Nortel announced 3Q06 revenues of $3bn, up 17%, and net loss of $99m, vs net loss of $136m last year. Mobility and Core networks revenues increased 2% to $1.54bn, Metro Ethernet revenues grew 18% to $430m; Enterprise solutions revenues improved 14% to $609m and Global services increased 4% to $316m. Gross margin was 38%, slightly down, primarily impacted by pricing pressures. R&D expenses continued to grow (+8.3%), impacted by increased investment in targeted product areas and the creation of the LG-Nortel joint venture. Cash balance was $2.6bn, up 37% qoq. Nortel reported also 9-mo results with revenues of $ 8.1bn, up 7.3%, and net earnings of $100m vs net loss of $273m a year ago. NA account for 50% of revenues, EMEA for 29%, APAC for 15% and CALA for 5.5%. But the results did not convince the financial community, with Nortel shares falling 8% after the announcement.