Nortel
Networks met analysts' expectations for the last quarter in 2000, but
cautioned that tightening telecom capital markets could affect projections for
2001. The telecom-equipment developer posted a 34 percent revenue hike to $8.82
billion for the quarter, compared with the year-ago period. The company posted a
$1.41 billion or 46 cents-per-share net loss for the quarter, due to acquisition
costs. Sales for the entire year jumped 42 percent to $30.28 billion and EPS
from operations also were up 42 percent to 74 cents per diluted share.
For
this year, CFO Frank Dunn says, 'Considering the current economic environment
and tightening of capital within the telecom sector, we are projecting growth in
revenue and earnings per share& in 2001 over 2000 of
30 percent.' As of 2 p.m. EST, Nortel shares rose 6.3 percent
on the New York Stock Exchange to $39 per share.
Meanwhile, wireless and
wireline Internet software developer Inktomi also managed to meet its previously
lowered expectations for the final quarter of 2000. The company posted a net
loss of $38.1 million or 31 cents per share for the period, compared with $8.81
million or 8 cents per share in losses in the same quarter of 1999.
Revenue, however, skyrocketed 123 percent to $80.5 million
for Inktomi. The company also announced plans to sell its commerce business to
e-centives Inc. The new owner will give Inktomi 19.9 percent of its outstanding
common stock, traded on the Swiss Exchange for the division.
However, Wall Street did
not reward Inktomi as it did Nortel: Inktomi's shares dropped 12.8 percent to
$15.25 by 2 p.m. EST.
Previous
Stories:
Inktomi
Predicts Lagging First Quarter Earnings 1/4/01
Inktomi
Snags Plush China Deal
11/17/00