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Archive for March, 2007

Alcatel Has Option for NT’s GSM business?

According to AFX, Nortel has signed an agreement with Alcatel-Lucent giving the Paris-based company the first option to buy Nortel’s GSM assets if they’re put on the block. The deal, which last until 2008, gives Alcatel-Lucent the optoin to a buy a licence to use Nortel’s GSM and/or long-term evolution technologies for a total of [...]

UBS Lowers Target Price; Drops Revenue, EPS Estimates

After Nortel’s conference call yesterday, UBS Securities has sharply dropped its 2007/2008 revenue and EPS estimates as well as its stock target price. UBS now expects Nortel to have revenue of $11.49-billion this year and $11.81-billion in 2008 (compared with earlier targets of $12.1-billion and $12.4-billion). It expects EPS of 59 cents and $1.44, compared [...]

UBS Disappointed

UBS Securities analyst Nikos Theodosopoulos described Nortel’s Q4 results as “disappointing” based on lower than expected gross margins and pro-forma EPS. He was less than impressed with the company’s outlook for 2007 and Q1 2007, which came in lower than UBS’ estimates. Another thing that caught his eye was the size of the UMTS business, [...]

Other Analyst Views

According to the Financial Post, many analysts were less than impressed with Nortel’s Q4 and 2006 results:
“Vivek Arya at Merrill Lynch thinks Nortel’s broad-based losses in market share will make it difficult for the company to meet its long-term operating targets. In a research note, Mr. Arya, who has a “neutral” rating on Nortel shares, [...]

TD’s Take on Q4, 2007

In a research note written before Nortel’s conference call this morning, TD Newcrest analyst Chris Umiastowski said Nortel’s guidance for 2007 will likely disappoint some investors because it is below consensus. Given TD’s outlook was already below consensus, Umiastowski said TD will not be making any changes to its financial model until after the conference [...]

Pahapill: A Minor Player?

Of the four ex-Nortel executives named in the SEC’s civil fraud lawsuit earlier this week, a name that may be unfamiliar to many people is MaryAnne Pahapill, who joined Nortel in 1998 and became the company’s assistant controller a year later. In the lawsuit, the SEC alleges Pahapill was involved in the manipulation of Nortel’s [...]

What’s Ahead for NT in ‘07

The official line from Nortel is revenue in 2007 wil be “flat to slightly” due to the sale of its UMTS business to Alcatel. Gross margins will be in the low-40% range while operating margins will be at least 5% of revenue.
Some analysts, meanwhile, appear to be cautious. Earlier this week, Merrill [...]

Mike Z. in Raleigh

So, how do you change the trajectory of a great global company? Well, CEO Mike Zafirovski going to spill the beans on how it’s being done at Nortel when he makes a speech this afternoon on March 21 at N.C. State University College in Raleigh. I wonder if there will be any questions from the [...]

Frank Dunn has a Fan

While the rest of the world, especially SEC, is coming down hard on ex-Nortel CEO Frank Dunn these days, Financial Post editorialist Terry Corcoran has a different view. Based on the Ontario Securities Commission’s belief that Dunn received an undeserved bonus of only $3.5-million, Corcoran said the “effort to turn Mr. Dunn into the Jack [...]

More Questions about NT

If you’re at all intrigued by the never-ending Nortel soap opera (senior executives - CFO Peter Currie - abruptly announcing their resignations; more financial statements, a civil fraud lawsuit from the SEC, etc.), then you should wander over to J. Richard Finlay’s blog on corporate governance. In an insightful post, he highlights and questions Nortel’s [...]