Nortel posts profit but sales are down

Nortel posted a profit in its third quarter despite revenue falling 7.6 percent. Net income for the quarter totaled $27 million, up from a net loss of $63 million during the same quarter last year. Its Q3 results included a $67 million in foreign currency gains, offset by a $56 million restructuring bill. Nortel plans to cut 2,900 jobs and move another 1,000 positions to lower-cost locales.

Nortel said a key reason for the drop in revenue was difficulty in fulfilling customers orders for CDMA technologies. The company relocated one of its facilities that manufactures CDMA technology. That relocation effort and the resulting loss of business resulted in about $45 million in missed revenue. Revenue at Nortel's carrier business dropped 19.1 percent to $1.1 billion. The sales of its UMTS Access unit hurt carrier business revenue, too.

For more on Nortel's Q3:
- read this press release
- read this article from the WSJ (sub. req.)