CEO Jack Dorsey takes to Twitter -- where else? -- to bid farewell to four department heads as he attempts to turn the company around.
Telecom equipment maker Nortel Networks announced Wednesday that it plans to raise about $1 billion through a bond offering of senior notes. Bondholders will be able to convert the bonds into shares in Nortel. The Canada-based company announced that it ended the second quarter with about $5 billion in cash on its balance sheet and posted a loss from continuing operations of $1.55 billion on revenue of $4.61 billion for the quarter. Nortel announced last June that it secured $2 billion worth of potential loans through the investment banks J.P. Morgan and Credit Suisse First Boston as well as through other financial institutions. Nortel also announced in February a $1.5 billion bond offering that would mature in 2006 underwritten by J.P. Morgan and Salomon Smith Barney. That same month, the company bought an optical component plant in Zurich, Switzerland, from JDS Uniphase for about $3 billion in stock.
Nortel Networks announced Sunday that it has signed a $250 million deal to sell wireless equipment to a carrier in Taiwan. Chunghwa Telecom agreed to buy an assortment of gear that includes wireless infrastructure equipment that will expand its GSM network to 6.5 million subscribers and enable the carrier to offer wireless Internet services. Nortel announced a similar $250 million deal in September of last year that would expand Chunghwa Telecom's GSM network. The telecom equipment giant has also signed a number of wireless contracts in the Asia-Pacific region, including two deals with China Unicom of the People's Republic of China. Nortel closed a deal in June worth $270 million for wireless equipment in several provinces, and signed a $275 million agreement in May for CDMA (code division multiple access) equipment. In the second quarter, Nortel reported a net loss from continuing operations of $1.55 billion, or 48 cents a share, compared with net earnings of $637 million, or 21 cents a share on a diluted basis, for the same period in 2000.
Overall U.S. sales of computer and video game software were down slightly in 2000, according to a report by the Interactive Digital Software Association. It was the first decline since the group began tracking sales figures in 1995. Sales were $6.02 billion last year, down from $6.1 billion in 1999. Console game software accounted for $4.1 billion of the 2000 total; computer games contributed $1.55 billion; and "edutainment" software came in at $365 million. Video game rentals, which aren't included in the overall figure, were tallied at $919 million, up from $880 million in 1999.
Online music retailer N2K reported revenue of $7 million for the March quarter, up from $1.1 million reported for first quarter of 1997. Net loss was $13.7 million ($1.13 a share), compared with a loss of $4.5 million ($1.55 a share) a year ago. Page views increased to 80 million from 49 million in the previous quarter. The company's international expansion continued via an exclusive relationship with AOL Europe.