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Nortel's sales drop 45%; cuts 20,000 more jobs
Markets & Business
Nortel's sales drop 45%; cuts 20,000 more jobs Alter already cutting 30,O00
J o h n Roth ( w h o in N o v e m b e r
jobs this }e:tr, in S e p t e m b e r
was replaced bv chief fin:racial
Nortel N e t w o r k s Corp (Bramp-
officer Frank A D u n n after in
ton. Ontari(,, Canada) cut back
April a n n o u n c i n g his intention
b ) a further 20,O00 to 45,000
to retire).
(less than half the 94,500 at the beginning (,f 2001 ).This includms I0,000 throtlgla selling off "non-core" operations (compa-
1!S$3.5bn net loss ( d o w n fronl included [1S$801 m for layoffs lind closures, 17S$223m related to a ~()% cut in manufacturing capacit) at its p h o t o n i c s comp o n e n t s business, and [!S$750m for obs()letc inventory.
USSS.Sbn (including US$gbn
net loss of $3,35bn (including
associated with Agere) on sales
US$153m for restructuring and
of US$5.2bn fi)r its fiscal Q4
[JS$2.7bn m,tinly from the
( d o w n 28% on a year ago) anti
acquisition of Ortcl Corp in
I!S$16.2bn on sales of 1!S$21.4bn for its fiscal year
US$60(lm ( d o w n 35% on the
( d o w n 26%).
Q1/2002.
June quarter):
nlanagenlcnt team (focused on
a record I rs$19.4bn in Q2).This
(Murray Hill, NJ, USA) has lost
(Allentown, PA, [ JSA) made a
sales well b e l o w US$4bn b~
its share price collapsed).
1:S$3.69bn [dox~n 45% on a
Parent Lucent Technologies Inc
September) Agere Systems Inc
April 2000). Sales w e r e
* N()rtel also has a n e w senior
) e a r ago and 20% on (.)2) and a
For its fiscal Q4 (to end-
Nortel aims to break even on
nies I~otlghI with stock heft)re
Nortel p o s t e d Q3/2001 sales of
Agere slump slows, while Lucent forecasts December-quarter upturn
three key areas). It includes: • Terry Hungle, chief financial
D e c e m b e r - q u a r t e r sales
• 1C divisiott
US$469m ( d o w n 28%);
• ()ptoelectroJtics dit,isi(m US$131m ( d o w n 53%).
should be up, said chairman and CEO Henry Schacht.
"We a r e s e e i n g e a r l y s~q,tts o f i n c r e a s e d custo-
officer (filrmcrly President,
D e c e m b e r - q u a r t e r sales should
m e r s p e n d i n g in s o m e
Finance, for Nortel Networks
be doyen by a b o u t 10%.
segmelltS."
Americas): and p r o d u c t presidents: • Fntnk Plastina, Metro Networks (formerly President, Service
JDS expects 10-15% decline in Q4
Provider and Corporate
For its fiscal Q I (to cnd-
sales of $329 ( d o w n .i5% on a
Networks);
Scpteml~er) JDS U n i p h a s e
)'car ago).
• Greg Mumford, Optical Long
Corp (San Jose, CA, VSA) made
Haul Networks (formerly
a loss of $1.2bn ( u p from
JDS e x p e c t s l)ecembcr-quarter
"We're at a bit ¢?[a trottgb i,'t
President, Optical Internct);
1.7S$972m a year ago) on
s:dcs d o w n 10-15% sequentially.
l¢'rDlS Of ItIot'hlg.[)'Olll Dat,illg
• Pascal Debon,Wirelcss
lo doll'llsize to ilOll,.[()CllS (111
N e t w o r k s (fornlerly President,
brin~illg oltr lieu' prodttt:ls
Europe,The Middle East &
out," said president and CEO
Africa), replacing Jules Mctmier.
Nokia outsources for first time Nokia is to o u t s o u r c c
Handset component orders pick up As h a n d s e t inventories h a v e
of 40m units by end-2001 so
d r o p p e d to the lowest level
they have b e g u n to p r e p a r e fi)r
seen for some time, vendors
n e w production.
have n o t e d that nlarket recovery might be seen in Q 4 / 2 0 0 1
p r o v i n c e s in tile cotmtry).
cell-phone manufactt.re
Nokia has n o w also unveiled
for the first time. Hon llai
its GPRS h a n d s e t s (joining
Precision of'laiw:m will
Motorola and Ericsson).
p r o d u c e 200,000 units p e r m o n t h in a deal w o r t h nearly
* Nokia's Q3/20(I1 sales w e r e
US$17(lm.
