Nortel Reports Q2 Revenue of $2.74 billion, up 5% YOY

Nortel Networks reported Q2 revenues of $2.74 billion, up 5% year over year. Q2 net earnings were $366 million, $0.08 per common share on a diluted basis.



Mobility and Converged Core Networks revenues were $1.59 billion, an increase of 7 percent compared with the year-ago quarter and an increase of 12 percent sequentially.



Enterprise Solutions and Packet Networks revenues were $1.07 billion, a decrease of 1 percent compared with the year-ago quarter and an increase of 23 percent sequentially.



Deferred revenues decreased sequentially by $14 million and backlog increased by approximately $194 million.



"Our second quarter performance underscores both the challenges and good progress we are making with Nortel's transformation. On the plus side we saw strong order growth of 22% and increased sales momentum but gross margin was up only modestly and not at the 40% target we have set for ourselves," said Mike Zafirovski, president and chief executive officer, Nortel.

http://www.nortel.com