 Optical NetworkingThis newsletter is sponsored by GatewayNetwork World's Optical Networking Newsletter, 08/06/07Nortel shops while its management turns overBy Jim DuffyNortel has begun discussions with potential takeover targets, according to a Reuters report citing an interview with CEO Mike Zafirovski. Nortel is looking to acquire companies to expand its reach in key markets, such as the enterprise, VoIP and IPTV. One such target is believed to be 3Com, and others mentioned include Foundry Networks, Tellabs and Sonus Networks. "We are doing lots of analysis internally on how to grow the company organically and we started discussions recently with companies that we believe can be adding to our growth trajectory," Zafirovski said in an interview, according to the Reuters article. "We're confident that we'll be able to successfully integrate other activities if the pricing is appropriate," he said.
Zafirovski provided few details on the size or scope of any acquisitions that the company might be pursuing, Reuters reported. Nortel just released second-quarter financials, which fell short of consensus analyst estimates. Its second-quarter revenue of $2.562 billion was down 8% from a year ago, and earnings, excluding charges and other expenses, were $0.07 per share Analysts expected the company to post $2.745 billion in revenue for the quarter and earnings of $0.08 per share. Nortel also this week announced the departure of Dion Joannou, president of the company’s North American operations, effective Aug. 31. Joannou is leaving to pursue other personal interests, Nortel said. Nortel lost its CFO in April and its Chief Ethics Officer in December 2006, and replaced its President of Caribbean and Latin American operations in June. “We believe these departures continue to signal ongoing organizational flux, not a particularly encouraging sign at this stage in the company's transformation,” states UBS Warburg analyst Nikos Theodosopoulos in a report on Nortel’s second quarter.
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| Contact the author: Jim Duffy is managing editor of Network World's service provider equipment coverage. He has 18 years of high-tech reporting experience, including over 12 years at Network World. Previously, he was senior editor at Computer Systems News and associate editor/reporter at Electronic News and MIS Week. He can be reached at jduffy@nww.com. This newsletter is sponsored by GatewayARCHIVEArchive of the Optical Networking Newsletter. BONUS FEATUREIT PRODUCT RESEARCH AT YOUR FINGERTIPS Get detailed information on thousands of products, conduct side-by-side comparisons and read product test and review results with Network World’s IT Buyer’s Guides. Find the best solution faster than ever with over 100 distinct categories across the security, storage, management, wireless, infrastructure and convergence markets. Click here for details. PRINT SUBSCRIPTIONS AVAILABLE International subscribers, click here. SUBSCRIPTION SERVICESTo subscribe or unsubscribe to any Network World newsletter, change your e-mail address or contact us, click here. This message was sent to: networking.world@gmail.com. Please use this address when modifying your subscription. Advertising information: Write to Associate Publisher Online Susan Cardoza Network World, Inc., 118 Turnpike Road, Southborough, MA 01772 Copyright Network World, Inc., 2007 |
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