Meh: Nortel Posts Q3 Results

Totally OT, G's ---- but, then, maybe not. Rock band Aerosmith's lead singer Steven Tyler seems to have left the band.

Earlier this month, Tyler revealed he wanted to take a break from the band.The back-and-forth climaxed last week when Tyler showed up unannounced at Perry’s solo club gig in New York and proclaimed: “I am not leaving Aerosmith.”

Drummer Joey Kramer confirmed the band is experiencing “personal differences,” and will seek a new singer should Tyler leave. “I’d love to hear suggestions... a frontman and performer, able to perform the songs as well as sing them!”

Sound familiar? I suggest Mike Z. He has a huge mouth, a great voice and he's a top performer who put on a front saying no Chapter 11 was imminent just before filing and leaving with his head high to pursue solo interests, i.e. sue for $12mio.

"Walk this Way (This Is Nortel)"

Is it true that the people going from Nortel to Ericsson for CDMA/LTE got a big cash bonus because Nortel did not want to leave the cash for Ericsson?

I hadn't heard that; if so, I expect noble management would reward itself first and foremost, as usual.
I personally doubt I'd invest any of it in E/// - tools, training, etc - until I knew what the heck was up going into the new year.

I am pleased to see the Party continues for some on the Nortanic!

Its time to wind Nortel up before there is Nothing left for Creditors. The investors have already been screwed.

This whole disaster gets worse and worse... somebody needs to call a halt to this madness.

Still losing money as they continue to trade and grind this once great company into the ground.

<<Nortel delivers communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next generation technologies, for both service provider and enterprise networks, support multimedia and business critical applications. >>

How in hades can they still be touting this BS?

<<This year’s sales exclude those related to Equity Investees’ revenues of $348 million...>>

Can someone please explain what an Equity Investee is?

The Equity Investees are those EMEA subsidiaries (e.g. Netas) that the US SEC asked to be listed differently since they are not in a bankrupt state, like the Nortel businesses in the US, Canada, and the UK are. These subsidiaries are for sale, but are not part of the auction process we've been watching - if no one buys them, they will end up stand-alone businesses providing outsource services to whomever buys the related Nortel divisions - if they can't make ends meet that way, then they will go bankrupt separately. Since they are not part of the ongoing bankruptcy process, the SEC didn't like the way Nortel's accountants were appropriating all their income and wanted it broken out.

At least that's how I understand it...

Thanks for your explanation, XPM_guy. For the briefest moment, I thought it might have something to do with us bagholding shareholders.

What sad numbers to see....
The geographic breakdown (buried under the "Consolidated Financial info" link on announcement page) shows the entire EMEA region reporting revenue of only 10 million. total revenue!!??!! A tiny fraction of anywhere else... What's that about?

Also can anyone in EMEA confirm something I was told by a friend there please; Was something along the lines that, unlike Nth America, UK or EU laws say Chapt 11 has a max duration of 1 year. If not solved in that time it's Ch7 (or whatever they call it in EU)?

In the UK chapter 11 is called 'administration'. It normally lasts a year unless the courts approve an extension. They will approve this as long as things are progressing reasonably at the hands of the administrators.

http://www.wilsonfield.co.uk/corporate/admin-fa...

Earnst & Young will apply for and get this for Nortel UK.

Yes, E&Y will do that....and earn more for "managing" the process.

"Customer service levels remain strong" ...and the punch lines keep on coming
...for what customers are left

around $1B sales and $500M loss ...with cash down as they delay paying debt and creditors under bankruptcy...

another punch line is "maximizing value for stakeholders including creditors" since they haven't farmed out what will be paid yet, and "employees" with severances axed under bankruotcy protection yet they secured bonuses, traded options for cash again, increases lawsuit insurance with premiums that get paid first like legal fees, etc... what a scam... sooner gone the better...who cares about Q4, it will only be met with more hype when the numbers do the talking.

This is what its like these days when someone in Enterprise tries to help the CVAS execs with a customer issue: http://www.youtube.com/watch?v=VY-EFhXMFC0

What a coincidence !!! CVAS is the only one left, and it is also the only one with positive net gain !!! Another wonderful job by Nortel accountants fixing numbers !!

The problem is that CVAS projects take half a year or more from order to completion. If you look at just these 3 month figures then sure, CVAs is doing better than the same 3 months in 2008. Unlike PBX sales which are quick from order to delivery the CVAS figures really have to be considered over a longer period for this reason.

So, over a longer period, say 9 months (as shown in the balance sheet), CVAS is also deteriorating.

I wouldn't say that Nortel is fixing numbers on this, it's plain to see for anyone who looks that CVAS aint doing so well.

While I won't be so foolish as to defend Nortel's accountants (or executives), the fact remains that CVAS is the only division leading its sector in market share and revenue. Business has been increasing, even under bankruptcy, so it is not surprising that CVAS shows a net gain while the rest of Nortel slides under the waves.

Now if Nortel would only allow CVAS to come to auction and be sold - then we would know its true value. But apparently as long as it continues to generate new revenue, the leeches at the top will continue to hold CVAS back to feed on it: their bonus money has to come from somewhere! Perhaps once revenues drop there as well, as they must with the silence on any future for CVAS causing uncertainty to mount, we'll finally see CVAS hit the auction block...

"...apparently as long as it continues to generate new revenue, the leeches at the top will continue to hold CVAS back to feed on it"

Regarding the lack of CVAS stalking horse, are you sure it's not really the case that your only 2 interested parties would have to go too far into debt (read: are too small) to purchase such a large division and that there aren't other interested parties?

That's a definite possibility - we don't know because they won't say. Last I heard (a while back - they've been mum for some time) there were 4-7 serious suitors, including the 2 that have gotten pessimistic press coverage due to their relatively small size but also including larger players...

So I would hope that CVAS's leading position would attract larger fish as well - e.g. NSN looking for an established North American customer base. We'll see, eventually, if the opportunity for a larger buyer was squandered like so many others by Nortel's feckless execs...

CVAS does not appear to be a fit with NSN. Understand the business first. NSN is typically wireless. CVAS is wireline. CVAS also has a lot of old clunker products. An investment from large corporates to buy CVAS is better spent on future tech like LTE.

I dont think there are any large players for CVAS. Otherwise the deal would have taken place already. I think the two small cos are trying to arrange financing but are having a tough time. So my take is there is not a single bid on the table.

Same with MEN. I dont think there is anyone else at the table unless someone decides to crash Ciena's party. The quarterly shows MEN making only 240M of which product must be 200M. Shows business has tanked big time.

In spite of Nortel's best and sustained efforts, of all the offspring Nortel has sprung this year, I'd just like to see one single solitary business unit emerge from the orifice that gives life, not its neighbor.

let me explain
Nortel is buying revenues
Nortel cost is $1.5 on each $1 of revenue /in Q3 2009/
Nortel calls it maximizing value for customers
and
I don't see how good that can be for creditors?
Creditors would get less than 20 cents on a doll when all is done/gone, much less.
There is a silver lining in the Nortel's saga thou.
I would call it SD or Synchronized Diving.
much better than TC or Total Collapse!