Nortel Networks' chief executive Mike Zafirovski, who yesterday
announced he is to step down, says the company has stabilised
since filing for creditor protection.
He was speaking after the beleaguered Candian telecoms equipment
company reported better-than-expected second quarter financial
results
Nortel
filed for bankruptcy protection in Canada and the US in January
and has since started selling off key parts of the business to
cover debts.
Zafirovski said Nortel's results demonstrate solid financial
performance over the first quarter and customer metrics remain
strong, according to the
Financial Times.
The second-quarter revenues of $1.97bn represent a drop of 25%
compared with the same period a year ago, but an increase of 14%
from the previous quarter.
Nortel also reported that it had increased its cash balances to
$2.56bn at the end of June, compared with $2.48bn at the end of the
previous quarter.
Zafirovski, who said there was no need to stay as the company
shrinks with the sale of assets, is expected to leave Nortel within
weeks.
The Nortel board said Zafirovski has fulfilled his commitment to
see the company through its stabilisation and sale of its largest
assets.
Earlier this month, Nortel
won court approval for a $1.1bn deal with Ericsson.
The Swedish company outbid Nokia Siemens and MatlinPatterson in
an auction for Nortel's core wireless assets, which was also held
in New York.
Next month, US business communications group Avaya is expected
to put in a $475m bid for Nortel's networking business.