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Nortel 4Q in line
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January 17, 2002: 4:22 p.m. ET
Reports 4Q loss smaller than 3Q and in line with December guidance.
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NEW YORK (CNN/Money) - Nortel Networks reported a fourth-quarter loss in line with Wall Street expectations and its own guidance as the telecom company managed to again narrow its loss from the previous quarter.
The company said it sees revenue falling by more than analysts expected in the next quarter, but sees a return to profitability in the fourth quarter of 2002.
Nortel (NT: Research, Estimates) reported a quarterly loss before certain items of $506 million, or 16 cents per share, compared with earnings of $929 million, or 29 cents per share, in the year-ago quarter.
The company said revenue from continuing operations was $3.46 billion, down sharply from the $8.2 billion it reported in the fourth quarter of 2000 but ahead of First Call's consensus estimate of $3.37 billion.
Nortel said in December it expected to lose 16 cents per share, 2 cents narrower than the First Call consensus estimate at the time.
"Revenues for the fourth quarter were in line with our expectations, while our reported bottom line results were better than expected due to gains on sales of businesses which closed late in the quarter," said Terry Hungle, Nortel CFO, in a statement.
"Our cash management focus resulted in a strong cash balance which increased from the third quarter," Hungle said.
Looking ahead, the company said "market visibility remains limited given the uncertainty of the economic downturn" and it expects customers to "move cautiously in the near-term while maintaining the flexibility to increase spending in the future."
Nortel sees first-quarter 2002 revenue to be about 10 percent lower than the 2001 fourth quarter, but to grow gradually in the second quarter of 2002.
On average, analysts surveyed by First Call expected sales of first-quarter 2002 to fall less than 1 percent from the fourth quarter of 2001.
The company said it sees profitability in the fourth quarter of 2002.
Not excluding any items, Nortel reported a net loss of $1.83 billion, or 57 cents per share, compared with a net loss of $1.4 billion, or 46 cents per share, in the same period a year ago.
The stock fell 29 cents to $7.45 after hours. 
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