Nortel Posts $37 Million Loss

Nortel Networks posted a second-quarter loss on Thursday.

The company reported a $37 million loss, or 7 cents a share, compared with a net income of $342 million, or 79 cents a share a year earlier. That number was inflated by a $510 million legal settlement.

Nortel said the net loss in the second quarter included special charges of $36 million for restructuring, a $35 million provision related to discussions with the SEC, a gain of $69 million due to favorable effects of changes in foreign exchange rates and a gain of $10 million on the sale of assets.

Revenue fell 8 percent to $2.56 billion from $2.78 billion last year.

The company said for the whole year it expects revenue to be flat or down slightly from 2006.

Nortel has been under investigation by the SEC since 2004 regarding previous restatements of its financial results. The company is also restructuring and said earlier this year it would cut 2,900 jobs.

Nortel Networks

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