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Nortel Restates Delay of Restatement

Will Nortel Networks Ltd. (NYSE/Toronto: NT) give investors a trick or a treat in October?

Nortel once again had "no material developments" to report in its biweekly update required by the Ontario Securities Commission. But as usual, that doesn't mean the company had nothing to say (see Nortel Delays Filing).

Nortel revealed that the restatements it was planning to file in the third quarter of 2004 -- but had orginally been expected to come in August -- will now likely come at the end of October. These financial statements will include restated results from all of 2003, as well as the first and second quarters of 2004.

The company said the delay simply comes from the "volume and complexity" of retracing thousands of accounting entries, from several countries, spanning a period of more than a year. A spokeswoman for Nortel told Light Reading that the company has 650 people working on the restatements.

But, naturally, one shouldn't be too surprised if such a task takes longer than expected. "The Company’s expectations as to the timing of events are subject to change and are subject to a number of limitations," Nortel's press release warns.

In fact, a further delay in its restatement is what Nortel announced last month... as well as the month before.

In case you've been on a remote island or locked in a room auditing financial statements, here's what Nortel has been wrangling with during the past 60 days:

The delayed restatement news barely nicked Nortel's stock, which fell $0.04 (1.03%) to $3.86 in late afternoon trading on Thursday.

— Phil Harvey, News Editor, Light Reading


For more info on the state of industry financials, check out the coming Light Reading Live! event:

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