Citing the volume and the complexity of the work involved, Nortel Networks Ltd. has again put off the filing date for its financial statements until the end of October.
The news brought down the company’s shares by 1.79 percent to $3.83 from $3.90.
The October filing will cover the financial statements for 2003 and the first and second quarters of 2004 as well as unveil related periodic reports as soon as practicable, said the company in its bi-weekly update of its finances mandated by the Ontario securities regulators.
The company had indicated previously that the results would be released at the end of the third quarter.
“Notwithstanding the delay in the expected filing of our financial statements, we have made substantial progress to date and continue to dedicate all necessary resources and work closely with our external auditors to complete the financial statements as soon as possible in October,” said Bill Owens, president and chief executive officer of the company. “I continue to focus on driving the business forward and remain confident in the quality people, the strategy and the technologies of Nortel Networks.”
The wireless vendor announced a preliminary result Aug. 23. In an estimate of its financial performance, Nortel said its revenues for the half-year amounted to about $5.1 billion, with $2.5 billion in the first quarter and $2.6 billion in the second quarter. Net earnings were break-even to 2 cents in the first half, with break-even to 1 cent in the first quarter and break-even to 1 cent in the second quarter.
The company also slashed 3,500 positions, amounting to 10 percent of its staff. Seven executives also lost their jobs.
Nortel also said it is seeking a new waiver on its loan from the Export Development Canada in light of the filing delay. The SEC and Canadian oversight bodies as well as an internal committee are investigating the company’s finances after it overstated its profits.
