Feeds

Nortel confirms fire sale

And shrinking revenues

Choosing a cloud hosting partner with confidence

Nortel is well-advanced in the process of splitting itself into self-supporting business units which could be sold off separately, if the firm cannot find a buyer for its whole business.

The 100-year old Canadian communications company went into Chapter 11 bankruptcy protection in January.

Since then it has split its business into four divisions - Carrier Networks, Metro Ethernet Networks, Enterprise Solutions and the LG-Nortel joint-venture which makes VOIP phones. From now on Nortel will report revenue according to these four business units.

First quarter revenues at Nortel fell 37 per cent to $1.73bn and the company made a loss of $244m in the first three months of 2009.

Mike Zafirovski, Nortel's president and CEO said: "First quarter results showed a decline in revenue and margins as expected due to the severe economic downturn and our filings for creditor protection. However, despite the declines we saw this quarter, revenue has stabilized and our cash balance is stable from year-end 2008."

Zafirovski said the firm was concentrating on getting most value for shareholders and creditors. He said: "These are the key considerations in our decision-making process, and work is well underway to evaluate the ultimate path forward for our businesses. Discussions are taking place with various external parties. However, decisions have not been taken and we continue to evaluate our restructuring alternatives. To provide maximum flexibility we are also taking the appropriate steps to complete the move to standalone businesses."

Nortel had $2.48bn in cash on 31 March 2009 compared to $2.4bn at the end of 2008.

Nortel is expanding its shared services organisation to improve support to its standalone business units.

In other news 229 ex-Nortel employees are taking action this week to highlight what they believe were illegal redundancies earlier this year.

Staff were laid off in January and received no redundancy pay or notice period. The ex-workers will lobby Parliament today and tomorrow and will also demonstrate outside Ernst and Young's offices in London - E&Y are Nortel's administrators. Staff note that Ernst and Young allowed $23m in bonus payments to senior Nortel execs at the same time as approving UK redundancies.®

Intelligent flash storage arrays

More from The Register

next story
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
729 teraflops, 71,000-core Super cost just US$5,500 to build
Cloud doubters, this isn't going to be your best day
Want to STUFF Facebook with blatant ADVERTISING? Fine! But you must PAY
Pony up or push off, Zuck tells social marketeers
Oi, Europe! Tell US feds to GTFO of our servers, say Microsoft and pals
By writing a really angry letter about how it's harming our cloud business, ta
SAVE ME, NASA system builder, from my DEAD WORKSTATION
Anal-retentive hardware nerd in paws-on workstation crisis
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
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?
The hidden costs of self-signed SSL certificates
Exploring the true TCO for self-signed SSL certificates, including a side-by-side comparison of a self-signed architecture versus working with a third-party SSL vendor.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.