Nortel Files Q3 Results

 (US GAAP; millions of U.S. dollars, except per share amounts) 

 Three months ended September 30 

 Nine months ended September 30 

2004

2003

2004

2003

As restated

As restated

Revenues

$2,179

$2,344

$7,213

$6,927

Cost of revenues

1,393

1,214

4,319

4,020

Gross profit

786

1,130

2,894

2,907

Selling, general and administrative

512

527

1,596

1,458

Research and development

501

455

1,465

1,440

Amortization of acquired technology and other

2

32

7

98

Deferred stock option compensation

-

1

-

16

Special charges

93

80

99

198

(Gain) loss on sale of businesses and assets

(39)

(17)

(114)

(6)

Operating earnings (loss)

(283)

52

(159)

(297)

Other income (expense) � net interest

44

148

112

302

Long-term debt

(45)

(45)

(132)

(136)

Other

(3)

(8)

(18)

(22)

Earnings (loss) from continuing operations before income taxes, minority interests and equity in net loss of associated companies

(287)

147

(197)

(153)

Income tax benefit (expense)

30

(36)

32

4

(257)

111

(165)

(149)

Minority interests - net of tax

(7)

(10)

(29)

(52)

Equity in net loss of associated companies - net of tax

-

(13)

(2)

(38)

Net earnings (loss) from continuing operations

(264)

88

(196)

(239)

Net earnings (loss) from discontinued operations - net of tax

5

43

12

157

Net earnings (loss) before cumulative effect of accounting change

(259)

131

(184)

(82)

Cumulative effect of accounting change - net of tax

-

-

-

(12)

Net earnings (loss)

$(259)

$131

$(184)

$(94)

Basic earnings (loss) per common share

- from continuing operations

$(0.06)

$0.02

$(0.04)

$(0.06)

- from discontinued operations

0.00

0.01

0.00

0.04

Basic earnings (loss) per common share

$(0.06)

$0.03

$(0.04)

$(0.02)

Diluted earnings (loss) per common share

-from continuing operations

$(0.06)

$0.02

$(0.04)

$(0.06)

-from discontinued operations

0.00

0.01

0.00

0.04

Diluted earnings (loss) per common share

$(0.06)

$0.03

$(0.04)

$(0.02)