit ahead of social responsibility by cooperating with one of the world's most repressive governments. Google today launched a search engine in China that the company proclaimed would help bring more and broader categories of information to the desktops of China's 100 million Internet users.”
So logically Google, not China, is deemed “evil”, cuz:
“The China version of Google not only filters out many so-called controversial topics, but for many topics it returns only official Chinese government propaganda. This is a brutal assault on the truth, and Google is complicit in this crime.”
Nortel is doing a Google. For profit. Boycott Nortel until they demand China in turn keep their network free in *every* sense of the word.
Lessee – their flukish, undeserved 50% gain in late 2007 aside, Google has slumped 40% since the masses' call to boycott. Go Dalai.
protosphere
I question margins /earnings in Asia where they have to compete against lower cost rivals in China's own backyard.
Earnings are more pressing than revenues they pay dearly for like BSNL or PEC. The silver lining of taming costs is an illusion when selling at a loss to look big and fall faster. Their forecasting further dampens any credibility in endless areas.
Most of their business is in North America, Almost all of their earnings were in CDMA (80 to 90% of their EBT!) Now CDMA “cash cow” “going out to pasture” in sharp decline and in favor of GSM. Perhaps now losing their largest earnings area after a decade of decline is their most pressing issue and well above the upcoming telecom cutbacks or their increased pension burdens .
Back to cutting assets and staff yet again, things are even worse yet again. They are unable to sell yet another key asset (MENs) to pay for even more of these layoffs /transfers to live yet another day or prolong the inevitable yet again.
A big company ill affording to lose big money through its big costs and ill affording layoffs with precious declining cash on the horizon to the point of foreseeable insolvency is what I see happening, as do others now. =)
Any sales anywhere may take a back seat to this more pressing issue of earnings or whether they will even be around to sell or support anything anywhere.
For a stock that traditionally trades at a premium, it trades at under 4 cents presplit or less than 1/10th of when they last neared folding for endless reasons.
Clint
Nortel and all other companies doing tech business in China NOT FROM CHINA should be worried. The Chinese look out for themselves. Huaweii, ZTE etc have all carved a niche by planting or having chinese born engineers gain valuable experience and secrets/patent knowledge from places like NT, Alcatel, Cisco Etc. They load up after considerable experience and then bolt for their motherland tech company at the first opportunity. Can you blame them. They want to be with their own flying under one flag. A nationalist happy family. After what the japanese did to them you can kind of understand it. You don't have to like it or support it but you can understand it. So I'll tell you this. The end goal of the chinese worker and government is to raise their own phoenix. Sales are booming in Asia, for Chinese companies. This is the reality. NT and the rest can have the table scraps. Revenge for planting nitro when laying the railroad tracks in North America? It's about time canuckistan, america, obama and harper took some lessons from the Chinese and took care of their own first.
less
Its conspiracy time again.
Our western mainstream media wasted no time turning a minor cultural misunderstanding between Pakistanis and Indians in India's city of Mumbai into the by now rather rote “Muslim terrorist!” hysteria, mainly to sell more copy.
But – is it merely coincidence, truly happenstance that Nortel has deepened cultural and business ties with India whilst Cisco has chosen the admittedly a tad more war-like, pro-USA Pakistan?
“Pakistan is a key market for us and we have invested heavily here in terms of people and by opening up a new office in the country. These important changes are part of Cisco's strategy underpinning the creation of the new Emerging Markets Theatre,” said Mark De Simone, Vice President for Middle East and Africa.
The “Pakistan Defence Forum” found it worthy mentioning that:
“Dr. Aamir Matin has been appointed the General Manager of Cisco Systems Pakistan Cisco Pakistan as the company expands operation by opening an office in Islamabad, according to press statement issued on Wednesday.”
Early signs of a possible ban by the government on the latest Guns N' Roses album, “Chinese democracy” was available as a newspaper published by the Communist Party of China condemned it immediately after its release on Sunday. The newspaper, Global Times, said that the music album “turns its spear point on China”. It quoted Internet postings to say that it was part of a larger plot by Western nations to “grasp and control the world using democracy as a pawn.”
So Axl – or is it AZl – lies about China to sell albums. But Axl isn't beyond redemption. He does want free soda for the masses:
Dr Pepper rolled out a marketing campaign in March promising a “free soda” to “everyone in America”. So many GN'R fans — and, no doubt, fans of free stuff in general — tried to get the coupon that they choked the site and it crashed. Disgruntled and downright ticked off, some blamed the band.
The huddled masses are never wrong: China and India “good”, Axl “bad”.
Early signs of a possible ban by the government on the latest Guns N' Roses album, “Chinese democracy” was available as a newspaper published by the Communist Party of China condemned it immediately after its release on Sunday. The newspaper, Global Times, said that the music album “turns its spear point on China”. It quoted Internet postings to say that it was part of a larger plot by Western nations to “grasp and control the world using democracy as a pawn.”
So Axl – or is it AZl – lies about China to sell albums. But Axl isn't beyond redemption. He does want free soda for the masses:
Dr Pepper rolled out a marketing campaign in March promising a “free soda” to “everyone in America”. So many GN'R fans — and, no doubt, fans of free stuff in general — tried to get the coupon that they choked the site and it crashed. Disgruntled and downright ticked off, some blamed the band.
The huddled masses are never wrong: China and India “good”, Axl “bad”.
High Hopes for Asia
With the Nortel empire, one of the brights spots – at least from a revenue perspective – this year has been Asia where sales have jumped nearly 50% over the first three quarter to $1.87-billion. This accounted for 25% of total sales.
But according to Nortel Asia-Pacific president Francois Lancon, the market is getting more challenging as wireless carriers reduce spending. “What we are seeing is they are scrutinising purchases. Purchasing cycles are taking longer,” he told Reuters.
While demand from India and Japan are holding up, Lancon said he’s concerned about sales in China, particularly the enterprise market. That said, he said Nortel is aiming to maintain Asian sales at 22% to 25% of total sales by year-end. He added that sales in India have grown 40% to 50% from last year.
Technorati Tags: Asia, India, Nortel