Toronto, Canada-based Nortel has reached the goal all its rivals are striving for and has brought costs in line with current levels of demand. Spending cuts by its customers have been savage with optical networks revenue down 33% in the quarter, wireline revenue showing an 18% fall, and while wireless networks operations are enjoying growth, frugal spending left Nortel with 6% lower sales.
Like its competitors, Nortel was taken aback by the scale of market decline. In July 2002, it talked of a breakeven target of $3.2bn and a month later revised it to $2.6bn. By October the figure was down to $2.4bn.
Source: Computerwire
