TORONTO-Nortel Networks Ltd. said its operating cost and gross margins for 2004 have not reached its expectation.
In its bi-weekly financial update, the embattled vendor said its operating cost is not below the targeted 40-percent mark, while its gross margins are below the targeted percentage of the mid-40s.
“I remain pleased with Nortel Networks’ market momentum and continue to expect our revenues in 2004 to grow faster than the market,” said Bill Owens, president and chief executive officer of the company.
Nortel has not unveiled its quarterly results this year, owing to investigations from the Securities and Exchange Commission and the Ontario Securities Commission into irregularities in its financial statements for 2002, 2003 and the first two quarters of this year.
