Nortel is holding a conference call – and Webcast – today at 8 a.m. to talk about its Q4 and 2005 finnacial results. The company issued an advisory last night but did not provide details on what it was about. This seems strange because you’d figure Nortel would give investors more than 12 hours notice about the release of financials. Update: The company is delaying the release of its 2005 results and its 10-K and doing a restatement of its resuls after conducting a review of contracts last year. Here’s how CEO Mike Zafirovski explained it in a press release: “Our priority is to have accurate financial information. Although the need to restate certain financial statements is unfortunate, it’s the right thing to do. This revenue is real – it was recognized in the wrong periods. The restatements do not affect the Company’s cash position. The extensive contract review we undertook in 2005 underscores our commitment to ensure a solid foundation for this Company going forward. Though it will take time, our unwavering commitment is to be among the top companies in the world in corporate governance and business and financial controls remains.”
Wow!!!! I suspected something was up but I never thought another re-statement. So what where all the other re-statements? This is confirming a ‘The gang that couldn’t shoot straight’ type of management at Nortel.
I wonder what Owens was doing with his re-statement? Can their financials ever be trusted again? I look forward to the day when I can get back to a little more than break even on my stock and then bolt (will that day ever come?).
http://nortel.wordpress.com/ nortel
nortel described the restatement as “disappointing” but given the company’s recent track record should anyone be surprised?
Nortel Q4 Results Today
Nortel is holding a conference call – and Webcast – today at 8 a.m. to talk about its Q4 and 2005 finnacial results. The company issued an advisory last night but did not provide details on what it was about. This seems strange because you’d figure Nortel would give investors more than 12 hours notice about the release of financials.
Update: The company is delaying the release of its 2005 results and its 10-K and doing a restatement of its resuls after conducting a review of contracts last year. Here’s how CEO Mike Zafirovski explained it in a press release: “Our priority is to have accurate financial information. Although the need to restate certain financial statements is unfortunate, it’s the right thing to do. This revenue is real – it was recognized in the wrong periods. The restatements do not affect the Company’s cash position. The extensive contract review we undertook in 2005 underscores our commitment to ensure a solid foundation for this Company going forward. Though it will take time, our unwavering commitment is to be among the top companies in the world in corporate governance and business and financial controls remains.”