Nortel Networks Risk Of Bankruptcy

readytoretire answered one year ago …

Nortel posted a $.30 a share loss last quarter, not including writedowns of $3.4B. They said their income was down 14%. The analysts were expecting a loss of .04 a share. With the announced cost cutting, Nortel expects to save $400M a year. That level of savings would just get them even. And laying off that many employees will ensure that the next quarter doesn't look good either. With the general market still contracting, their outlook doesn't look good. Tough road for a while, assuming they can stay around. Don't know if Canada will throw them a lifeline or not.