Nortel 1Q07 results

We know now a little bit more than last week on financial results. Revenues were $2.5bn and net loss was $103m. It was a pretty good surprise for analysts, as the loss includes a special $80m restructuring charge. Furthermore, proforma revenues (without UMTS business sold to ALU) grew 12%. Carrier network revenues rose 5% to $1bn; Enterprise revenues grew 31% to $597m, and service revenues grew1% to $448m. Metro Ethernet revenues were up 27% to $373m, thanks to MSO orders. Gross margin was back to above 40%, but is not expected to grow further in the year. Nortel didn't change its full fiscal-year forecast with revenues flat (proforma)