Vendor results - 5June 2005

Nortel reported 1Q05 net loss of $ 49m (vs. income of $59m), on revenues of $2.5bn, up 4%. GSM mobile business reported a turnover of $788m, up 20%, CDMA infrastructure posted $535m (down 6%), carrier packet networks sales declined 3% to $664m, and enterprise business grew 2% to $547m.
It finally succeeded in cleaning its financial data and in reporting revised figures for 2002, 2003 and 2004. For 2005, Nortel forecast gross margin of 40+% and continued growth in revenues. It is still in recovery period and is continuing effort to cut costs by additional $400m, and lay off remaining 850 people on the announced plan of 3250.Nortel ended the quarter with $3.4bn in cash.

Ciena posted 1Q05 revenues of $104m, up 39%, and a net loss of $75m ($76m a year ago). Gross margin is improving 0.6 point to 26.2%, and cash available amounted to $1.2bn.