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.

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