NORTEL issed statement about FY2001 outlook:
Nortel Networks' Multiple Growth Engines Continue To
Underpin Creation of High-Performance Internet &
Drive Strong Business Momentum
Very Confident in Previously Stated Guidance; Emphasizes Continued Strong Outlook for Fourth Quarter
of 2000, First Quarter of 2001 and Fiscal Years 2000 and 2001
BOSTON, Mass., Nov. 20 /PRNewswire/ - At its annual investors conference to be held here tomorrow, Nortel Networks
Corporation(a) (NYSE/TSE: NT) will emphasize gains in customers and market share for its end-to-end Internet solutions across its
key markets. Nortel Networks continues to see strong demand for its city-to-city Optical Internet capabilities and is extending this
leadership position into new high-growth opportunities such as high-speed Optical Internet within cities and Wireless Internet.
Overall, the Company is accelerating to new levels of leadership in the Optical and Wireless Internet market. The Company will
also emphasize its strong outlook and guidance for the fourth quarter of 2000, fiscal year 2000, the first quarter of 2001, and fiscal
year 2001.
``We continue to expect that our percentage growth in revenue and earnings per share from operations(b) in 2000 over 1999 will
be in the low 40's,'' said John Roth, president and chief executive officer, Nortel Networks. ``As we enter the final month of the
quarter, we are very confident in our previously stated guidance of revenue and earnings per share from operations(b) in the
fourth quarter of 2000 in the range of US$8.5 billion to US$8.8 billion and US$0.26 per share on a fully diluted basis,
respectively. Overall, we expect continued strong growth in Optical Internet, Wireless Internet, Local Internet and eBusiness
solutions. We continue to expect our Optical Internet revenues to grow in excess of 125 percent in 2000 over 1999, to exceed
US$10 billion.''
``Looking forward to 2001, we continue to expect the overall market to grow in excess of 20 percent. Given our strong market
position and leadership in high-performance Internet solutions, we continue to expect to grow significantly faster than the market,
with anticipated growth in revenues and earnings per share from operations in the 30 to 35 percent range,'' said Roth. ``For the
first quarter of 2001, consistent with historical profile trends, we continue to expect our revenue and earnings per share from
operations(b) will be in the range of US$8.1 billion to US$8.3 billion and US$0.16 per share on a fully diluted basis, respectively.''
In presentations to be given tomorrow, Nortel Networks executives will emphasize the company's strong outlook based on robust
demand and market share gains. ``The Internet revolution and bandwidth demand curve have just begun,'' added Roth. ``Our
leading capabilities spanning Optical, Wireless, Local Internet and eBusiness, represent a broad, balanced high-growth portfolio.
Our growth in these areas is supported by our leadership in, and the strong demand we are seeing for, our city-to-city Optical
capabilities in North America, Europe and now Asia. Our first-mover advantage in 40/80 Gbps Optical Internet, Wireless Internet
and high-performance eBusiness solutions, and the growing demand for high-speed Optical capabilities within cities across all
geographies are also contributing to our momentum.''
Nortel Networks executives will also emphasize that they expect the company to continue to grow faster than the market by
focusing on high-growth areas, driving profitability and streamlining operations for efficiencies. The company is uniquely
positioned to balance supply with demand and take advantage of one of the most powerful supply webs in the industry.
Executives will also point to robust global demand. Nortel Networks is building 34 of 40 major fiber optic network projects
underway worldwide, including the first four 10Gbps networks in the People's Republic of China (PRC). Also in the PRC, Nortel
Networks has won wireless networks contract awards in 17 of the 31 provinces. The company is also maintaining its first mover
advantage in 3G Wireless in Europe with recent wins with BT Cellnet, Xfera and Airtel.
A webcast of the conference and executive presentations will be available to all interested parties on Nortel Networks' website at
www.nortelnetworks.com/corporate/events/investorconf/index.html.
Nortel Networks is a global Internet and communications leader with capabilities spanning Optical, Wireless, Local Internet and
eBusiness. The Company had 1999 U.S. GAAP revenues of US$21.3 billion and serves carrier, service provider and enterprise
customers globally. Today, Nortel Networks is creating a high-performance Internet that is more reliable and faster than ever
before. It is redefining the economics and quality of networking and the Internet, promising a new era of collaboration,
communications and commerce. Visit us at www.nortelnetworks.com.
Certain information included in this press release is forward-looking and
is subject to important risks and uncertainties. The results or events
predicted in these statements may differ materially from actual results
or events. Factors which could cause results or events to differ from
current expectations include, among other things: the impact of price and
product competition; the dependence on new product development; the
impact of rapid technological and market change; the ability of Nortel
Networks to make acquisitions and/or integrate the operations and
technologies of acquired businesses in an effective manner; general
industry and market conditions and growth rates; international growth and
global economic conditions, particularly in emerging markets and
including interest rate and currency exchange rate fluctuations; the
impact of consolidations in the telecommunications industry, the
uncertainties of the Internet; stock market volatility; the ability of
Nortel Networks to recruit and retain qualified employees; and the impact
of increased provision of customer financing by Nortel Networks. For
additional information with respect to certain of these and other
factors, see the reports filed by Nortel Networks with the United States
Securities and Exchange Commission. Nortel Networks disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.
(a) On May 1, 2000, Nortel Networks Corporation acquired all of the
outstanding common shares of Nortel Networks Limited (formerly called
Nortel Networks Corporation) by way of a Canadian court-approved plan
of arrangement. Nortel Networks Limited has preferred shares
outstanding which are publicly traded. Nortel Networks Limited's
financial results have been consolidated into the results reported
for Nortel Networks Corporation. Holders of Nortel Networks Limited
preferred shares will receive separate financial disclosure from
Nortel Networks Limited in accordance with the requirements of
applicable law.
(b) Net earnings from operations applicable to common shares is defined
as reported net earnings applicable to common shares before
"Acquisition Related Costs" (in-process research and development
expense, the amortization of acquired technology and goodwill from
the August 1998 acquisition of Bay Networks, Inc. and all subsequent
acquisitions), stock option compensation from
acquisitions/divestures, and one-time gains and charges.
SOURCE: Nortel Networks Corporation |
