Jan 10 Is Nortel's F-Day

Nortel Networks Ltd. (NYSE/Toronto: NT) gave its investors an early Christmas present this morning, saying it would start filing its 2003, 2002, and 2001 restatements on January 10, 2005.

The company had stated on November 11 that it was "targeting a filing date within 30 to 60 days" for its audited 2003 financials and unaudited statements for the first two quarters of 2004.

January 10 is exactly 60 days after November 11 (see Nortel: We Can Hit a Deadline!).

In pre-market trading the vendor's share price leapt 16 cents, nearly 5 percent, to $3.89 from Tuesday's closing price of $3.73.

Nortel said it expects to unveil "limited, estimated unaudited results for 2001, 2002, 2003 and the third quarter of 2004" some time next week. It will also update the previously estimated and unaudited numbers for the first two quarters of 2004.

The vendor has revised previously estimated revenue adjustments for 2001 through to 2003.

  • 2003: Annual revenues will be $460 million (5 percent) higher, instead of $450 million (5 percent) higher.
  • 2002: Revenues will be $265 million (3 percent) higher, instead of $450 million (4 percent) higher.
  • 2001: Revenues will be $1.5 billion (9 percent) higher, instead of $1.35 billion (8 percent) higher.
Nortel has also altered its net income adjustment for 2003, which will now be 28 percent lower instead of 35 percent lower. About 18 percent of those net income reductions are related to current operations. Previously that figure was 30 percent.

The company notes that these figures are all still subject to change.

Nortel is desperate to put its annus horribilis to bed, as its 2004 business activities have been overshadowed by its seemingly endless accounting imbroglio (see Nortel: Financial Stuff Really Complex, Nortel: No Delisting Actions Yet, Nortel Details Layoff Plans, and Problems Mount-y Up for Nortel).

— Ray Le Maistre, International News Editor, Light Reading

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