Nortel Networks Corporation’s shares fell 17 percent to 25 cents on Monday, after the Toronto-based company reported wider loss, owing to the global economic meltdown.

Already seething under the bankruptcy protection, the Canadian gear maker said it lost $507 million or $1.02 a share in the first quarter ended March 31, in contrast to a loss of $138 million, or 28 cents a share, a year earlier.

Revenue fell 37 percent to $1.73 billion with declines in all segments and regions, failing to meet the analyst forecast of $2.32 billion.

Revenues from carrier networks business fell to $ 737 million as compared to $1.089 billion a year ago. LG-Nortel reported the greatest decline as revenues slid to $ 188 million as compared to $ 546 million last year.

Region wise revenues from Asian market dropped by about 50 % to $ 366 million as compared to $ 787 million reported a year back.

Blaming the weak economy and its bankruptcy filing, the company said these elements put off the confidence of some customers.

Also in an interview, Chief Executive Mike Zafirovski said that revenue stabilized after January and picked up in February and March.

Following the filing of bankruptcy protection in January 09, media reports hinted on the sale of Nortel in units as better option than reviving it as a stand-alone unit.

Speculations of Nortel rivals, including Nokia Siemens Networks having proposed to acquire key parts of its business brewed up.

However, Zafirovski on Monday openly accepted that Nortel has held talks with companies concerning asset sales.

The company said it is carrying out plans to decentralize some functions at each of its four main businesses to give it more flexibility as it settles down on units that it could sell.

In a move to stand back afoot, Zafirovski said the company is sacking at least 5,000 workers, about 15 percent of the staffs.

Earlier in April, Nortel won a three-month extension for the bankruptcy protection and has timeline till July 30 to work out a recovery strategy.