CT.05bn ( d o w n 7% on Q3/2000):
Most handset makers usually roll out n e w models from September
Nokia is also to invest tip to
• Nokia Networks
to February, but art- more conser-
US$12bn in n e w lktctorics
g 1.659bn ( d o w n 14%):
vative this year. But the launch of
near Beijing (Chinese o p e r a t o r
• Nokia Mobile Phones
GPRS has spurred makers to p r o
China Mobile has o r d e r e d
C5.269bn ( d o w n 3%):
tlandsct makers estimate that
pare inventories of n e w models
Nokia GPRS e q u i p m e n t to
• Nokia Ventures
inventories may d r o p to a h)w
and order components.
e x t e n d coverage to all 31
g 140m ( d o w n 33%).
and the g r o w t h rate of c o m p o n e n t sales may e x c e e d 30% in 2002.
Wireless infrastructure market to rise from US$99bn to US$120bn by 2004 Spending on infrastrtlcture sys-
M o s t n e w i n v e s t n l e n t s ill t h e
o p e r a t o r s t h a t a r e trtHtsitio,t-
t l w risk o f losDtg marleel
tems fi)r wireless nlobile com-
next five years will be aimed at
ing b e t t v e e n ge*teric
SlJcIre".
munications n e t w o r k s will
nverla) ing 2.5 and 3(; technolo-
technologies," says analyst
g r o w fi'om I JSS99. ibn in 2001
gies on top of existing cellular
Phil Marshall. "However, u,itb
Most n e w investments will
t~e [t1111lhl¢~I71 obsolest'eHce
be aimed at GSM, GPRS anti
Q f 2 G t e e h n o h ) g i e s elfin l])e
W-CI)MA fi)rmats, with an
to a peak of lrs$120.2bn in
networks.
2004, belore drifting back to
4
[ ;S$114.6bn in 2006, says a
"It is e v i d e n t t h a t it [2.5(;
promise of next-generation
increasing a m o u n t going to
report from tile Yankee Group
and 3(;I is g<;ing to be
sertffces, o p e r a t o r s
electronics (63% in 20(J5
(www.)'an keegr()up.c()111).
expettsit,e, p a r l i c t t l a r / r fi)r
a v o i d tbese costs teiIDottt
III-Vs REVIEW THE ADVANCED St MICONDUCTOR MAGAZINE VOL 14 - NO 9 " Nov/Dec 2ool
¢'HIlllOt
c o m p a r e d to 53% in 2001).
Nortel's sales drop 45%; cuts 20,000 more jobs Alter already cutting 30,O00
J o h n Roth ( w h o in N o v e m b e r
jobs this }e:tr, in S e p t e m b e r
was replaced bv chief fin:racial
Nortel N e t w o r k s Corp (Bramp-
officer Frank A D u n n after in
ton. Ontari(,, Canada) cut back
April a n n o u n c i n g his intention
b ) a further 20,O00 to 45,000
to retire).
(less than half the 94,500 at the beginning (,f 2001 ).This includms I0,000 throtlgla selling off "non-core" operations (compa-
1!S$3.5bn net loss ( d o w n fronl included [1S$801 m for layoffs lind closures, 17S$223m related to a ~()% cut in manufacturing capacit) at its p h o t o n i c s comp o n e n t s business, and [!S$750m for obs()letc inventory.
USSS.Sbn (including US$gbn
net loss of $3,35bn (including
associated with Agere) on sales
US$153m for restructuring and
of US$5.2bn fi)r its fiscal Q4
[JS$2.7bn m,tinly from the
( d o w n 28% on a year ago) anti
acquisition of Ortcl Corp in
I!S$16.2bn on sales of 1!S$21.4bn for its fiscal year
US$60(lm ( d o w n 35% on the
( d o w n 26%).
Q1/2002.
June quarter):
nlanagenlcnt team (focused on
a record I rs$19.4bn in Q2).This
(Murray Hill, NJ, USA) has lost
(Allentown, PA, [ JSA) made a
sales well b e l o w US$4bn b~
its share price collapsed).
1:S$3.69bn [dox~n 45% on a
Parent Lucent Technologies Inc
September) Agere Systems Inc
April 2000). Sales w e r e
* N()rtel also has a n e w senior
) e a r ago and 20% on (.)2) and a
For its fiscal Q4 (to end-
Nortel aims to break even on
nies I~otlghI with stock heft)re
Nortel p o s t e d Q3/2001 sales of
Agere slump slows, while Lucent forecasts December-quarter upturn
three key areas). It includes: • Terry Hungle, chief financial
D e c e m b e r - q u a r t e r sales
• 1C divisiott
US$469m ( d o w n 28%);
• ()ptoelectroJtics dit,isi(m US$131m ( d o w n 53%).
should be up, said chairman and CEO Henry Schacht.
