Avaya to Unveil New Road Map on Jan. 19

I do not understand why the transaction date is 19 Dec 2009. Why it is not 31 Dec 09 or 1 Jan 2010. I hope there is no corruption (Trf customer order to Avaya)

This is where Ch 11 appeared on NTs buzzboard:

http://community.nortel.com/go/blogs/buzzboard?...

and Joel was there to clarify:

http://community.nortel.com/go/blogs/buzzboard/...


January 14, 2009 (Computerworld) One major reason why Nortel Networks Corp. filed for protection from its creditors in the U.S. and other countries today was to preserve $2.4 billion in cash, which the company plans to use to provide support and service its customers, Nortel's head of enterprise sales said today.

"The $2.4 billion in cash we have is an important number to understand," said Joel Hackney, president of enterprise solutions at Nortel, in a telephone interview. "That money allows us to deliver products we have committed to customers and allows product support for customers."

I would like to understand more about that $2.4 billion in cash. The Ottawa Citizen reported that most of the cash was held by foreign subsidiaries and committed to joint ventures. If the cash wasn't readily available for paying down the debt that was due on Jan 15th 2009 and also available for continued restructuring then shouldn't it have showed up on the balance sheet as Restricted Cash?

To paraphrase Joel, the whereabouts of $2.4 billion in cash is important to understand.

I read through many of these quotes that are supposedly ancient hat that we need to put behind us and move on, etc. but their utterers are still around, allocating the next few bil, 'splaining how important it is they do so.

Surely we all still have this link in our Favorites - www.joelhackney.com demurely colored in Nortel Blue? Last updated 2008-ish?

I thrive on the chance to tackle complex challenges and come up with simple, effective and well-designed solutions. After 15 years with GE, I joined Nortel in December 2005 where I now serve as President, Enterprise Solutions. In addition to diving head-first into the dynamic telecommunications world, joining Nortel also gave me a chance to come home to North Carolina after spending several years abroad.

His favorite books are loaded with road maps:

•Good to Great by Jim Collins - While the book offers no silver bullets for success, it does lay out a great road map for companies to improve their execution based on an exhaustive research process.

•Road Less Traveled by Scott Peck - His personal stories as well as the those of others make for a very compelling read.

•What The Dog Saw by Malcolm Gladwell


•Roadless - The Dog We Saw on the Way, Nortel's Way, Out the Door With no Severance - by Nortel Employees

•Hit the Road, Jack, Jacques, Jackie, Jaquita, Whatever by Mike Zafirovski

yes4aapl
666 posts

"How 6000 employees will fit in?"

Good question taken in the context of :

1. Enterprise CPE sales tanking globally both in Avaya and Nortel.
2. Avaya debt rated as junk

And Lastly the kiss of death for the Avaya Nortel merger

3. The Strangler is still in a Job.

Ahhhhhhhhhhhh.

Yep, Hack is still there. Maybe he is planning to take over Avaya? Or becoming the ethics prime for the new firm? Probably will need to hire Mike Z to help with that program.

Yeah I just cannot believe the Hack got a job in Avaya.
Can only imagine the employees all shaking their heads on that one.
I've personally not heard of any who rate him. At best, they're ambivalent - generally don't know him as he seems to just hang around in the US, never spotted in other places he claimed to "lead".
Those I've met who have dealt with him who offer an opinion, most to said (in so many words) he's a short tempered autocrat.

And he's going to lead the US government sales division....? :-))

Isn't there a song about that.
Just step into the arms of the midnight strangler.
Maybe henley?

The possibilities are nigh endless -

("Elvira" sung with a Spanish accent)

Avaya, Avaya!
My foreskeen on fya,
uh-BY-ah!

(segue into)

Juan sings uh-BY-ah
I hear Uh, bye, yall.

I sing Kum-bay-a.
You nod Oiweh! Ja!

You say A-vay-a
I say Uh, why, huh?

A-vay-a! Uh, why, huh?
uh-BY-ah! Uh, bye, yall !

Lets call the whole thing off.

You can bet the new roadmap ain't gonna include the yellow brick road.
The map will take you to Mexico, India, China, Poland or Turrrrrrrrrrkey.

This is hilarious - "contrary to what Avaya Senior Sales VP/P Todd Abbott told"

Birds of a feather? Said Nortel, among countless other promises: "No bankruptcy filing is imminent" Unless, see....

http://www.crn.com/networking/222301389;jsessio...

Avaya has provided ChannelWeb.com with additional details about its combined Avaya-Nortel (NYSE:NT) product road map, which the company is set to formally announce Tuesday.
Avaya briefed ChannelWeb in advance of the announcement for a Monday story describing products to be discontinued and what programs VARs could expect. An Avaya spokesperson contacted ChannelWeb Monday afternoon to clarify a few points.

