Many of us are patiently waiting for Nortel’s third-quarter conference call during which all will be revealed: the company’s strategic direction, whether the metro Ethernet network business has been sold, and how many employees may be losing their jobs.
It’s supposed to happen in early-November but with about three weeks to go, I haven’t seen an actual date. I know that Pavi Binning and Joel Hackney are speaking at investor conferences next month but there’s nothing on Nortel’s investor relations site to suggest when the Q3 results will be unveiled.
Nokia is 30% lower for Q3. Its doom and gloom with no sun for Nortel for sure. I wold guess it will fall below a buck quite soon.
Along for the ride
My guess is the first week of November, and they'll probably announce it a week before, just like last quarter.
joremero
what does everyone think the future holds for Nortel? Don't make an assumption that it will sell all of 4G, since that has never been clearly said by any executive, it was the interpretation from the press..
protosphere
I thought I read somewhere they will be releasing Q3 numbers on November 6th so I did a quick search again to find this:
All senior execs are busy looking for jobs. Peter Mackinnon, guy who screwed up Wimax, and UMTS is trying to jump to Motorola. Who is leading LG initative while this guy looking for job.
Tongue.In.Cheek
Let's start with a few assumptions based on what Nortel has previously stated.
- MEN will be sold - LTE R&D risk mitigation (similar to what they did with WiMAX) - Focus on Software and Services - Focus on Unified Communications
With this I think we could see a Wireless JV where Nortel products and intellectual property are contributed to the JV. This would be very similar to their current LG-Nortel JV or the Nokia Siemens Networks JV. I think that Nortel would want to hold a 51%+ share of the JV so that they can recognize the revenue with margin/profitability payouts to the JV partner. This would then see a Systems Integrator like structure while maintaining the primary face to the customers. This approach also lets them earn Services revenue for system delivery.
The challenge is the significant global economy changes we've witnessed over the past few weeks including the effective freeze of the credit markets. I highly doubt that many industry executives could have forecasted what has happened over the past few weeks.
exnt
Heard the same rumor about Peter.
protosphere
Everyone will need strong prescription caliber sedative to inhibit uncontrollable laughter after the Q3 punch lines hits the fan I suspect. Especially if rapidly declining cash comes in lower than their forecast $2.6B. Contradiction appears to be the norm than exception with this dog of a stock now run by an inexperienced management team and their follies.
I have always maintained to keep your eye on the increasingly declining cash until their printing so much Nortel paper threw me a curve ball. Whooda thunk with their powerful affiliations. Now, all the macro-ambiguities simply boil down to one basic fact that has alluded them for a decade, making money than burning it.
… if they don't sell MENs, their costs will dwindle them away faster. If they do, they will lose linear revenues and only prolong the inevitable as a smaller company yet again. Selling MENS will not generate profits than reduce burden. If they can even fire sell this too that is.
Enterprise might be growing but it has peanuts low margins, LTE is going by route of WiMax by the sounds of things, and CDMA accounts for almost all their earnings while it commenced steep decline after already losing money for a decade.
Carriers are tightening their belts in a consolidating and increasingly competitive marketplace which may be their best remaining area, leaving the best for last perhaps =)
Maybe at 1/3rd of their size yet again and restructured, I dunno… This has been a hysterical company so far, anything can happen in this fascinating saga. The trend is certainly not their friend though. Will customers go on strike all at once, will they be sold or severely restructured by Christmas, will they sell MENs, will they have the cash they say they do as Moody's warns, their woes are still exhaustive as I argued from inception the worse was not behind them.
=)
yes4aapl
1. For the third quarter alone, revenues are expected to be about $2.3 billion, lower than a Bloomberg analyst estimate of $2.66 billion, while gross margin is expected to be approximately 39 per cent of revenue question is How big loss is expected? I remember Q2 better margins and loss tripled so with 39 % gross margin only the loss could be quadrupled. So much blaming analysts for Nortel's losses, right? Those pesky analysts never happy with Nortel! Blame the messenger for delivering the message! 2. In Q2 2008 Nortel lost $111 mill on $2.62 bill in revenue. Basically if costs are projected the same but rev will be only $2.3 bill so the loss can be as high as $400 mill this time /simple math/ Is it why Nortel expects the cash level at $2.6 bill in Q3? if I remember there was more than $3 bill in cash at the end of Q2. Horror stories anyone? The company is considering selling its Metro Ethernet Networks business, which includes optical and carrier Ethernet technology, and cutting back on its 4G investments. http://www.informationweek.com/news/infr… 3. UC another blow in Nortel’s face. The Biggest Nortel’s customer has chosen CSCO for UC http://telephonyonline.com/ethernet/news/verizo… 4. Bell and Telus choosing Huawei and SI 5. Q3 CC should be very interesting. So many questions! Will we hear anything about 2009 reven. or Nortel won't even know what's what?
yes4aapl
1. For the third quarter alone, revenues are expected to be about $2.3 billion, lower than a Bloomberg analyst estimate of $2.66 billion, while gross margin is expected to be approximately 39 per cent of revenue question is How big loss is expected? I remember Q2 better margins and loss tripled so with 39 % gross margin only the loss could be quadrupled. So much blaming analysts for Nortel's losses, right? Those pesky analysts never happy with Nortel! Blame the messenger for delivering the message! 2. In Q2 2008 Nortel lost $111 mill on $2.62 bill in revenue. Basically if costs are projected the same but rev will be only $2.3 bill so the loss can be as high as $400 mill this time /simple math/ Is it why Nortel expects the cash level at $2.6 bill in Q3? if I remember there was more than $3 bill in cash at the end of Q2. Horror stories anyone? The company is considering selling its Metro Ethernet Networks business, which includes optical and carrier Ethernet technology, and cutting back on its 4G investments. http://www.informationweek.com/news/infr… 3. UC another blow in Nortel’s face. The Biggest Nortel’s customer has chosen CSCO for UC http://telephonyonline.com/ethernet/news/verizo… 4. Bell and Telus choosing Huawei and SI 5. Q3 CC should be very interesting. So many questions! Will we hear anything about 2009 reven. or Nortel won't even know what's what?
When’s the Q3 Conference Call?
Many of us are patiently waiting for Nortel’s third-quarter conference call during which all will be revealed: the company’s strategic direction, whether the metro Ethernet network business has been sold, and how many employees may be losing their jobs.
It’s supposed to happen in early-November but with about three weeks to go, I haven’t seen an actual date. I know that Pavi Binning and Joel Hackney are speaking at investor conferences next month but there’s nothing on Nortel’s investor relations site to suggest when the Q3 results will be unveiled.
Nortel?
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