in the United States. In addition, Qwest, Teligent and the various Bell operating companies are also major Nortel customers.
The enterprise business segment focuses on providing communications solutions for so-called enterprise customers. Key products in this business segment include voice messaging products, call center products, virtual private network products, Internet and data networking solutions, and voice and data communications solutions for small businesses. Key customers in this business segment include businesses of all sizes, governments, educational institutions and utilities.
In 1999, revenues at Nortel increased by 26 percent to more than $22 billion (up from $17.58 billion in 1998). Profit from operations increased to $1.73 billion (or $1.28 per share) compared to $1.07 billion in 1998 ($0.93 per share). This represents an increase in earnings per share of 38 percent. Despite the increase in operational earnings, the company as a whole posted a loss for 1999 of $197 million ($0.15 per share) as a result of acquisitions and one-time charges.
In early 1999, Nortel announced that it was moving from a vertically integrated structure to a "virtually" integrated structure. The shift is critical to the company's operations in that the company formerly made or assembled most of its products and systems in-house. With the move to a virtual organization, the company will position itself as a "systems house" that will bring together the various links in the supply chain for flexible product manufacturing and delivery. This has resulted in much more outsourcing to non-Nortel manufacturing partners. The company will maintain direct control over its critical printed circuit board assemblies, most of its electromechanical subsystems, and much of its repair business (which continues to contribute to the company's revenue stream).
In January 2000, Nortel's board of directors approved a two-for-one stock split wh...