LONDON -- Canadian telecommunications-equipment firm Nortel Networks on Monday said it swung to a third-quarter net loss of $3.4 billion, or $6.85 a share, compared to net income of $27 million, or 5 cents a share, earned in the year-earlier quarter. Profit in the latest quarter was hit by a $2.07 billion increase in the valuation allowance against deferred tax assets and a goodwill write-off of $1.14 billion as well as other smaller charges. Revenue fell 14% to $2.32 billion, as a result of a "challenging economic environment, competitive pressures and reduced spending by carrier customers," in particular in North America. The company also warned that its results for the year would come at the bottom of its previous guidance. It added that due to the economic downturn and currency fluctuations, results could come in lower than current expectations. In order to preserve cash, Nortel unveiled further restructuring measures expected to save $400 million annually by 2009. It plans to cut an additional 1,300 jobs and will extend its hiring freeze through 2009.


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