Nortel Networks already has been through the financial wringer over the past six years. It appears that times are not getting any better for the beleaguered company, particularly after an analyst warned the company could be facing liquidity issues.
UBS analyst Nikos Theodosopoulos said that the network equipment supplier will likely have to initiate more drastic restructuring efforts to sustain itself through the financial crisis and could encounter problems selling its metro Ethernet networks business.
Last month, Nortel hinted it would sell the unit, which accounts for roughly 14% of its revenue. It also said it planned additional layoffs and projected lower revenue forecasts.
Although the metro Ethernet business is an active category for telecom operators, the global economic slowdown will likely slow revenues from that market as well.