TORONTO-In its update on the company’s financial problems, Nortel Networks Ltd. said business is gaining momentum, and it expects to report a cash balance of approximately $3.6 billion for end-June.
“I am also pleased with Nortel Networks momentum and continue to expect our revenues in 2004 to grow faster than the market (which we now expect will grow in the low- to mid-single digit),” said Bill Owens, president and chief executive officer of the company.
The company said its cash balance of about $3.6 billion at June 30 is not materially different from the figures as of March 31.
Nortel also said its previously announced net earnings for 2003 have been reduced by 50 percent.
“These amounts will largely be reported in prior periods, substantially in 2002, and together with other adjustments, will result in a reduction in previously reported net losses in those periods,” said Nortel.
It added that two-thirds of the losses affected the first half of 2003.
The company also said all its 27 class action lawsuits have been consolidated by orders from the U.S. District Court in the Southern District of New York.
The company’s financial troubles have detracted from some of its technology strides and contract wins during the past year.
