Nortel Networks one of the world's largest telecom equipment suppliers, reported surging sales and a smaller third-quarter loss today, as it raised its 2005 sales forecast.
Nortel, stung last year by an accounting scandal that dented demand, said it now expects fiscal 2005 revenue growth of 13 per cent over 2004, above its previous 10 per cent target.
Nortel said it had a net loss of $105 million versus a loss of $259 million in the same period last year.
Nortel added that an audit committee studying revenue restatements for 1999 and 2000 found no additional accounting errors. The review was announced in January, when Nortel restated several years of financial results to correct bookeeeping errors.
The results mark the last set of financials for outgoing chief executive Bill Owens, who led Nortel through a long-running scandal that hammered its share price, hurt demand, and fouled its reputation.
"Our results demonstrate solid progress in our next-generation businesses," said Mr Owens in a statement.
Nortel said this week that its new chief executive, Mike Zafirovski, will pay $11.5 million to settle a lawsuit with his former employer Motorola.
Mr Zafirovski, who takes over November 15th, has said his priorities include focusing Nortel's research and development spending and lifting operating margins to between 13 per cent and 19 per cent from the current industry-lagging low single digits.
Nortel shares have fallen about 9.6 per cent since the start of the year, outperforming rival Lucent Technologies , which has declined 27 per cent in the same period.