Nortel Networks's shares soared almost 13 per cent yesterday after it beat expectations for the second quarter.

Nortel, which still faces regulatory and criminal investigations following a long-running internal investigation into accounting problems, reported net earnings of $45 million, (€36.4 million) or 1 cent a share, in the quarter ending June - up from $16 million a year ago.

Revenue rose 10 per cent to $2.86 billion from $2.59 billion. The results were boosted by strong demand for wireless network equipment from US mobile carriers in particular, and underscored the Canadian group's financial rehabilitation following the accounting scandal.

Net earnings included restructuring charges of $90 million and $39 million in costs related to the sale of businesses and assets. The figures also included adjustments related to prior periods that reduced net earnings by about $40m, or 1 cent per share.

Sales of equipment used in networks based on code-division multiple-access technology grew 17 per cent, fuelled by demand from Verizon Wireless and other mobile carriers. As a result, Nortel lifted its full-year revenue forecast and said it now expected revenues to increase 10 per cent.

Nortel's enterprise segment, which sells products to business users, also reported strong growth.

Sales grew 26 per cent to $730 million, boosted in part by the recording of some revenue that had been deferred.

The company employs 300 people in research and development in Galway and 700 in Belfast, moslty in manufacturing.

The results are Nortel's first set of strong numbers in more than 18 months since the company restated earlier results.

"We are playing not just for short-term gain but long-term value, and I believe we're on the right track," said William Owens, chief executive.