Nortel Fell 13% Last Week - TheStreet

Nortel

(NT)

was down about 13% for the week after the company said it would cut 3,500 jobs from its optical long haul business and it might sell its optical components unit. The network equipment maker said it doesn't see a recovery in the long-haul segment before late 2003. The company also said its second-quarter revenue would be flat to down 5% from last quarter's $2.91 billion. The long-haul realignment will result in a $600 million charge, up to $200 million of which will be cash. The company said it "has sufficient liquidity to fund these actions and its operations, and expects to be in compliance with its covenants under various bank facilities, all of which are undrawn." Nevertheless, Nortel "continues to consider opportunities to raise additional capital and may pursue an equity-based financing transaction as market conditions permit."