Nortel revenues halved
Networking equipment vendor Nortel Networks has reported widening losses of $US3.47 billion for its fiscal third quarter 2001, as the company continues to chip away non-core businesses in a bid to improve efficiency. Revenue for the three months to September 30 plummeted to $3.69 billion, down almost half from the $6.73 billion reported in fiscal 2000. Sales were dashed by reduced levels of spending among telecommunication customers, while profits were hurt by costs related to layoffs and other ongoing restructuring efforts designed to help streamline the company. Nortel warned in October that it would report a big loss for the quarter, and said it would cut 10,000 more jobs as it tries to prune its worldwide workforce to 45,000.
IBM hopes for network processor rebound
IBM expects to see a rebound in the network processor market late next year, driven mainly by demand for LAN access and mobile phone base stations. "The LAN is now 100 megabit. But we see the LAN upgrading to gigabit because gigabit copper transceivers have reached the critical cost point to enable that transition," said Steve Longoria, director of marketing for network processing, IBM Microelectronics. There are also more demands on networks now than in the past. "They're being asked to do things servers used to do," he said.
Networks retard Nokia
Nokia has reported lower earnings and declining sales for its third quarter - with poor sales of network equipment hampering the vendor. Net profit for the quarter fell 18 per cent to 760 million euros ($A1.34 billion), compared to 923 million euros for the corresponding quarter a year ago. Net sales for the quarter were 7.05 billion euros, down 7 per cent from the same quarter in 2000. According to Nokia, the biggest decline came from its networks division, with a 14 per cent fall in sales to 1.66 billion euros in the third quarter of 2001, compared to 1.93 billion euros in the third quarter of 2000.