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January 18, 2001 Nortel Networks Reports Record 2000, Capped with Strong Results for the Fourth Quarter Revenues up 42% for 2000; 34% in the quarter EPS from Operations up 42% for 2000; 24% in the quarter Optical Internet Revenues top US$10 billion for 2000 Confirms Guidance for Q1 and 2001 within Previous Ranges BRAMPTON, ONT. - Nortel Networks* Corporation(a) [NYSE/TSE: NT] reported results for the fourth quarter and the year 2000 prepared in accordance with U.S. generally accepted accounting principles. Fourth Quarter 2000 Results Revenues increased 34 percent to US$8.82 billion for the fourth quarter of 2000 from US$6.57 billion for the same period in 1999. Net earnings from operations applicable to common shares(b) for the quarter were US$825 million, or US$0.26 per share on a diluted basis, compared to US$607 million, or US$0.21 per share on a diluted basis, for the same period in 1999, an increase in earnings per share from operations of 24 percent. Including Acquisition Related Costs(b), stock option compensation from acquisitions and divestitures, and one-time charges, Nortel Networks recorded a net loss applicable to common shares in the fourth quarter of 2000 of US$1.41 billion or US$0.46 per share. Year 2000 Results For 2000, revenues increased 42 percent to US$30.28 billion from US$21.29 billion for 1999. Net earnings from operations applicable to common shares(b) for 2000 were US$2.31 billion, or US$0.74 per share on a diluted basis, compared to US$1.43 billion, or US$0.52 per share on a diluted basis, for 1999, an increase in earnings per share from operations of 42 percent. Including Acquisition Related Costs(b), stock option compensation from acquisitions and divestitures, and one-time gains and charges, Nortel Networks recorded a net loss applicable to common shares of US$3.47 billion, or US$1.17 per share, for 2000. "We are extremely pleased with our fourth quarter results, especially the strong growth in Optical Internet, Wireless Internet, and Core IP Networking. Overall, the fourth quarter capped a year of exceptional growth, which was in line with our expectations. We saw our High Performance Internet solutions portfolio, one of the strongest and broadest in the industry, drive the many achievements and gains made across all geographic areas," said John Roth, president and chief executive officer, Nortel Networks. "Looking back over 2000, our highlights and achievements included: Overall, revenues for our Optical Internet solutions topped US$10 billion for the year, more than doubling 1999 revenues. We extended our #1 global market share position in long haul optical networking, according to leading industry analysts. We continued to lead the drive toward the all photonic network and the industry`s first 10 Gigabit Ethernet interfaces for long haul dense wavelength division multiplexing (DWDM). We surpassed the competition to move into the #1 global and North American market share position for DWDM metropolitan optical networking. We announced a number of customer wins based on our market leading Optera 5200 Multiservice Platform. We established ourselves as a global leader in the Wireless Internet market, ranking #2 in third generation wireless contract awards over the last 18 months according to Merrill Lynch. Key announcements were BT Cellnet in the United Kingdom, AirTel and Xfera in Spain, and T. Mobile in Germany. Our intelligent third generation core IP infrastructure -- that supports the delivery of sophisticated, high margin services for the Wireless Internet -- continued to distance us from the competition. We achieved strong growth in the Local Internet market, bolstered by significant contract wins around the globe. Our emphasis on disrupting the current metro and enterprise networking model with innovative Optical Ethernet and Personal Internet solutions attracted attention from both our enterprise and service provider customers. We established excellent momentum in core IP networking solutions and services for wireless, circuit to packet migration and IP/ATM networks for both service providers and enterprise customers and increased market share in these key growth segments. Based on the strength of our Succession* Solutions and Global Professional Services organization, we won a network and outsourcing project estimated to be worth US$1.4 billion with Cable and Wireless to effect the world`s largest network transformation to a voice over IP network." "Overall, 2000 was a tremendous year. In addition to extending our market share positions, we established ourselves as having the leading portfolio of Optical Internet, Wireless Internet and IP/ATM core networking solutions supporting the high performance Internet." Looking forward, Mr. Roth said: "We see continuing strong market demand in our target industry segments. Even with the current economic uncertainty, Nortel Networks, with our global reach and industry leading portfolio, is ideally positioned to continue to outpace the market and gain profitable market share. Our focus on high-growth markets will be balanced with optimizing profitability and driving efficiencies in our business." Commenting on financial guidance for 2001, Frank Dunn, chief financial officer, Nortel Networks said, "Considering the current economic environment and tightening of capital within the telecom sector, we are projecting growth in revenues and earnings per share from operations(b) in 2001 over 2000 of 30 percent. For the first quarter of 2001, we expect revenues of US$8.1 billion and earnings per share from operations(b) of US$0.16 on a diluted basis. Our views for the quarter and the year are within the ranges we previously communicated. We will continue to focus on optimizing profitability and driving efficiencies in our business in 2001 by eliminating redundancies, managing technology transitions, and streamlining operations and activities that are not aligned with our core markets and strategies." Revenue Breakdown Segment revenues for the fourth quarter of 2000 increased 39 percent