NT to have net loss of 19.2 billion...do you really
think that fund managers are gonna load up on this
sector (the HEART of tech) with #'s like these
coming out every day? NO. here is more -->
Nortel now expects to post a second-quarter loss from continuing operations of $1.5 billion, or 48 cents a share, for the second quarter and anticipates revenue from continuing operations of $4.5 billion. Analysts had expected the telecom-equipment group to lose six cents a share and had forecast revenue of $6.22 billion for the period, according to Thomson Financial/First Call.
Huge Loss on Charges
Including discontinued operations and the effect of a restructuring plan, Nortel expects to report a net loss of $19.2 billion for the quarter.
Nortel will take a restructuring charge of $830 million from the elimination of about 20,000 positions, which the company announced in April, and the closure of some facilities related to the job cuts.
In addition, Nortel will discontinue its access-solutions operations, and this move will result in a charge of $2.6 billion for the second quarter. About $750 million of this charge relates to a write-down of goodwill associated with acquisitions. The access-solutions operations, which include narrowband and broadband access, accounted for about 7.7% and 6.9% of Nortel's revenue for the 2000 full year and the first quarter of 2001, respectively.
The company also expects a second-quarter charge of $12.3 billion to reflect the write-down of intangible assets, which are primarily related to the goodwill associated with the acquisitions of Alteon WebSystems, Xros and Qtera.
Nortel also plans a charge of $950 million for increased provisions. The charge includes about $650 million in pretax manufacturing-related costs for excess and obsolete inventory and manufacturing inefficiencies. It also includes about $300 million in costs for bad debt and the write-down of certain investments. |
