Earnings reports

Canadian Regulator Probes Nortel

Nortel Networks Corp. (NYSE/Toronto: NT) is under investigation by the Ontario Securities Commission (OSC) following the vendor's announcement that it may need to restate past financial results (see OSC Investigates Nortel).

In March, Nortel announced that it will probably have to restate its 2003 earnings and may even need to revisit some of the financial figures already restated last November (see Nortel Rattles Nerves). News that restated figures might require further revision led to the replacement of the company's CFO (see Nortel CFO Out ).

The OSC probe is in addition to the ongoing investigation by the Securities and Exchange Commission (SEC) (see SEC Pops In on Nortel), all of which can only be making investors increasingly edgy.

News of the OSC investigation was released after the markets closed yesterday, when Nortel's share price stood at $5.87. In pre-market trading this morning the stock was down 7 cents to $5.80.

Recent events have seen the share price slump from its 12-month high of $8.50 in February this year. The 12-month low of $2.20 was recorded in April 2003.

Nortel is still due to announce its unaudited financial results for the first quarter on April 29 (see Nortel Sets Q1 Reporting Date).

— Ray Le Maistre, International Editor, Boardwatch

wilecoyote 12/5/2012 | 2:03:19 AM
re: Canadian Regulator Probes Nortel So here's a Hobson's choice for you: are the people who run Nortel really, really stupid and incompetent (I mean come on, the bubble burst what, almost four years ago and they still don't have their act together?), or are they just Lucent-like, criminals?

Why is it that two of the top five equipment companies in the world are completely screwed up and can't find their asses with both hands? It is almost comical. It would be funny if it weren't for the thousands and thousands of families whose livelihoods depend on these companies.

Unfu_king believable.
silver52 12/5/2012 | 2:03:18 AM
re: Canadian Regulator Probes Nortel Its not hard to figure out. Just look at the bonus figures for the top 30 Nortel employee's.
They received those bonus's based on a return to profit.
The BOD needs to clean house and get a real senior team.
materialgirl 12/5/2012 | 2:03:15 AM
re: Canadian Regulator Probes Nortel The behavior of LU and NT represent typical monopolistic behavior. MSFT does the same thing. Due to telecom economics, and the resultant years of "regulated monopoly" they enjoyed, their world view was to screw everybody and charge what they wanted for anything they wanted to sell.

This is how monopolists think. They do not believe they are doing anything wrong. They think they deserve to get rich selling junk becaue they are privledged. Anyone with a 2-year-old is familiar with this truly selfish line of thinking.

We need Mr. Market to kick these guys into growing up. They do need to leave their posts, as they do not know how to behave in this new era. They do not want to seem to learn, but would rather take all the money they can before they go to "spend time with family." The sooner we are rid of them, the better for investors.
RouterOttawa 12/5/2012 | 2:03:06 AM
re: Canadian Regulator Probes Nortel The Ontario Securities Commision has about as many teeth as a chicken.
H_ngm_N 12/5/2012 | 2:03:06 AM
re: Canadian Regulator Probes Nortel I think it is worth reminding everybody that this announcement was the result of an internal audit.

It looks like they ARE trying to get their house in order.

= K
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