Nortel posts loss, says it will meet target

Nortel Networks posted a bigger first-quarter loss as a series of charges weighed on results, a Reuters report said.

The firm however reassured investors that it still expects to meet its full-year targets, the Reuters report added.

Nortel reported a loss of €89.3 million (US$138 million) compared with a loss of €67 million (US$103 million) a year earlier.

Revenue was €1.6 billion (US$2.76 billion), up 11.1%, the report said.

The boost included a release of deferred revenue related to the completion of a big contract in Nortel's joint venture with South Korea's LG Electronics that was previously expected to happen in the second quarter, the company said.

Despite the loss in the quarter, Nortel said it was pleased with the results and expects to achieve its full-year forecasts.

These include revenue growth in the low single digits, gross margin of about 43% of revenue, and operating margin as a percentage of revenue to increase by about 300 basis points, the report further said.