Nortel Networks's revenue in the first quarter rose slightly from a year earlier, but the telecommunications and networking equipment vendor lost money, according to its latest regulatory filing.
In the quarter ended March 31, the company had revenue of $US2.54 billion, compared with $US2.44 billion in the first quarter of 2004. Revenue was flat or down in most product segments but grew in its Global System for Mobile Communication (GSM) and Universal Mobile Telecommunications Service (UMTS) business.
Nortel attributed most of this gain to a deal signed last year with Bharat Sanchar Nigram to build a wireless network in India.
Itl had a net loss of $US49 million in the quarter after net income of $US59 million a year earlier. Its per-share loss was $US0.01, compared with earnings of $US0.01 per share in last year's first quarter.
Nortel is still on the rebound from the telecommunication industry's downturn as well as an accounting scandal that caused a management shakeup and forced the company to restate several quarters of financial results.
In the year ahead, it sees continued consolidation of carriers, especially in the US, and expects that trend to reduce spending by its carrier customers as they seek efficiencies, according to comments in the Form 10-Q that Nortel filed with the US Securities and Exchange Commission. However, the company also said it saw potentially significant growth in China and India this year.