As Nortel drives to slash operating costs, it is creating a product design, development and testing centure in Bangalore, India that will employ 100 engineers by the end of the year. The team will work on Ethernet switching, security and VoIP. About 70 of these engineeers will come from Tasman Networks, which Nortel acquired for $99-million last year. Nortel already does some product development work in India through Infosys Technologies, Wipro and Tata Consultancy Services. Nortel also has a minority stake in Bangalore-based Sasken Communications, which provides software services to Nortel customers.
Didn’t they get criticized for spending a premium on PEC to increase revenue with declining earnings/profits since 2002 for $448M? Not unlike selling last of assets or taking on money losing BSNL to appear like revenues are being generated.
They also wasted 20 billion in bubble acquisitions that made exponentially greater sense only to become worth mere millions so shortly thereafter. How this money would have come in handy with their declining cash of under 2 billion now and tanking with poor outlook and printing multiply more paper in B3 bonds and shares/diluting to pay.
These guys never seen money in the good days let alone now and have more woes than when trading at 45 cents with fines, charges, reverse splits, losing marketshare, etc., No one wanted to merge or buy it then, why now at a 2 bucks premium thanks to the tenacious residue of bagholders from one of the world’s largest frauds since they are still allowed to trade. Enron or Worldcom should have been so lucky. Heh, only in Canada eh? They still were forced to expose overstating, worst everytime they count, to boot as they keep fraud bonuses even after drmatic revisions, a whopping 5 billion of them breaking us into 3.5 billion initially and another 1.5 billion recently… get this, they extended repairing controls from over 18 months they said well over a year ago to years out, 2008 when they have another $1.8B debt to address…
What are these “hard to find” finanglers still there doing?! Even BSNL is losing so much more now and BSNL and admitted the money losing order was considered in exchange for jobs in India. So much for honouring 50% more of the contract any more than the MOT agreement. This BSNL order NT set the specs against a competitor they wanted to later partner with (Huawei) requiring 10 years international experience. Competitors who’s partnerships went as well as failed Putian, Neptune, BT, Telstra, Verizon, etc., as they try and feed us old news like MSFT voice product, Tasman, or TV in their struggles. Don’t they get it yet, no one wants anything to do with this now disgraced and once giant with too much attention on past sentiment.
Now, they pay 99 million bucks for what?! Tasman? To compete in a market some one owns 90% lions-share not marketshare?! To claim they are nuttier than a fruitcake is an understatement in ALL of the actions they take as though they are literally jinxed. Perhaps the larger the company the greater the error factor, perhaps they are fighting against a losing tide, I don’t know… but they sure are not winning nor is it getting better with time…
Who pays $99M for this expensive advertising to be seen doing something/anything in desperation:
Tasman:
”
Still, after nearly a decade in business, the company manages to make less than $10 million in sales per annum — Hoovers puts the amount at $7.8 million. At the advertised price, therefore, Nortel looks to be paying a whopping 12.8 times sales to acquire Tasman’s technology. ”
(rule of thumb I thought would be 3X earnings/profits not 12X revenue/sales! wowzers!)
PLUS!!!
according to Light Reading, “the deal isn’t a “home run” given Tasman raised $90 million in venture capital and went through several make-overs.”
Anonymous
Dear Mark E
you’ll have to put Nortanic on ignore, unless your up to the daunting task of answering to his never ending slandering of Nortel.
you see he is a problem poster who uses multiple ID’s over on the yahoo mb, I guess he’s found new venue here to unleash his negativity.
Nortanic
What slander? The facts above are substantiated. What do you disagree with?
May I suggest you are stalking with a vested interest.
We have exposed you many times in Yahoo too. All one has to do is read yahoo NT financial forum to see.
I have already pointed out how you have tried to supress opposing views unethically on Yahoo by “flooding their inbox” with totalitarian compalints because truthful posts by critics burst your your vested interest.
All Mark has to do is read your posts and mine on Yahoo to see your tactics, profanity and unbelievable actions and what deserves attention here.
Never mind your misleading politeness above with this “dear Mark” patronizing… You are constantly exposed on yahoo too. Mark isn’t stupid so don’t be surprised if he bans your IP from posting here instead, as others supoena Yahoo for it judging by reader feedback.
Here is what this Nortel pumper posts (working in telecom located in Texas under the ID “mindgallery” ) on Yahoo, all the way down from a multiple of its value trying to cost readers money, while flooding yahoo to remove critics.
”
Re: LOL…RTQ $4.07…EOM
by: mindgallery (33/M/TX) Long-Term Sentiment: Strong Buy 08/19/04 09:13 am Msg: 567056 of 645443
Dude, I was telling everyone to buy @ $6.00 and above.
And we will be there again soon and higher.
”
”
Re: What really is starting to show…..
by: mindgallery (33/M/TX) Long-Term Sentiment: Strong Buy 07/06/04 12:09 am
Msg: 544181 of 698797
I lost a lot of paper gains from the recent $8.00+ high…but I’m still here. Never sold and bought back in- in fact I’ve only added to my position on teh dips. But, I’m smart enough to know where we’re headed
”
” Re: Loss reported as a gain to fool in (Not rated) 4-Aug-06 12:55 am
Hey jamezzz-
How come it is when I click on your posts from your original ID, then click on your name to see your profile, it now comes up with a 404 error?
Guess yahoo decided you were full of shit after I flooded their inbox with reports of your false and misleading statements of 20 year lows?
Guess that would explain the new ID, eh???
ROTFLMFAO…
MG
”
This is the multi-Id “mindgallery” that would make anyone civil nauseous.
Just read yahoo to see the truth for yourself, he found this blog site through another good ethical poster yes4aapi who mensioned it.
“Mindgallery” spends hours flooding Yahoo with complaints and many IDs/IPs. He looks to discredit critics by stalking them and flooding Yahoo to ban them then boasts his arduous achievements. A nortel pumper calling facts slander as he has many issues.
Nortel Setting Up Shop in India
As Nortel drives to slash operating costs, it is creating a product design, development and testing centure in Bangalore, India that will employ 100 engineers by the end of the year. The team will work on Ethernet switching, security and VoIP. About 70 of these engineeers will come from Tasman Networks, which Nortel acquired for $99-million last year. Nortel already does some product development work in India through Infosys Technologies, Wipro and Tata Consultancy Services. Nortel also has a minority stake in Bangalore-based Sasken Communications, which provides software services to Nortel customers.