Nortel Misses Revenue Estimate

Bonuses may not be forthcoming in the executive suite this summer.
Author:
Publish date:

Nortel (NT) executives may not be getting those profit bonuses this time around.

The telecom-equipment maker Thursday posted a second-quarter $14 million net loss, citing weaker-than-expected sales.

Offering another sign of slack demand for network equipment, Nortel lost less than a penny a share on $2.3 billion in revenue. That's roughly flat with the previous quarter and a bit off the analyst consensus by Multex, which called for break-even profits on sales of $2.4 billion.

After a 3% gain during regular trading Thursday, Nortel's shares fell 7% to $2.84 in the after-market.

"Our second-quarter results reflected the continued cautious spending exhibited by our customers," said Nortel CEO Frank Dunn.

In the first quarter, Nortel declared a rather

controversial profit that entitled all employees to a one-time bonus. If the company posts four sequential quarters of profits, Dunn and several other Nortel executives are in line to share a $50 million bonus pool.

The company says it won't provide any financial projections. Executives are expected to discuss the business and results with analysts on a conference call later today.