Monday November 20, 7:31 pm Eastern Time
Nortel reaffirms financial guidance for 2000, 2001
(UPDATE: adds details in paragraphs 6-10)
NEW YORK, Nov 20 (Reuters) - Communications equipment maker Nortel Networks Corp., whose stock has been hit by fears of
lost contracts and layoffs, on Monday reaffirmed its financial guidance through 2001, saying it continues to see strong growth in sales
of optical, wireless and Internet equipment.
Nortel (NYSE:NT - news) (Toronto:NT.TO - news), which will host an investor conference in Boston on Tuesday, said it expects its
2000 revenues and earnings from operations to show growth in the low 40-percent range. It expects its optical Internet revenues to
grow more than 125 percent in 2000 to more than $10 billion.
For the fourth quarter of 2000, Nortel expects its revenues to be $8.5 billion to $8.8 billion, with earnings from operations of 26 cents a share. That earnings outlook
is consistent with its previous guidance and is in line with Wall Street expectations, according to research firm First Call/Thomson Financial.
For the full year 2001, Nortel expects to outpace the overall market growth of 20 percent. It expects its revenues and earnings per share from operations to grow by
30 percent to 35 percent.
In the first quarter of 2001, it expects revenues to be $8.1 billion to $8.3 billion, and earnings from operations to be 16 cents share. The earnings guidance matches
Wall Street forecasts, First Call said.
The financial guidance was released after the stock market closed. Nortel's stock closed Monday at $35-1/4, up $1-3/16, on the New York Stock Exchange. The stock
has lost about 30 percent this year, weakness in the past month erasing modest gains made earlier this year.
Investors slammed shares of Nortel after it posted weak fiber-optic equipment sales in the third quarter. Its shares were further pressured last week amid rumors that
Nortel lost sales at Qwest Communications International Inc. (NYSE:Q - news) to equipment rival Ciena Corp. (NasdaqNM:CIEN - news), analysts said.
Nortel spokesman David Chamberlin on Friday denied that rumor and said Nortel has ``not lost any significant contracts to Ciena or anyone else.''
Nortel said on Monday it continues to see ``strong demand'' for its long-distance optical Internet products, while it also moves into new markets such as making
equipment for high-speed optical Internet networks within cities and wireless Internet networks.
The Brampton, Ontario-based company said its growth also will be fueled by its ongoing efforts to focus on fast-growing markets and to streamline operations. |
