Nortel reported a loss of $138 million, or 28 cents a share, compared with a loss of $103 million, or 23 cents a share, a year earlier.

The latest results included a number of one-time items, including special charges of $88 million for restructuring, a charge of $12 million related to a patent lawsuit settlement, and a loss of $19 million due to changes in foreign exchange rates.

Revenue was $2.76 billion, up 11.1 percent. The boost included a release of deferred revenue related to the completion of a big contract in Nortel's joint venture with LG Electronics that was previously expected to happen in the second quarter, the company said.

Demand for wireless technology products that Nortel makes has been tepid as carriers have remained reluctant to spend big on large-scale upgrades or expansions for now.

Despite the loss in the quarter, Nortel said it was pleased with the results and expects to achieve its full-year forecasts. These include revenue growth in the low single digits, gross margin of about 43 percent of revenue, and operating margin as a percentage of revenue to increase by about 300 basis points.

The 2007 quarter included special charges of $80 million for restructuring.

By: DocMemory
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