Avaya will not end-of-sale the AS 5300 model application server, contrary to what Avaya Senior Vice President of Sales and President of Field Operations Todd Abbott told ChannelWeb last week. According to the Avaya spokesperson, Avaya will continue to sell the AS 5300 into government accounts and will be integrating it into Avaya Aura, the company's virtualized UC platform.

Avaya will, however, be discontinuing the MCS 5100 media conferencing server and Nortel Multimedia Conferencing. The spokesperson stated that Avaya has migration plans for both products and the current versions will reach end-of-sale status by the end of 2010.

It just occurred to me that this is the 21st Century... shouldn't Avaya be using GPS?

How to ever again trust a GPS that suggests; "This is the right turn"

Ah, but blindly following one's GPS doesn't always work out well:

http://www.post-gazette.com/pg/10010/1027202-14...

The simple truth about compensation expense.

Compensation expense DOES NOT come out of earnings. It is an expense that comes out of Gross Profit BEFORE earnings is calculated.

Gross Profit = Revenue subtract Cost of Goods Sold
Earnings Before Interest, Taxes (EBIT) = Gross Profit subtract (Sales, General & Admin Expense (SG&A) plus Research & Development Expense (R&D))

Also the acquisition is reflected on the Balance Sheet, not the Income Statement which does reflect the compensation costs. There will be assets and liabilities on the Balance Sheet associated with the Nortel acquisition.

Many customers will want to know about the lifecycle for their systems in place today. How long will they continue to be sold and supported and what is the migration path for moving forward when they are ready. Many customers simply will not replace their communications infrastructures because of this transaction as anything purchased over the past 3 years or so likely still has value on their respective Balance Sheets and has not been fully amortized.

Will Mr. M. Z. eventually get his COMPENSATION of $12.3 million US dollars?
Will the Bankruptcy court approves it?
Will he get it after the Bankruptcy Protection is terminated?
Will he get it, and how will he get it when the company is dissolved? Liquidated or...
Maybe he got it now? We just don't know it???

Will I be getting back my Retirement Allowance Plan funds???

I wanted to donate to the HAITIAN EARTHQUAKE RELIEF DRIVE... of $20 CDN
dollars!!! But NORTEL has stolen my Allowance!

SO SORRY HAITIANS! I couldn't afford it now! Being Retired, I have to watch
my pennies where I spend it!!!

Unsecured Creditors will likely all get some portion of their claim based on court approvals for the claim, court approvals for the distribution of cash and the amount of cash available in each country for creditor payments.

Nortel's god of analingus TongeInCheeks, why brown nose a dead horse?

Unsecured creditors are the last to get anything, why keep misleading? Do you think they will see anything after secured creditors are paid first?

Pensioners and workers of Nortel literally get nothing yet management sees bonuses.

Are you aware that defrauding CEO's promoted than fired after criminally charged Hackney is going to Avaya?

Have you read Avaya's desperate BS hype on no better time to buy, etc., amid their financial turmoil that mirrors Nortel's past failed strategies to delay or cushion another 6K employees inevitable termination when they fail in 18 months? Do the arithmetic. Forever challenged with intent.


Comments;
I love how these same "key" people he can defend as being important for Nortel deserve bonuses, but the people on the front line who do the real work get nothing.

However, we keep hearing those who are responsible were laughing all the way to the bank. Do we need another Enron before both the US and Canadian gov't wake up?

If they can't pay the severance which is a written legal binding contract then why would it be okay to pay the executives the bonus when the company is being driven to the ground?

I also think this drivel with regard to having to pay bonuses to retain top talent is old and worn out.

How can these clowns in Nortel consider their managers as top notch?
I mean they've managed this company into bankruptcy

Nortel senior management have destroyed this company's name, have destroyed the company financially

I personally believe that the executive staff members should have to return all their extremely fat bonuses back to the company if a bankcrupty is declared.

4mer employee: I cannot afford it but I did. I know many others who did too. So your little note sounds kinda fake - you probably would not have donated irrespective.

Providing hope of unsecured recovering lacks credibility, let alone to claim any hope of "moving forward" in a "migration plan" when everything has been torched /fire sold... hysterical hype

As does some one who is quick to exercise mean spirited testimonials of knowing "others who did" while bashing honesty and lying about donating himself in "I did".

