Feeds

No news is good news for Nortel

Our closet is empty

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

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

Beginner's guide to SSL certificates

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
prev story

Whitepapers

Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
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?
Protecting against web application threats using SSL
SSL encryption can protect server‐to‐server communications, client devices, cloud resources, and other endpoints in order to help prevent the risk of data loss and losing customer trust.