Nortel revenues took a tumble in their second quarter. The company reported last week sales of $2.56 billion for the second quarter of 2007 compared to $2.78 billion for the second quarter of 2006 and $2.48 billion for the first quarter of 2007. The Company also reported a net loss in the second quarter of 2007 of $37 million.
"Good progress is being made in our effort to reshape Nortel to deliver sustained value to shareholders. On balance, the key indicators of our financial health moved in a positive direction in the quarter," said Nortel President and CEO Mike Zafirovski.
"Gross margin of 41.1 percent was the highest in eight quarters and the operating margin expanded significantly on a year-over-year basis for the fourth consecutive quarter. Revenues were down 8% this quarter, principally as a result of the UMTS divestiture and the timing of contract completion. Revenues were up 3% sequentially and we are confident that the traction we are seeing with customers will translate into much higher sequential growth for the remainder of the year."