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Nortel nets loss in Q1

Canadian firm Nortel Networks posted a quarterly net loss last week despite an increase in sales year-on-year.

Canadian firm Nortel Networks posted a quarterly net loss last week despite an increase in sales year-on-year.

Nortel, which has been struggling to turn its fortunes around after suffering an accounting crisis in 2004, registered a net loss of US$103million for its 2007 fiscal first quarter, ended March 31, in comparison to a net loss of US$171million in the first quarter of 2006.

Revenues for the first quarter grew 4% year on year to US$2.48 billion or by 12% excluding the impact of Nortel's UMTS access divestiture.

The company said higher revenues were down to strong sales in its enterprise solutions and metro ethernet networks divisions.

"While our first quarter results demonstrated significantly improved financial performance, we must and will continue our relentless pursuit of customer satisfaction and business transformation to deliver on our 2007 business plan," said Nortel president and CEO Mike Zafirovski.