Nortel meets expectations

(Telephony) The world’s leading fiber-optics equipment provider Nortel Networks announced Thursday that it met or slightly exceeded analysts’ expectations for the fourth quarter 2000, posting revenues of $8.82 billion and operations earnings of $825 million, or 26 cents per share.

Revenues for the fourth quarter 2000 increased 34% from the same period in 1999, which produced $6.57 billion in revenues. Total revenues for 2000 were up 42%, from $21.29 to $30.28 billion.

A First Call survey of 39 analysts showed fourth quarter 2000 expectations of 26 cents per share on revenue of $8.67 billion.

“We are extremely pleased with our fourth quarter results, especially the strong growth in the optical Internet, wireless Internet and core IP networking,” said John Roth, president and CEO of Nortel. “Overall, the fourth quarter capped a year of exceptional growth.”

Nortel delivered on its $10 billion projection in its optical-networking segment, a figure more than double its 1999 performance, posting $10.1 billion in sales for 2000.

Chief Financial Officer Frank Dunn predicted Nortel’s strong finish in the fourth quarter would carry over into the first quarter of 2001, predicting $8.1 billion in revenues and earnings of 16 cents per share. For the year 2001, Nortel said it expects revenues and earnings to grow by 30%.

Dunn said the forecasts for 2001 were based on the assumption that the Federal Reserve will take appropriate actions to avert a recession and accelerate cash flow.

“We’re delighted to have turned in, which is by all records, a fantastic year for Nortel and pleased we’re able to deliver against the expectations that we set out in terms of revenue,” Roth said. “As we enter 2001, we have a very strong position--much improved from this time last year in terms of our stature and recognition worldwide in leadership in optical.”