Nortel profit jumps on Internet, optical demand
BRAMPTON, (Reuters) - Nortel Networks Corp. , the world's No. 2 telecommunications equipment supplier, said Tuesday it bettered first-quarter profit expectations of 18 cents a share by 5 cents, reflecting red-hot demand for its optical and Internet equipment.
Brampton, Ontario-based Nortel recorded net earnings from operations, excluding one-time items, of $347 million, or 23 cents a share, on revenues of $6.32 billion in the quarter. In the year-earlier period, the company posted a profit of $193 million, or 14 cents a share, on revenues of $4.29 billion.
The average estimate of 25 brokers polled by First Call/Thomson Financial was for a profit of 18 cents a share. IBES International Inc. carried an average forecast of 19 cents from 25 brokers.
Including acquisition-related costs and one-time gains and charges, Nortel recorded a net loss of $730 million, or 52 cents a share.
Shares in Nortel, which fell during recent market punishment meted out to technology issues, surged nearly 9 percent on the Toronto Stock Exchange Tuesday to close at C$156.40 before the results were released. In New York, the stock added 9 to end trade at 107-1/2.
``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. |
