TORONTO-Nortel Networks Ltd. has warned that its third-quarter revenue will fall short of its previously announced figures for the second quarter, adding the overall market performance will surpass the company’s performance.
The vendor said its 2004 revenue will only enjoy “mid-single digits” growth over that of 2003. This contradicts its earlier guidance, which expected the company to outpace the industry.
“As we work through this challenging transition period, completing our restatement activity and implementing the new strategic plan for the company, I am confident that Nortel Networks will be positioned to compete strongly in all of our markets with the right products and services as we move into 2005,” said Bill Owens, president and chief executive officer at Nortel Networks.
The company announced second-quarter revenue of $2.6 billion. In August, it announced job cuts of 3,500 workers, amounting to 10 percent of its staff. Since it announced discrepancies in its finances, the company has attracted up to 27 class-action lawsuits alleging the company and some of its principal officers violated U.S securities laws. The lawsuits have now been consolidated in the Southern District of New York.
