Nortel Networks Reports Record Third Quarter Results
TUESDAY, OCTOBER 24, 2000 4:03:00 PM EST
BRAMPTON, ON, Oct 24, 2000 /PRNewswire via COMTEX/ -- Nortel Networks(x) Corporation(a) (NYSE/TSE: NT) today reported results for the third quarter and first nine months of 2000 prepared in accordance with U.S. generally accepted accounting principles.
Revenues increased 42 percent to US$7.31 billion for the third quarter of 2000 from US$5.15 billion in the same period in 1999. Net earnings from operations applicable to common shares(b) for the quarter were US$574 million, or US $0.18 per share on a diluted basis, compared to US$314 million, or US$0.11 per share on a diluted basis, for the same period in 1999, an increase in earnings per share from operations of 64 percent. Including Acquisition Related Costs (b), stock option compensation from acquisitions and divestitures and one-time gains, Nortel Networks recorded a net loss applicable to common shares in the third quarter of 2000 of US$586 million or US$0.20 per share.
"We are extremely pleased with the strong growth in the quarter which reflected our continued strength and leadership in the key growth areas of Optical Internet, Wireless Internet, Local Internet and eBusiness Solutions," said John Roth, president and chief executive officer, Nortel Networks. "Carriers and service providers around the world continued the drive to provide a broad range of wireless, internet and eBusiness services to their customers. Leading the growth again this quarter, revenues for our Optical Internet solutions grew nearly 90% in the quarter compared to the same period last year. We are especially pleased with the excellent traction in Wireless Internet solutions with approximately US$1.2 billion in new contract announcements since the end of June and revenue growth in excess of 50% in the quarter over third quarter of 1999. Local Internet and eBusiness solutions also continued to do well with quarterly revenue growth in excess of 35% and 200% respectively over the same period last year."
"We also made good progress in the quarter with our Optical capacity investments. Optical systems capacity continued to come on stream as planned and has restored customer lead times to more traditional levels. We made significant progress in ramping up our optical components business, both to leverage the market opportunity and to ensure that a strong second source will be available to meet our needs."
"Based on the momentum we have experienced during the first nine months and the strong order backlog, we continue to expect that our percentage revenue growth in 2000 over 1999 will be in the low 40's. Consistent with our overall expectations for the year is an expectation that Optical Internet solutions revenues will exceed US$10 billion. We now expect however, that our percentage growth in EPS from operations in 2000 compared with 1999 will also be in the low 40's, up from our previously stated expectation which was in the high 30's."
"Looking forward to 2001, we expect the overall market to grow in excess of 20 percent. Given our strong market position and industry leading networking solutions, we expect to continue to grow significantly faster than the market, with anticipated growth in revenues and EPS from operations in the 30 to 35 percent range," said John Roth.... |
