Nortel clips:
An Aware Tech. user.
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``Nortel Networks outstanding growth in the quarter reflected the continued market leadership for our optical Internet, wireless Internet and high-speed Internet access solutions,'' said Chief Executive John Roth in a statement.
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Nortel said that strong revenue growth in several of its key business areas helped to boost operating profits for the first quarter. Revenue for the company's high-speed fiber-optic Internet business grew 150%, while revenue in wireless Internet applications and equipment grew 45%.
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Broadband equipment revenue picked up 50 percent.
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The results, which cruised past Wall Street forecasts, echoed some powerful numbers posted in the past day by Corning, the leading manufacturer of fiber-optic cable, and JDS Uniphase, a rapidly growing producer of fiber-optic components.
Together, the reports pointed to a continuation of the frenzied spending on communications networks for electronic commerce -- regardless of the stock market's sudden cynicism about the Internet revolution and profitless companies.
``Wall Street is going through quite a reassessment of values,'' said John Roth, president and chief executive of Nortel. But, he added, ``There's a huge change in society taking place with regard to the use of telecommunications. People are starting to realize just how efficient they can make their organizations by using the Internet.
``That's all really coming, whether or not some of the dot-com companies succeed.''
Notably, Nortel said in Tuesday's report that its prospects for the year have grown even brighter. The company now sees its overall market growing about 20 percent in 2000 instead of about 15 percent. Likewise, Nortel now expects full-year revenue growth of 30 to 35 percent rather than about 20 percent. |
