Nortel Networks, the Canadian telecommunications equipment maker operating under bankruptcy protection, reported better than expected second quarter results on Monday as the company moves ahead with the sale of its assets. The company also confirmed Mike Zafirovski would step down as chief executive.

Nortel, once a Canadian technology icon, filed for Chapter 11 protection in mid-January after the global recession derailed Mr Zafirovski’s plans to restructure the business and refocus it on new growth opportunities.