Nortel says fourth quarter is on track

Nortel Networks Monday said it is on track to make its previously stated growth projections. Nortel said it is "very confident" that earnings per share in the fourth quarter of 2000 will be 26 cents and sales will be between $8.5 billion to $8.8 billion.

Total revenue growth in 2000 over 1999 will be in the low 40% range, Nortel President and CEO John Roth said. The company expects its optical Internet revenue to grow by more than 125% in 2000, over last year. Sales in this area should be over $10 billion, according to the company.

The company also said it expects its overall market to grow "in excess" of 20% next year. Nortel said it would grow at a faster rate, with anticipated growth in revenue and earnings per share in the 30% to 35% range.

For the first quarter of 2001 Nortel foresees earnings per share of 16 cents and revenue in the range of $8.1 billion to $8.3 billion.

Nortel's projections are in contrast with the results of a survey by the Dell'Oro Group. In a study published last week the research firm says revenue in the optical networking market declined 7% in the third quarter.

Nortel makes optical networking hardware used mainly for connections between cities. The company is extending its reach into wireless connections and optical connections within cities. The company's main markets are North America and Europe, and Asia is growing in importance.

Mid-morning trading in Nortel Tuesday pushed the value of company shares up by $1.81 to $37.06.

Nortel, in Brampton, Ontario, is at www.nortelnetworks.com/. The Dell'Oro Group, in Redwood City, Calif., is at www.delloro.com/.