Nortel Networks Corp., Toronto-based leading maker of telecommunications gear operating under bankruptcy protection since mid-January, recorded a loss of $2.1 billion
(all values U. S.) in the fourth quarter. It is reported to have taken massive non-cash write-downs and also suffered from a 15 per cent drop in sales.

Nortel has reported a loss of $4.28 per share included a $1.2 billion non-cash write-down of goodwill and other write-downs totaling $941 million in comparison to a loss of $844 million, or $1.70 per share, in the year earlier period.

Fourth quarter sales plunged to $2.72 billion from $3.2 billion during the same three-month period in 2007 as Nortel lost a number of its customers to recession.

"The fourth quarter revenues decreased 15 percent as the market continued to deteriorate and customers either reduced or deferred spending," stated Mike Zafirovski, Nortel's CEO.

This news comes close on the heels of Nortel's announcement last week of slashing an additional 3,200 jobs. Currently Nortel employs approximately 30,000 people worldwide, including about 6,000 in Canada.