Nortel Networks Not Sounding Good

Tags: nt
4 Dec 10:57pm
Posted by ZacksResearch
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Nortel Networks Corporation (NT), a leading developer of telecom equipment, is facing severe business challenges as a result of the global economic slowdown, increasing competition, and reduced capital spending on the part of several of its major customers.

Nortel's third quarter 2008 financial results were significantly below our expectations. Revenue from all four business segments decreased year-over-year with further declines expected over upcoming reporting periods. In addition, increasing cash burn rate and a highly leveraged balance sheet remain concerning.

We do not find any near-term growth catalyst for the company and downgrade our rating to Sell, based on the company's debt level, disappointing financial expectations, and general economic weakness that may impede near-term improvements.

Read the full analyst report on NT




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