Networking vendor Nortel has seen its losses widen by a third in its results for the first quarter 2008, despite a solid increase in revenue.
For the three months to 31 March, the company reported an 11 per cent year-on-year hike in global revenue, which rose to $2.76bn (£1.41bn).
However, net loss increased 34 per cent to $138m. This was largely down to $88m in costs related to the vendor's restructuring plans, which includes 2,100 jobs that will be lost across the company and 1,000 more which are being relocated to lower cost countries.
Nortel chief executive Mike Zafirovski said: "Nortel had a strong first quarter, driven by the completion of a contract in our LG-Nortel joint venture and continued improvements in gross and operating margins. Nortel's operating margin, a critical measure of our plan's traction, expanded for the seventh consecutive quarter year over year.
"We expect to achieve our full year guidance and we continue to make solid progress against the strategy to turn around the company. Our relentless focus on execution and our determination to deliver value to customers is strengthening the foundation upon which to build our performance over the balance of 2008 and beyond."
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