for the Service Provider and Carrier segment and increased 16 percent for the Enterprise segment over the same period in 1999. For 2000, Service Provider and Carrier segment revenues increased 53 percent and Enterprise segment revenues increased 8 percent compared to 1999. Service Provider and Carrier segment revenues reflected strong growth in Optical Internet solutions in the United States, Europe, Canada and Asia in the quarter. Revenues from mobility solutions and core switching reflected strong growth in the quarter in the United States, Canada, Europe and Asia, more than offsetting a decline in Latin America. High Speed Local Internet revenues declined in the quarter in the United States, partially offset by growth in all other geographic regions. For 2000, revenues reflected strong growth in Optical Internet and mobility solutions in the United States, Europe and Latin America and strong growth in core switching sales in the United States, Europe, Latin America, and Asia. High Speed Local Internet sales grew in Asia, Europe and Latin America for the year more than offsetting a decline in the United States and Canada. Enterprise segment revenues grew in the quarter due to growth in revenues from eBusiness applications solutions sales and the consolidation of certain joint ventures beginning in January 2000. For 2000, overall Enterprise segment revenues grew due to the consolidation of the joint ventures. eBusiness applications solutions sales grew in the United States, Europe and Asia more than offsetting a decline in voice and data networking infrastructure solutions in the United States, for both the quarter and the year. Geographic revenues for the fourth quarter of 2000 compared to the fourth quarter of 1999 increased 39 percent in Canada, 38 percent outside the United States and Canada, and 32 percent in the United States. For 2000, revenues increased 47 percent outside the United States and Canada, 42 percent in the United States and 16 percent in Canada compared to 1999. Expenses Selling, general and administrative ("SG&A") expenses(c) in the fourth quarter of 2000 were US$1.64 billion, or 18.6 percent of revenue, compared with US$1.19 billion, or 18.1 percent of revenue, in the same period of 1999. For 2000, SG&A expenses were US$5.70 billion, or 18.8 percent of revenue, compared with US$3.95 billion, or 18.5 percent of revenue, for 1999. The increased SG&A expenses in the quarter reflected investments to support Nortel Networks global growth. Research and development ("R&D") expenses were US$1.13 billion, or 12.8 percent of revenue, in the fourth quarter of 2000, compared with US$814 million, or 12.4 percent of revenue, in the same period of 1999. For 2000, R&D expenses were US$4.01 billion, or 13.2 percent of revenue, compared with US$2.99 billion, or 14.1 percent of revenue, for 1999. The increased R&D expenses in the quarter reflected planned expenses in Optical Internet solutions, mobility solutions, high performance network architecture and eBusiness applications solutions. Nortel Networks is a global Internet and communications leader with capabilities spanning Optical, Wireless, Local Internet and eBusiness. The Company had 2000 U.S. GAAP revenues of US$30.3 billion and serves carrier, service provider and enterprise customers globally. Today, Nortel Networks is creating a high-performance Internet that is more reliable and faster than ever before. It is redefining the economics and quality of networking and the Internet, promising a new era of collaboration, communications and commerce. Visit us at www.nortelnetworks.com. Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price and product competition; the dependence on new product development; the impact of rapid technological and market change; the ability of Nortel Networks to make acquisitions and/or integrate the operations and technologies of acquired businesses in an effective manner; general industry and market conditions and growth rates; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of consolidations in the telecommunications industry, the uncertainties of the Internet; stock market volatility; the ability of Nortel Networks to recruit and retain qualified employees; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; and the impact of increased provision of customer financing by Nortel Networks. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission. Nortel Networks disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. * Nortel Networks, the Nortel Networks logo, the Globemark, OPTera and Succession are trademarks of Nortel Networks. (a) On May 1, 2000, Nortel Networks Corporation acquired all of the outstanding common shares of Nortel Networks Limited (formerly called Nortel Networks Corporation) by way of a Canadian court-approved plan of arrangement. Nortel Networks Limited has preferred shares outstanding which are publicly traded. Nortel Networks Limited`s financial results have been consolidated into the results reported for Nortel Networks Corporation. Holders of Nortel Networks Limited preferred shares will receive separate financial disclosure from Nortel Networks Limited in accordance with the requirements of applicable law. (b) Net earnings from operations applicable to common shares is defined as reported net earnings applicable to common shares before "Acquisition Related Costs" (in-process research and development expense, and the amortization of acquired technology and goodwill from all acquisitions subsequent to July 1998), stock option compensation from acquisitions and divestitures, and one-time gains and charges. (c) Excludes one time charges. Contact for Press and Analysts: Investor Relations Nortel Networks 888-901-7286 905-863-6049 investor@nortelnetworks.com Media Relations David Chamberlin Nortel Networks 972-685-4648 ddchamb@nortelnetworks.com |
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| aus der Diskussion: | Nortel |
| Autor (Datum des Eintrages): | mausito (18.01.01 23:18:06) |
| Beitrag: | 125 von 200 (ID:2727612) |
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