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To: Softechie who wrote (1503)	7/20/2001 1:14:06 AM
From: Softechie	Read Replies (1) \| Respond to of 2155

Nortel Networks Results -5: $5B In Liquidity 19 Jul 17:40 Nortel Networks Corp. (NT) said cost-cutting programs are expected to result in savings of about $1 billion pretax each quarter. It said it expects to substantially realize that level of savings in the fourth quarter. The company said its cash outflow from operations was about $500 million in the second quarter, which was "significantly better than expectations." It said its funded customer financing portfolio was essentially unchanged during the quarter and it significantly reduced its unfunded commitments. It said it has more than $5 billion in sources of available liquidity "to execute our work plan." It said the "challenging industry dynamics" are expected to continue, and it doesn't expect meaningful growth in (telecom) spending to occur before the second half of 2002. "As a result, our visibility continues to be limited for the near term and we will not provide guidance for the third quarter or full-year 2001 at this time," the company said. Revenue from Network Infrastructure was down 39% in the second quarter from a year earlier. Wireless Internet solutions were up substantially in Asia and the U.S., partly offset by a considerable decline in Latin America and a significant decline in Europe. Optical Inter-city revenue was down sharply in the U.S. and Canada and down substantially in Europe, partly offset by considerable growth in Asia. Revenue in the Photonic Components segment was down 78% in the second quarter, largely because of lower sales of Optical Enterprise products across all regions. On a geographic basis, revenue fell 51% in the U.S., fell 41% in Canada and fell 7% outside these two countries, during the second quarter. In a separate press release, Nortel said it has formed strategic alliances with five engineering and construction-services firms to accelerate the build-out of customer network-infrastructure products. It said these alliances - with ABB,AMEC, Skanska, Bovis Lend Lease and Fluor Corp. - will position Nortel to install wireless, fiber and data networks more quickly, efficiently and cost-effectively. Effective immediately, the new alliance companies will provide services related to preparing sites and buildings for network deployments. These services will include construction engineering tasks, such as site search, site acquisition, planning/wayleave/building permit applications, feasibility studies and structural design; and site construction activities, like physical project management, construction, and site preparation. Nortel Networks is a network-equipment vendor. -John Moritsugu, Dow Jones Newswires; 416-306-2100 (END) DOW JONES NEWS 07-19-01 05:40 PM