XETA Comments on Nortel

Estimates that the current annualized value of its Nortel contracts is approximately $3 million

January 16, 2009

1 Min Read

BROKEN ARROW, Okla. -- XETA Technologies (Nasdaq:XETA - News) today said that it has been in touch with officials at Nortel Networks Corporation following Nortel’s Chapter 11 reorganization bankruptcy filing on January 14, 2009.

On a contractual basis, XETA provides maintenance services to large enterprise customers on behalf of Nortel. The Company estimates that the current annualized value of these contracts is approximately $3 million, which XETA will continue to support. In addition, the Company estimates that it has approximately $500,000 in accounts receivable due from Nortel that precedes the date of Nortel’s bankruptcy filing, the balance of which is current; and approximately $100,000 in January services not billed as of the date of the filing.The Company is in active conversations with Nortel regarding its ongoing contractual relationships and current accounts receivable. In its public statements, Nortel has said that it has sufficient cash on hand to fund ongoing operations and that it expects operations to continue without interruption.

Greg Forrest, CEO of XETA Technologies, said, “Nortel is an important business partner of XETA, and we stand ready to support Nortel and our Nortel customers through this process.”

XETA Technologies

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