In the week that found top executives from Alcatel Lucent departing because of another dismal quarterly performance, Nortel Networks also found itself reporting a larger Q2 loss than expected, even though it claimed it is on track to meet its targets for 2008 despite a challenging business environment.

Nortel reported a net loss of $113 million, compared to a net loss of $37 million last year. These results include restructuring charges of $67 million.

Revenue rose to $2.62 billion from $2.56 billion.

CEO Mike Zafirovski said in the second half of the year, Nortel would concentrate on execution and on delivering accelerated growth in key segments in order to hit financial targets for the year.

In June, Nortel changed tracks, saying it was shifting its R&D efforts from WiMAX to Long-Term Evolution (LTE). This move came after Clearwire and Sprint opted for other gear makers for their WiMAX network.

Earlier this week, Nortel was awarded the contract to be the official network infrastructure partner for the London 2012 Olympic and Paralympic Games. Nortel will provide an end-to-end information infrastructure for the Games.