The loss widened to $113 million, or 23 cents a share, from $37 million, or 7 cents a share, a year earlier. The latest results included $67 million in restructuring charges and a loss of $21 million, primarily from mark-to-market losses on interest rate swaps.

This is already manifesting itself in Nortel's results: orders fell to $2.15 billion in the quarter, from $2.68 billion a year earlier, impacted mostly by weaker CDMA orders in North America and lower orders from Nortel's joint-venture with South Korea's LG Electronics.

Revenue rose 2 percent to $2.62 billion from $2.56 billion, exceeding the analysts' average estimate of $2.51 billion. However, this was due in part to a deferred revenue release during the quarter.

Gross margin was 43.1 percent, Zafirovski said, adding that the weak economy is increasing the Toronto-based company's focus on cutting costs.

The company also affirmed its 2008 outlook of revenue growth at a low-single-digit percentage rate and gross margin at about the business model target of 43 percent of sales. ($1=$1.03 Canadian) (Additional rep

By: DocMemory
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