"We a r e s e e i n g e a r l y s~q,tts o f i n c r e a s e d custo-
officer (filrmcrly President,
D e c e m b e r - q u a r t e r sales should
m e r s p e n d i n g in s o m e
Finance, for Nortel Networks
be doyen by a b o u t 10%.
segmelltS."
Americas): and p r o d u c t presidents: • Fntnk Plastina, Metro Networks (formerly President, Service
JDS expects 10-15% decline in Q4
Provider and Corporate
For its fiscal Q I (to cnd-
sales of $329 ( d o w n .i5% on a
Networks);
Scpteml~er) JDS U n i p h a s e
)'car ago).
• Greg Mumford, Optical Long
Corp (San Jose, CA, VSA) made
Haul Networks (formerly
a loss of $1.2bn ( u p from
JDS e x p e c t s l)ecembcr-quarter
"We're at a bit ¢?[a trottgb i,'t
President, Optical Internct);
1.7S$972m a year ago) on
s:dcs d o w n 10-15% sequentially.
l¢'rDlS Of ItIot'hlg.[)'Olll Dat,illg
• Pascal Debon,Wirelcss
lo doll'llsize to ilOll,.[()CllS (111
N e t w o r k s (fornlerly President,
brin~illg oltr lieu' prodttt:ls
Europe,The Middle East &
out," said president and CEO
Africa), replacing Jules Mctmier.
Nokia outsources for first time Nokia is to o u t s o u r c c
Handset component orders pick up As h a n d s e t inventories h a v e
of 40m units by end-2001 so
d r o p p e d to the lowest level
they have b e g u n to p r e p a r e fi)r
seen for some time, vendors
n e w production.
have n o t e d that nlarket recovery might be seen in Q 4 / 2 0 0 1
p r o v i n c e s in tile cotmtry).
cell-phone manufactt.re
Nokia has n o w also unveiled
for the first time. Hon llai
its GPRS h a n d s e t s (joining
Precision of'laiw:m will
Motorola and Ericsson).
p r o d u c e 200,000 units p e r m o n t h in a deal w o r t h nearly
* Nokia's Q3/20(I1 sales w e r e
US$17(lm.
CT.05bn ( d o w n 7% on Q3/2000):
Most handset makers usually roll out n e w models from September
Nokia is also to invest tip to
• Nokia Networks
to February, but art- more conser-
US$12bn in n e w lktctorics
g 1.659bn ( d o w n 14%):
vative this year. But the launch of
near Beijing (Chinese o p e r a t o r
• Nokia Mobile Phones
GPRS has spurred makers to p r o
China Mobile has o r d e r e d
C5.269bn ( d o w n 3%):
tlandsct makers estimate that
pare inventories of n e w models
Nokia GPRS e q u i p m e n t to
• Nokia Ventures
inventories may d r o p to a h)w
and order components.
e x t e n d coverage to all 31
g 140m ( d o w n 33%).
and the g r o w t h rate of c o m p o n e n t sales may e x c e e d 30% in 2002.
Wireless infrastructure market to rise from US$99bn to US$120bn by 2004 Spending on infrastrtlcture sys-
M o s t n e w i n v e s t n l e n t s ill t h e
o p e r a t o r s t h a t a r e trtHtsitio,t-
t l w risk o f losDtg marleel
tems fi)r wireless nlobile com-
next five years will be aimed at
ing b e t t v e e n ge*teric
SlJcIre".
munications n e t w o r k s will
nverla) ing 2.5 and 3(; technolo-
technologies," says analyst
g r o w fi'om I JSS99. ibn in 2001
gies on top of existing cellular
Phil Marshall. "However, u,itb
Most n e w investments will
t~e [t1111lhl¢~I71 obsolest'eHce
be aimed at GSM, GPRS anti
Q f 2 G t e e h n o h ) g i e s elfin l])e
W-CI)MA fi)rmats, with an
to a peak of lrs$120.2bn in
networks.
2004, belore drifting back to
4
[ ;S$114.6bn in 2006, says a
"It is e v i d e n t t h a t it [2.5(;
promise of next-generation
increasing a m o u n t going to
report from tile Yankee Group
and 3(;I is g<;ing to be
sertffces, o p e r a t o r s
electronics (63% in 20(J5
(www.)'an keegr()up.c()111).
expettsit,e, p a r l i c t t l a r / r fi)r
a v o i d tbese costs teiIDottt
III-Vs REVIEW THE ADVANCED St MICONDUCTOR MAGAZINE VOL 14 - NO 9 " Nov/Dec 2ool
¢'HIlllOt
c o m p a r e d to 53% in 2001).