Ontario-based Nortel Networks reported Q2 revenues increased 48 percent to $7.82 billion from $5.28 billion in the same period of 1999.
Net earnings were $561 million, or $0.18 per share ($320 million; $0.11), an increase of 64 percent. Including acquisition related costs and one-time gains and charges, Nortel recorded a net loss applicable to common shares in the second quarter of 2000 of $745 million or $0.26 per share.
“Nortel had another quarter of outstanding growth,” said CEO John Roth. “In particular, our optical wireless and high speed solutions revenues grew more than 150%; 18%; and 80% respectively, over the second quarter of 1999”
“We also made significant strides in our wireless internet business with over $1 billion in customer announcements and we were selected the principal supplier to the BT Cellnet 3rd generation wireless network.”
Roth also credits the transformation of Nortel Networks supply chain during the past 18 months as a major factor contributing to the tremendous success in the first half of 2000.
“We now have one of the industry’s most effective supply chains,” said Roth. “With the momentum we have been experiencing during the first half of this year, supported by an 85 percent increase in order input and a 1.35 book to bill in the quarter, we are revising our outlook for full year 2000 performance.
“We expect that our percentage revenue growth in 2000 over 1999 will be in the low 40s, up from our previous view of 30 to 35 percent, and that our percentage growth in EPS from operations in 2000 compared with 1999 will be in the high 30s.”
Looking to 2001, Nortel chief financial officer Frank Dunn, said: “We expect to continue to grow significantly faster than the market growth rate of 20 to 21 percent, with anticipated growth in revenues and EPS from operations in the 30 to 35 percent range.”