Feeds

No news is good news for Nortel

Our closet is empty

  • alert
  • submit to reddit

Protecting users from Firesheep and other Sidejacking attacks with SSL

Nortel Networks shares jumped 13 per cent yesterday on news that there was no more bad news from the company. Nortel, which is under investigation by Canadian and US securities regulators, has to update the Ontario Securities Commission every two weeks.

Analysts reacted with joy to news that the networking equipment maker had no more bad news to report. The company is the midst of restating financial results for 2003.

The statement said: "There have been no material developments in the matters reported in their status updates of June 2 and June 29 2004 with the exception of the matters described below."

Accountants believe net earnings for 2003 will be 50 per cent lower than previously reported, but warned that investigatons are continuing. Nortel hopes to announce prelimary unaudited results for the first and second quarters of 2004 by mid-August. It expects to file results for 2003 in the third quarter of 2004.

Bill Owens, president and CEO of Nortel, said he was pleased with the progress the company is making in sorting out its accounts and with its sales. He predicted the company would outperform the market, which he expects to grow in low to mid-single digits.

But it has "become clear that we will need to put into place an improved cost structure to drive financial performance", he said.

Last month, the firm announced the sale of its manufacturing operations to Flextronics for between $675m and $725m. It aims to save $100m a year through the deal. But after this, what needs to be done? Sounds like more job cuts could be on the way. ®

Related stories

Nortel flogs factories to Flextronics
No news is bad news for Nortel
Nortel re-restates results, fires CEO
Nortel suspends finance chiefs

Choosing a cloud hosting partner with confidence

More from The Register

next story
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.