Nortel back in the black

Canadian vendor Nortel Networks swung back into profitability during the second quarter, recording net earnings of $366m (£194m) compared to a loss of $167m in the year ago period.

Revenues also increased from $2.38m a year ago to $2.74m in 2005.

Net earnings during the quarter included a shareholder litigation recovery of $510m, reflecting a mark-to-market adjustment of the share portion of the global class action settlement, special charges of $45m for restructuring and a loss of $10mn on the sale of assets.

Mobility and Converged Core Networks revenues topped $1.59bn, up 7 per cent compared with the year-ago quarter, while Enterprise Solutions and Packet Networks revenues hit $1.07bn, a decrease of 1 per cent compared with the year-ago quarter.