Nortel earnings:
(COMTEX) NORTEL (NORTHERN TELECOM) REPORTS THIRD QUARTER RESULTS
NORTEL (NORTHERN TELECOM) REPORTS THIRD QUARTER RESULTS
TORONTO, Oct. 21 /PRNewswire/ - Northern Telecom Limited today reported
results for the third quarter and the first nine months of 1997.
Revenues were US$3.50 billion for the third quarter of 1997, up 15
percent from US$3.05 billion reported for the same period in 1996. Net
earnings applicable to common shares for the quarter was US$153
million, or US$0.59 per share, compared to US$112 million, or US$0.43
per share, in the third quarter of 1996; representing an earnings per
share increase of 37 percent over the same period in 1996. Order input
of US$3.45 billion for the quarter, compared with US$3.09 billion for
the same period last year, reflects year over year gains in all lines
of business.
For the first nine months of 1997, Nortel recorded revenues of US$10.64
billion, an increase of 23 percent over US$8.66 billion for the first
nine months of 1996. Net earnings applicable to common shares for the
first nine months was US$426 million, or US$1.63 per share, compared
with US $302 million, or US $1.17 per share in the same period of 1996. Included in the results for the first nine months was a one time
pre-tax gain of US$102 million, or US$0.35 per share after tax, and one
time pre-tax special charges of US$95 million, or $US$0.32 per share
after tax, each of which were included in the second quarter results.
Order input for the first nine months of 1997 was US$10.71 billion,
compared with US$8.81 billion in 1996.
Commenting on the quarter, John A. Roth, president and chief executive
officer, said: ''Our financial performance in the third quarter was in
line with our expectations, and reflected continuing growth across all
lines of business and all geographic areas. We are pleased with recent
contract announcements, specifically contracts in Europe and Brazil,
and our announcements of a number of new products that will enhance
internet access solutions to address the different needs of a variety
of our customers.''
Geographic revenues for the third quarter of 1997 increased
significantly in United States, Europe and Canada over the same period
last year. Caribbean and Latin America (CALA) increased substantially
year over year. Asia Pacific revenues for the third quarter increased
over the same period last year.
Revenues by product line for the third quarter increased substantially
for Wireless Networks, and Broadband Networks. The growth momentum in
Wireless Networks revenues continued with substantial year over year
gains experienced in Europe, CALA, Asia Pacific and Canada, with solid
gains also experienced in the United States. Broadband Networks
revenues increased substantially, driven by considerable increases in
United States, partially offset by declines in CALA. Public Carrier
Networks revenues increased compared to the same period last year with
solid gains in the United States, Canada, and Europe partially offset
by a substantial decline in Asia Pacific. Enterprise Networks revenues
decreased primarily due to the impact of the disposition of the TTS
Meridian Systems Inc. and Nortel Communications Systems Inc.
distribution businesses, in the second quarter of 1997.
On a comparative year over year basis, primarily adjusting for the
impact of the disposition of the distribution businesses, Enterprise
Networks revenues increased in the third quarter of 1997. Overall
Nortel revenues, reflecting the same adjustments, increased by 19
percent for the third quarter and 26 percent for the first nine months
of 1997 over the same periods last year.
Selling, general and administrative expenses were US$659 million, or
18.8 percent of revenue, in the quarter, compared with US$526 million,
or 17.2 percent, in the third quarter of 1996. For the first nine
months of 1997, SG&A expenses increased to US$1.92 billion from US$1.51
billion for the same period of 1996, primarily reflecting planned
increased investments to support our global growth, and ongoing
investments in computer systems infrastructure.
Research and development expenses were US$528 million, or 15.1 percent
of revenues, for the third quarter of 1997, compared with US$439
million, or 14.4 percent, for the third quarter last year. For the
first nine months of 1997, R&D expenses were US$1.52 billion, or 14.3
percent of revenues, up from US$1.29 billion, or 14.9 percent, in the
same period last year, primarily reflecting planned and ongoing
investments across all lines of business.
Mr. Roth remarked on the outlook for Nortel: ''The strengths that each
of our four lines of business has demonstrated in their markets have
made Nortel a more balanced company than just a few years ago, and has
positioned us well to provide total solutions to a variety of customers
in a rapidly growing industry. This balanced position, when coupled
with our dedicated workforce focused on customer needs, supports my
optimism for Nortel's long term growth.''
Nortel's common shares are listed on the New York, Toronto, Montreal,
Vancouver and London stock exchanges.
Nortel had 1996 revenues of US$12.8 billion and has approximately
70,000 employees worldwide.
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