Nortel’s (NT) comeback seems to have gotten off track. It lost $80 million on $3.32 billion in revenue in the fourth quarter of 2006. But, 2007 revenue will be flat to down. The company will be missing about $600 million from its high-speed wireless UMTS business which it sold to Alcatel-Lucent (ALU).
Nortel has gotten healthy, but it cannot offer the market growth.
Nortel’s stock is down 7% over the last 12 month, but it is up 15% over the last six months. The new forecast may put an end to the rise. Nortel may have proven that it can survive, but it has yet to prove that it can prosper.
Douglas A. McIntyre
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