Feeds

Nortel given more time to file updated fiscals

Risks NYSE delisting if it doesn't

  • alert
  • submit to reddit

The next step in data security

Nortel Networks has been granted an additional three months to file restated financial figures. The New York Stock Exchange (NYSE) has extended a deadline for Nortel to file its 2003 annual report with the US Securities and Exchange Commission to 31 March 2005.

Any failure to meet this revised deadline will trigger the start of a delisting process by the NYSE. But the Canadian networking giant is confident of avoiding this fate. In a statement issued yesterday, Nortel said it expects to file restated financial results for 2003 and quarterly reports for 2004 from 10 January.

Nortel's financial problems kicked off last March when it emerged that its auditors had found a hole in its accounts. The networking specialist overstated costs for 2001 and 2002 resulting in inflated profits for 2003. Bonuses paid out to senior executives based on these faulty figures further exacerbated the problem. In April 2004, Nortel sacked its chief executive, Frank Dunn, its CFO and its financial controller over their role in the affair, which has become the subject of criminal investigations in Canada and probes by both US and Canadian regulators.

Nortel has been forced to restate in revenues dating back to 1999. Net earnings for 2003 are now expected to be 28 per cent lower than previously announced. Revenue reductions so far have cut Nortel's revenues for 1999 and 2000 by $430m and $2.8bn respectively. Nortel plans to shed 3250 jobs and slash expenses in order to help return its business to stability. ®

Related stories

Nortel finally readies accounts
Misery loves company. And Nortel
Nortel fires seven beancounters (and 3,500 more)
Nortel re-restates results, fires CEO
Nortel delays results

Security for virtualized datacentres

More from The Register

next story
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
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
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?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.