Feeds

Nortel CEO says g'bye as revenues rise

Wanna run a dying telecom hardware biz?

High performance access to file storage

Last week, Nortel president and CEO Mike Zafirovski said he would leave the embattled Canadian telecom equipment maker, and today, he made good on his promise, just as Nortel announced second-quarter financial results that were - although still feeble - better than expected.

As The Reg reported earlier today, Zafirovski told the Ottawa Citizen that he would "walk out with my head held high." There's no independent confirmation of the exact angle of his departing noggin, but his exit wasn't a lonely one. Six of Nortel's nine-member board of directors joined him in his walk out the door.

The board restructuring came as Nortel announced a drop in revenue to $1.97bn for the second quarter of 2009, down from $2.62bn for the same quarter of last year - a dip of 25 per cent.

That drop surprised no one. What did come as a pleasant surprise to the few investors who have hung with Nortel during its bankruptcy was that revenues were up 14 per cent since the first quarter of 2009.

That good news, however, wasn't bright enough to move the company's sagging stock. Its value was unchanged in over-the-counter trading this morning, still mired at a five cents per share.

With the departure of Zafirovski and two-thirds of the board, the company's still-surviving business units will report to Nortel's chief restructuring officer, Pavi Binning.

When a company's top executive has the title of "chief restructuring officer," it's clear what direction it's headed. Still, Zafirovski says the $1.13bn sale of its CDMA/LTE arm to Ericsson is still on track. The deal, he said, will preserve 80 per cent of the jobs associated with its wireless carrier business.

Zafirovski joined Nortel in 2005 as the company was still laboring to dig itself out from an accounting scandal that broke in March of 2004. Fresh from his success at Motorola, where he helped pull that then-struggling company out the ditch with such game-changing products as the wildly popular RAZR phone, it at first appeared that he might work magic at Nortel too.

But it wasn't to be. The 114-year-old company was never able to fully right itself, and after being battered by the global financial Meltdown, it filed for bankruptcy this January. It is now, as the Ericsson sale indicates, attempting to negotiate a smooth divestiture of its assets.

Although the company issued a statement today that a search is underway for a new CEO, it's difficult to understand what might attract a top-level performer to take on the job. ®

High performance access to file storage

More from The Register

next story
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
Broadband Secretary of SHEEP sensationally quits Cabinet
Maria Miller finally resigns over expenses row
Skype pimps pro-level broadcast service
Playing Cat and Mouse with the media
Beat it, freetards! Dyn to shut down no-cost dynamic DNS next month
... but don't worry, charter members, you're still in 'for life'
Like Google, Comcast might roll its own mobile voice network
Says anything's possible if regulators approve merger with Time Warner
EE dismisses DATA-BURNING glitch with Orange Mail app
Bug quietly slurps PAYG credit - yet EE denies it exists
Turnbull leaves Australia's broadband blackspots in the dark
New Statement of Expectations to NBN Co offers get-out clauses for blackspot builds
Facebook claims 100 MEEELLION active users in India
Who needs China when you've got the next billion in your sights?
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.