Nortel widened its loss in the first quarter but said the company was "on track" to meet full-year goals.
The vendor announced a $138 million net loss, or 0.28 per share for the quarter, down from 0.23 in Q1 2007.
Revenues were up 11% to $2.76 billion and operating margin was up to 4.7%, compared with -0.4% a year ago.
"We expect to achieve our full year guidance and we continue to make solid progress against the strategy to turn around the company," said CEO Mike Zafirovski.
Full-year revenue would grow in the low single digits and gross margin would be approximately 43% of revenue, the company said.
The biggest segment growth was in sales to carriers, which were 21% higher, thanks in part to completion of major projects by its joint venture with LG, while global services grew 15%.
The net loss included $88 million in restructuring charges, $19 million in currency losses and $12 million from a patent settlement.