These /this misleading fruitcake(s) just got to be part of the soon to be rifled in 18 months ex-Nortel rat pack . Bad habits die hard. The lack of ethics are profoundly astounding, enough to make anyone civil want to vomit. Be aware of who you read here. They lie.

well I did and that is a fact. it does not have to be much. you are just another jerk on this blog. hopefully you are the one turfed. jack ass. at least have some orginiality instead of copying protosphere's id unless you are misleading bloggers being the same person.

sure you did...sure... and you sound so philanthropic to prove it. How can we doubt such a civil display of integrity and honesty?

"well I did and that is a fact" (fact is redundant if it were true) followed by "it does not have to be much" What's next connecting the psychological dots, donating nothing at all?

note to self. never hire a nincompoop like you who only complain and whine and see gloom in everything.

read slowly

y o u w i l l a l w a y s b e a s c h m u c k .

<<Main Entry: road map
Function: noun
Date: 1883

2 a : a detailed plan to guide progress toward a goal
b : a detailed explanation>>

road map. (2010). In Merriam-Webster Online Dictionary.

Retrieved January 18, 2010, from http://www.merriam-webster.com/dictionary/road map

Nortel had plenty of "b." . Too bad they didn't have and "a."

Well, "s" is right next to "a" on the keyboard and someone must've surely hit it by mistake, once or twice, so Nortel indeed had plenty of "b" but also didn't lack for "s."


Hence bs bs bs.....

there was a road map. it led to a cliff. the brakes did not work so they skidded off into thin air. all the hot air they blew was not enough to keep them going. the weight of management took them down faster than a rock.

Another plan... I wonder if there are endless contingencies with Hack at the helm, as they recently stated there is no better time to buy Nortel or how 90% of top 500 fortune companies buy Nortel... seems they have acquired more than just Nortel's Enterprise.

Lets do the math,
Around $900M to buy it, another $700M for payroll )and god knows what other costs) equals $1.6M ...in profit they must recover to break even....profit not sales and they have no profit than steep decline...

Can you see them generating this profit where there is none to recoup this injection of funds as they struggle and use this gamble to beef revenues, as had Nortel done, same ploys, same hype...

If to add customers like other buyers of their depreciating units, I think this further ruined their position and credibility. Losing customers by this for the declining customer base they bought to equal what gain. who will trust their projections. So much hype by the buyers with so little substantiation.

Entering the router market would be suicide against Cisco, as grave as buying stigmatized Nortel to begin with... and again, where will these 6,000 Nortel employees be in 18 months.

Nortel was plan challenged too, there must be a better explanation of why they invested so greatly in this consolidating market when in such a dire position... megalomaniac Nortel saw how size and buying revenues was their downfall with no lessons learned by Avaya who also maintain their desperate and misleading hype.

To "rival Cisco Systems"?
I hardly think so...

re enter "Switches and routers low margins"?


"Avaya officials have indicated the company will support the Nortel products for 12 to 18 months, but haven't said much beyond that."
Avaya's purchase of Nortel's enterprise business may come down to Avaya's desire to expand its customer base, rather than grow into other markets."

_____________________________________________


Where will 6,000 employees be in 18 months with Hackney still taking this one to a new level?

Again:
"Avaya's desire to expand its customer base, rather than grow into other markets." ...like other their other garage sale buyers


Nortel is gone as other branding will market into a declining customer base. They bought these declining revenues for customers, and to cannibalize what they can in this consolidating market with lower margins and more competition...

Players must depending on higher volumes with lower margins to sustain themselves and survive in this trend and battle of ongoing telecom wars. One where cash is precious for desperate acquirers as they gamble on these garage sales to risk adding and mega cost to something that may not make money, after a thousand ninja cuts which is the name of the game. How much will 6K employees cost over 18 months at avg. 75K ea.? $675M? after already paying $915M? Never mind revenues, what will it earn to recoup all of this?

It will be real interesting to see if they define Hack's "leadership" role. Maybe put him in charge of the ethics program?

It will be interesting to see what Avaya has to say about this, as I'm still not certain that know 100% about all the Nortel assets/products they acquired. And I think we all know what the ultimate road path will be--getting everything integrated into an Avaya Aura system. But customers that purchased Nortel selected it over Avaya for a reason, and should continue to use it if they so choose. And if they want to continue to get use out of their Nortel investment while adding new features, they can do so with SaaS-based solutions like OnState - http://www.onstate.com/nortel

Cisco leaked a video of the wedding rehearsal. Ay! Av-ay-a! Canta y no llores!

http://www.youtube.com/watch?v=fj7mz4VFacM

Avaya's new road map : Watch these right angle turns that ends up in a cliff !

People are most worry about Avaya swallowing a poison pill of Hankney, that is really scary.