Nortel to work through glut of components by
mid-2001
Wed Feb 14 14:02:00 EST 2001
SAN FRANCISCO, Feb 14 (Reuters) - No. 1 telecommunications
infrastructure vendor Nortel Networks Corp. said on
Wednesday that it expects to use up its oversupply of
fiber-optic components used in the equipment it manufactures by
the middle of the year.
Nortel signed a contract in late 1999 to "lock in supply of
strategic components", according to Vivian Hudson,
vice-president for Nortel, at a technology investors conference
held by Robertson Stephens. "We expect to work that off by
Q2."
Nortel is the largest purchaser of fiber-optic components
in the world, buying as much as half of all components
produced, according to the company.
JDS Uniphase Corp. , the largest supplier of
fiber-optic components in the world, on Tuesday warned that
earnings and revenues would be lower than previous
expectations, due to a glut of components at customers such as
Nortel.
Nortel also expects sales of metro area networking
equipment to grow faster than sales of long-haul transmission
equipment this year, Hudson said, though she declined to give
out a breakdown.
Rtr 14:02 02-14-01
Copyright 2001, Reuters News Service |
