More on the Radware Deal

if this makes one thing clear it is that:

1. Nortel executives had no clue of what they were buying or the value
2. Nortel executives botched how these companies got integrated
3. Nortel is extremely sharp at putting cash in a firepit and torching it
(a 6 Sigma project is begging to be started)
4. Nortel executives are lousy at strategy, vision and execution
5. Nortel executives could not divest assets smartly

We can only shudder to think what they are planning to do next with all this restructuring and how the new nortel is going to be any better or worse from this process.

I would think the latter because past performance is a sure shot indicator of future performance. Z with his math degree should be able to crunch out metrics quickly to figure this out.

I'd question Z's math background. At this point, there is enough evidence to indicate he doesn't have a clue even when it comes to math. Having in a degree in something doesn't mean you understand anything beyond book smarts. When he was first hired and interviewed by the Canadian press, I recall him saying he spent a lot of time in college focusing on relationships and playing sports. I believe this is how he met Hackney at GE as I've heard Hackney rave about Mike's leadership skills in pitching in at GE company picnics and doing the dirty work. Perhaps the only thing he is fit for at this point is a bike ride across Canada.

Bulbs made from hemp use 90% less electricity when they burn

Done..this horse is dead !
Next item for bid please !

Anyone suspect that this fire sale at a cheap rate is a warning shot to the creditors that the longer NT flounders in protection the less the company is valued. A gesture by Nortel to get the creditors to accept even less or give NT a better deal to hurry up the process. Just a thought.

The way this team has performed, it wouldn't surprise me one bit…–bb

Them lousy jockeys killed a true thoroughbred…–bb

There are 2 key things over the next 4 to 6 weeks or so that will give far more guidance as to what is likely to happen compared to what is going on right now.

Q4 Results – these should be out by mid-March I expect. A few parts of specific interest will be; Pension Deficit, Write-downs, especially in Carrier Networks Goodwill, and Revenues/Margin by business segment. Revenues will be interesting as I would think that a 25% to 30% decrease in revenues is likely in 2009. It would not surprise me to see a $2 Billion loss on non-cash write-downs to clean up the Balance Sheet for future transactions. If they retain a substantial Goodwill balance related to Carrier Networks on the Balance Sheet, then I highly doubt that Carrier Networks would be offered up for a sale transaction. Currently, both Enterprise and MEN essentially have a zero Goodwill balance.

Business Plan – This is likely to show where Nortel is headed in the future, the expected Revenues and the expenses related to R&D and SG&A. These numbers will become very important as they will be leading indicators as to the size of future staff & buildings downsizing.

I suspect that these two documents will be disclosed by late March/early April. I doubt it will define specific buyers of business segments but it could easily show intent for what they want to do.

And you still work there?

You forgot this:

“Employees, you are welcome to put in your own bids for these distressed assets. My minions have informed me that we haven't taken enough of your hard earned money yet to qualify on the Jack Welch scale of evilness”

Good point!

Hear me, O measly employees, it is I, Your Imperial Emporer Z! You are free to bid on our excess businesses. Terms are cash or your first born child, deliverable at the end of bidding. We do not accept credit for severances, pensions, old Nortel stock certificates, 25 year anniversary bowls from Birks, or any “Business Made Simple” Geegaws. That is all! I Firmly Believe!

Why would Enterprise not have goodwill when the Hackney was part of 3 acquisitions (iDEngines, Diamondware and a SIP telephony co) late last year which I would think add to goodwill on the balance sheet.

You forgot this:

“Employees, you are welcome to put in your own bids for these distressed assets. My minions have informed me that we haven't taken enough of your hard earned money yet to qualify on the Jack Welch scale of evilness”

Good point!

Hear me, O measly employees, it is I, Your Imperial Emporer Z! You are free to bid on our excess businesses. Terms are cash or your first born child, deliverable at the end of bidding. We do not accept credit for severances, pensions, old Nortel stock certificates, 25 year anniversary bowls from Birks, or any “Business Made Simple” Geegaws. That is all! I Firmly Believe!

Why would Enterprise not have goodwill when the Hackney was part of 3 acquisitions (iDEngines, Diamondware and a SIP telephony co) late last year which I would think add to goodwill on the balance sheet.