Things seem to be looking up for Nortel Networks Corp.
The Canadian telecom equipment maker said Tuesday it earned $27 million, or 5 cents a share, in the third quarter of 2007, compared to a loss of $64 million, or 14 cents per share, a year earlier. However, revenue fell slightly because Nortel had trouble filling some customer orders. Third-quarter sales totaled $2.7 billion, down from $2.93 billion in the third quarter of 2006.
Nortel also recorded $56 million in restructuring charges; the company this year has seen mass layoffs and cost-cutting as it has tried to recover from a major accounting scandal as well as the telecom bust of the early 2000s.
The entire equipment sector is slowing as operators reduce capex investment and software replaces hardware. Still, CEO Mike Zafirovski told analysts Nortel should see “modest growth” in 2008.
Nortel also expects flat fourth-quarter revenue, as compared to the same period last year.
The company’s stocks were up $1.94 on the NYSE to $18.22 during late morning trading.
Nortel Networks Corp. www.nortel.com
