Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : SDLI - JDSU transition -- Ignore unavailable to you. Want to Upgrade?

To: pat mudge who wrote (1639)	6/15/2001 8:50:30 AM
From: Full-On	Read Replies (1) \| Respond to of 3294

Slightly OT - Nortel Forecasts Loss, Cuts Jobs biz.yahoo.com TORONTO (Reuters) - Nortel Networks Inc (NYSE:NT - news; Toronto:NT.TO - news), in a shock warning to financial markets, on Friday announced new job cuts and predicted a big second quarter loss as customers cut back significantly on purchases of telecommunications equipment. In a statement issued before the markets opened on Friday Nortel, the world's largest supplier of telecom equipment, said it expects a second-quarter loss of $19.2 billion after charges incurred in the restructuring and streamlining of the company. Facing the prospect that customers might not flood back until the second half of 2002, Nortel also said it was adjusting ``intangible assets'' by $12.3 billion and halting dividend payments. ``While there can be no certainty as to the duration of severity of this industry adjustment, meaningful growth in spending is not expected to occur before the second half of 2002, after economic concerns subside and rationalization of the telecom industry is well underway,'' chief executive John Roth said in one of two statements. The news hit Nortel's stock price in pre-market trading and put tech stocks in other countries under severe pressure. Shares in Finland's Nokia dropped 6 percent in Helsinki. Nortel was trading down at $9.50 in premarket dealings in New York, down from Thursday's close of $10.60. The share is just over 10 percent of its year-high around $89. Nortel said it would report a loss of $1.5 billion or 48 cents a share on revenue of $4.5 billion in the second quarter before the impact of charges for bad debts and a work force reduction. The company said it would slash a further 10,000 jobs, above and beyond the 20,000 already announced in April. Charges to be taken in the second quarter include $950 million for inventory write-downs and bad debts, $830 million for work force reductions, and $2.6 billion for the closure of various businesses. Nortel said it would discontinue its access solutions operations, which accounted for 7.7 percent of revenues in fiscal 2000 and 6.9 percent of Nortel's revenues in the first quarter of 2001. The company also said it had agreement for a $2 billion unsecured credit facility to give its flexibility to ``execute our work plan over the next 18 months.''