Nortel (NT:NYSE - news - commentary - research - analysis) met recently lowered first-quarter financial targets Thursday, but the troubled Canadian telecom gearmaker said customer spending cuts will make for flat results in the second quarter.
The company also trimmed its workforce by 3,000 jobs, or 6% of its staff. The company has already trimmed its staff by half from peak 2001 levels, to around 47,000. Nortel said the ongoing cuts will help to offset an uncertain customer spending picture and help the company cut its revenue breakeven point to $3.5 billion.
For the first quarter ended March 31, Nortel lost 14 cents a share on a pro forma basis, excluding certain costs, on revenue of $2.9 billion. Including those costs the loss was 26 cents a share.
Nortel said its cash position fell to $3.1 billion at quarter-end from $3.5 billion at the end of 2001. The company recently drew down a bank credit line when it had trouble negotiating terms of a rollover as the loan expired.
The company also trimmed its workforce by 3,000 jobs, or 6% of its staff. The company has already trimmed its staff by half from peak 2001 levels, to around 47,000. Nortel said the ongoing cuts will help to offset an uncertain customer spending picture and help the company cut its revenue breakeven point to $3.5 billion.
For the first quarter ended March 31, Nortel lost 14 cents a share on a pro forma basis, excluding certain costs, on revenue of $2.9 billion. Including those costs the loss was 26 cents a share.
Nortel said its cash position fell to $3.1 billion at quarter-end from $3.5 billion at the end of 2001. The company recently drew down a bank credit line when it had trouble negotiating terms of a rollover as the loan expired.
