Nortel to Exit DSL Business: Report
Nortel (NT) is planning on exiting the digital subscriber line business in order to focus on higher-growth markets, according to a published report.
A Nortel representative wasn't immediately available for comment.
The telecommunications equipment company acquired the DSL technology, which supports high-bandwidth traffic over copper phone lines, through its acquisition of Promatory Communications last year for about $778 million.According to Reuters, the company wouldn't comment on any goodwill charges or write-downs that might be associated with the discontinuation of the business line, but said staff cuts would be included in the previously announced 20,000 job reduction. Shares of Nortel lost 58 cents, or 3.7%, to $15.22 at the 4 p.m. close of New York Stock Exchange trading.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts