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Archive for January, 2006

Nortel’s Bond Issues

In less than a month, Nortel has $1.275-billion of debt coming due. The question being asked by analysts is how the company is going to deal with it. Nortel could issue equity but that would be extremely dilutive - 350 million shares - so that’s probably out. It could use some of its $3-billion of [...]

PEC Solutions Gets New Name

PEC Solutions, acquired by Nortel last year for $448-million, has a new name but does that change anything? In a recent research note, Morgan Stanley analyst Scott Coleman said he’s “skeptical PEC will provide Nortel with the pull-throgh it needs in the federal government space”. This isn’t a great assessment for a business that was [...]

And Today’s Newly Hired Nortel Executive is…..

Come on down Dennis Carey, you’re the newest addition to Nortel’s executive ranks. Carey has been hired as executive vice-president, corporate operations, which makes him responsible for human resources, the business transformation office, ethics, information and services, and a mysterious area called “the company’s environment”. Not surprisingly, Carey’s resume includes stints at Motorola as well [...]

Morgan Stanley Downgrades Nortel

Morgan Stanley analyst Scott Coleman has downgraded Nortel to “equal-weight/in-line” from “overweight/in-line”, and reduced his revenue and EPS forecasts for 2006. In a research note, Coleman said the downgrade was prompted by a decision to reduce revenue estimates after a “deep dive” into the Indian wireless market - where Nortel has a money-losing contract with [...]

Nortel-Juniper Marriage?

Given Juniper Networks’s struggles and a management shakeup, does a merger between Nortel and Juniper makes sense? It might make some sense given Juniper’s strength in the router market and Nortel’s strength in the optical and wireless sectors - meaning there would be little overlap between the two companies. Of course, mega-mergers are often disasters [...]

Nortel Shelves Neptune Router

TD Securities analyst Chris Umiastowski has done some digging and discovered Nortel has quietly canceled its plans for the much-vaunted “Neptune” edge router that has been in the works for several years. It was supposed to be “the next big thing” from Nortel but delays after delay made any excitement and, for that matter, customer [...]

Nortel Shares Dip Further

The fallout of the Lucent’s disappointing financial outlook last week continue have an impact on Nortel as its shares fell another 12 cents to C$3.65 in Toronto. The stock has dropped 6.7% since Lucent reduced its forecast.

Zafirovski’s Alive

Apparently, Nortel CEO Mike Zafirovski will come out of hiding next month by speaking at RBC Capital Markets annual media and technology conference in Whistler, B.C. Given how we’ve heard nothing from Zafirovski since he took the helm in mid-November, there will be plenty of interest in his presentation. Other than firing and hiring senior [...]

RBC Cautious on Nortel

RBC Capital Markets analyst Mark Sue has a cautious approach to Nortel as new CEO Mike Zafirovski works to rebuild the organization from top to bottom. Sue expects the company to have modest sales growth of only 4% to $11.6-billion this year - compared with 6% for Lucent, 10% for Ericsson and 7% for Alcatel. [...]

Lucent Struggles; Nortel Slides

Nortel shares tumbled this morning after rival Lucent Technologies said its revenue in fiscal 2006 will be flat because sales of wireless equipment will be less than stellar in the U.S. (verizon Wireless) and China. Lucent said revenue for the year ended Sept. 30 will be flat to a single-digit increase. Given wireless is Nortel’s [...]