Nortel Networks said today it was still on track for a narrower loss in the second quarter, but announced plans for 3,500 more job cuts and asset sales, including its once high-flying fibre optics unit.
The company, mired in the worldwide telecom slump, also pared its revenue forecast and cut its break-even sales target to $3.2 billion from $3.5 billion by the fourth quarter.
Nortel shares, which initially rose on the news, dipped about 0.5 per cent to $2.52 on the New York Stock Exchange.
Nortel, which sells a range of equipment for wireless, Internet and phone networks, said its second quarter net loss from continuing operations will narrow over the first quarter.
Nortel, however, wavered on its revenue estimates from its previous forecast of flat growth. Sales are now expected to be flat to down five per cent from the first quarter sales of $2.91 billion.
The company also does not forecast a recovery for the long haul fibre optics sector until late 2003 or early 2004. In response, it will shed 3,500 jobs by selling or cutting back its optical components unit, once a huge growth market that Nortel had considered spinning off into a public offering.