Nortel's Revenues Rise 25% Sequentially

Nortel Networks reported quarterly revenues of US$2.83 billion, up 25% over the preceding quarter and up 12% over Q4 2002. Nortel Networks reported net earnings in the fourth quarter of 2003 of US$499 million, or US$0.11 per common share on a diluted basis, compared to a net loss of US$168 million, or US$0.04 per common share, in the fourth quarter of 2002 and net earnings of US$185 million, or US$0.04 per common share on a diluted basis, in the third quarter of 2003.


Compared to the fourth quarter of 2002, Wireless Networks revenues increased 33%, Enterprise Networks revenues decreased 2%, Wireline Networks revenues increased 9% and Optical Networks revenues decreased 18%. Compared to the third quarter of 2003, Wireless Networks revenues increased 35%, Enterprise Networks revenues increased 10%, Wireline Networks revenues increased 26% and Optical Networks revenues increased 16%.


Compared to Q3 2003, sales in the U.S. increased by 38%, EMEA increased by 11%, Canada increased by 56% and other areas of the world decreased 2%.


Gross margin was 48% for the quarter.


Frank Dunn, president and chief executive officer, Nortel Networks, said 2003 truly marked a "turning point" for the company. As for 2004, while he expects overall capital spending by Nortel's customers to grow by a low single digit%age compared to 2003, Dunn predicts Nortel will grow faster than the market overall by leveraging its strengths in VoIP and wireless data. http://www.nortelnetworks.com