Q4 2003 revenues of US$2.83 billion, up 12 percent compared to the fourth quarter of 2002, and up sequentially 25 percent
Q4 2003 net earnings of US$499 million, US$0.11 per common share on a diluted basis
Strong cash balance of US$4.0 billion, up sequentially US$428 million
Fourth Quarter 2003 Results
Revenues were US$2.83 billion for the fourth quarter of 2003 compared to US$2.53 billion for the fourth quarter of 2002 and US$2.27 billion for the third quarter of 2003. Nortel Networks reported net earnings in the fourth quarter of 2003 of US$499 million, or US$0.11 per common share on a diluted basis, compared to a net loss of US$168 million, or US$0.04 per common share, in the fourth quarter of 2002 and net earnings of US$185 million, or US$0.04 per common share on a diluted basis, in the third quarter of 2003.
Net earnings in the fourth quarter of 2003 included
US$109 million of net earnings from discontinued operations ? net of tax; charges of US$14 million for
deferred stock option compensation associated with acquisitions; and US$9 million of special charges related to
restructuring activities . The Company’s results also reflected a net tax benefit of US$37 million which included a net benefit of US$41 million associated with tax audits and settlements.
Commenting on the Company’s outlook, Dunn said, “As we enter 2004, we remain committed to our business strategy of technology and solutions leadership in helping our customers transform their networks and implement new applications and services to drive improved productivity, reduced costs and revenue growth. While we expect that the percentage growth in the overall capital spending by our customers will be in the low single digits in 2004 compared to 2003, we expect to grow faster than the market by leveraging our particular strengths in Voice over IP and wireless data solutions.”
For the first quarter of 2004, the Company expects a seasonal decline in revenues compared to the fourth quarter of 2003.
Nortel Networks continues to expect its gross margin percentage to trend in the mid 40’s range over the near term.
Discontinued Operations
The Company reported net earnings from discontinued operations of US$109 million, which primarily reflected a gain in the amount of US$31 million from the disposition of shares in Arris Group Inc., a collection of US$26 million of previously deemed uncollectible receivables and a gain of US$18 million for the sale of our fixed wireless access business.
http://www.nortelnetworks.com/corporate/events/q4earnings_2003/collateral/4q2003_supplementary.pdf
http://www.nortelnetworks.com/corpo...03/collateral/4q2003_consolidated_results.pdf
http://www.nortelnetworks.com/corporate/events/q4earnings_2003/collateral/4q2003_balance_sheets.pdf
http://www.nortelnetworks.com/corporate/events/q4earnings_2003/collateral/4q2003_cash_flows.pdf
(It 's UNADUITED report.)