Nortel Networks Corp. posted a loss of $103 million, or 23 cents per share, during the first quarter of 2007, as compared to a loss of $171 million, or 39 cents per share, a year earlier.
However, the Canada-based equipment maker said on Thursday, revenue increased, gross margins improved and legal expenses finally declined. Revenue rose 4 percent, from $2.39 billion to $2.48 billion.
Nortel still faces some legal costs. Four former senior executives face charges from both the United States and Canadian governments for fraudulently and repeatedly restating the company’s financials and misleading investors. The Securities and Exchange Commission (SEC) has filed civil charges against Frank Dunn, Douglas Beatty, Michael Gollogly and MaryAnne Pahapill. Meanwhile, Canada’s Ontario Securities Commission also filed a complaint against the four.
The SEC has formally probed Nortel’s accounting practices since early 2004. Former president and CEO Dunn, who also did a stint as CFO, CFO Beatty, controller Gollogly and assistant controller Pahapill all were fired in April 2004.
Nortel earlier this year also announced it was cutting 2,900 jobs and outsourcing another 1,000.
The company’s stocks were down 9 cents in early afternoon trading on the New York Stock Exchange, to $25.19.
Nortel networks Corp. www.nortel.com