Less than a week after it launched a media blitz to boost its image, Nortel Networks Ltd. postponed yet again the release of its financial statements, underlining the company’s challenges to steer out of the crisis that has taken its toll in high-level firings and a restructuring.
The company had planned to release the statements at the end of October. The company said Thursday it is targeting 30 to 60 days for the release, which may lead into next year.
“As we near the end of the restatement process, we understand it is difficult for many of our stakeholders to comprehend the scope and complexity of the task we have undertaken,” said Bill Owens, president and chief executive officer of the company. “The challenges of reviewing and verifying hundreds of thousands of documents and communications and related accounting entries over multiple fiscal periods have been monumental.”
Nortel is working to release the statements covering each of the fiscal quarters of 2003, 2002 and 2001 as well as the first and second quarters of 2004.
The company said its findings so far included a net reduction in revenue of about $600 million and $2.5 billion in 1999 and 2000 respectively. It explained that it will permanently reverse the 2000 figure by about $250 million. It, however, noted that it will enjoy a net increase in revenues of about $1.35 billion, $450 million and $450 million in 2001, 2002 and 2003 respectively.
As at Sept. 30, 2004, the company said it reported cash of about $3.4 billion.
Nortel said it had gains in its wireless business in GSM, UMTS and Voice over Internet Protocol technologies in 2004 compared with 2003.
The company has been under investigation from the Securities and Exchange Commission and is facing consolidated class-action lawsuits.
