Nortel Networks Confirms Fiscal 1999 & 2000 Financial Guidance
Experiences Continuing Momentum For High-Performance Internet Capabilities BRAMPTON, ON, Jan. 6 /CNW/ - Nortel Networks* (NYSE/TSE:NT) today confirmed that it remains very comfortable with previously stated financial guidance for fiscal 1999 and 2000. Commenting specifically on the Corporation's financial guidance for 1999, the Corporation continues to anticipate revenue in the range of US$21.5 to US$22 billion and net earnings per share from operations(xx) growth in the 20% range in accordance with Canadian GAAP. For fiscal 2000, in accordance with U.S. GAAP, the Corporation continues to expect that its revenue growth will exceed the market growth rate of 14 to 15 percent by about 6 percentage points, and that net earnings per share from operations(xx) will grow faster than revenue. ``We remain extremely positive on our outlook for 2000 given the continued momentum across our high-performance Internet portfolio,'' said John Roth, president and chief executive officer, Nortel Networks. ``We expect ongoing strong demand for our optical, wireless, asynchronous transfer mode (ATM) switches, high speed access and Internet Protocol (IP) offerings. We are realizing our potential at the heart of the Internet revolution and expect our growth drivers to provide ongoing momentum. We are also pleased with the ramping of our business to meet demand for our industry leading Optical Internet portfolio.'' Nortel Networks will announce fourth quarter and full year 1999 results after the market close on January 25, 2000. Nortel Networks is a global leader in telephony, data, wireless and wireline solutions for the Internet. The Company had 1998 revenues of US$17.6 billion and serves carrier, service providers and enterprise customers globally. Today, Nortel Networks is creating a high-performance Internet that is more reliable and faster than ever before. It is redefining the economics and quality of networking and the Internet through Unified Networks* that promise a new era of collaboration, communications and commerce. Visit us at http://www.nortelnetworks.com Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price and product competition; the dependence on new product development; the impact of rapid technological and market change; the ability of Nortel Networks to integrate the operations and technologies of acquired businesses in an effective manner; general industry and market conditions and growth rates; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; unanticipated impact of Year 2000 issues; and the impact of consolidations in the telecommunications industry. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission. Nortel Networks disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. * Nortel Networks, the Nortel Networks Globemark, Unified Networks and How the world shares ideas are trademarks of Nortel Networks. (xx) Net earnings from operations applicable to common shares is defined as reported net earnings applicable to common shares before ``Acquisition Related Costs'' (the amortization of intangible assets from the acquisition of Bay Networks, Inc., and all subsequent acquisitions, and the amortization of any purchased in-process research and development from prior acquisitions) and one-time gains and charges. %SEDAR: 00000596E -30- For further information: Business Media: Jeff Ferry, (703) 712-8339, firstname.lastname@example.org; Investors: Angela McMonagle, (905) 863-6044, email@example.com; Archived images on this organization are available through CNW E-Pix at www.newswire.ca. Images are free to members of The Canadian Press.
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