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Nortel meets Street
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April 19, 2001: 5:24 p.m. ET
Nortel Networks meets lowered 1Q expectations on revenue of $6.18B
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NEW YORK (CNNfn) - Telecommunications equipment maker Nortel Networks met lowered first-quarter expectations Thursday, posting a loss of 12 cents per share, and now plans to cut 5,000 more jobs than previously anticipated.
The company reported a quarterly loss of $385 million compared to earnings of $347 million, or 12 cents per share, in the year-earlier period. Revenue for the quarter was $6.18 billion, compared to $6.32 billion in the first quarter of 2000.
Analysts surveyed by First Call expected Nortel to produce revenue of $6.1 billion.
Revenue for network infrastructure, the company's largest unit, declined 2 percent from the same period a year ago.
In February Nortel announced it would post a first-quarter loss of about 4 cents per share and cut 10,000 jobs due to a severe slowdown in the telecom sector. The Toronto-based company warned again in March, saying it expected a loss between 10 and 12 cents per share and was cutting an additional 5,000 jobs.
Nortel now expects to cut 5,000 additional jobs by midyear, bringing total cuts to 20,000 since December of last year.
In a statement the company declined to give guidance for the second quarter of the year.
"We only expect a meaningful rebound in capital spending following a period of industry rationalization and an improved economic environment," said John Roth, Nortel president and CEO, in a statement. "Given the uncertainty as to the extent and timing of these events we are not providing specific financial guidance for the next quarter of full year 2001."
Shares of Nortel (NT: Research, Estimates) rose 20 cents to $17.65 on the New York Stock Exchange. They fell to $17.30 in after-hours trade. 
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