Nortel reports better results

Networking player Nortel is on the road to recovery after reporting a significant improvement in performance. CEO Owens is upbeat about the company’s future after recent executive re-shuffles.

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By  Simon Duddy Published  August 9, 2005

Nortel has published it latest financial results showing significant improvement in performance. The networking giant reeled in revenues of US$2.86 billion in Q2 2005, which represents a 10% year over year improvement. In the Europe, Middle East and Africa (EMEA) region, revenue was US$721 million in the three months ending June 2005. This represents a 12% increase compared to 2004’s US$643m. In the six months ending in June 2005, the firm earned US$1,443 million compared to a 1H04 figure of US$1,239 million, representing a 16.5% increase. “Our results demonstrate progress against our strategic plan. We are playing to win, and Nortel's commitment is to long term value, not just short term gain. This should be apparent as we continue to increase our investment in our enterprise business, evolve our product portfolio and build new businesses. We are driving our investment strategy to maintain our technology and market leadership in our chosen markets around the world,” says Bill Owens, chairman and CEO of Nortel. Nortel highlighted wireless momentum as a key factor in the figures with a number of wireless operators on HSDPA trials and deployments in 2005 including mm02, Orange, Vodafone and Mobilkom Austria. Earlier this year, Nortel Networks has made senior management changes designed to strengthen the company’s leadership team, drive global operational excellence and position Nortel for the future. It included the creation of the role of chief ethics and compliance officer to repair some of the damage done to the company’s credibility through financial mismanagement.

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