A snippet from a report about Nortel
Nortel said the latest delay is based on adjustments to revenue identified mainly at the company’s optical networks and enterprise networks businesses.
Based on its review so far, it expects to raise 2003 revenues by $450 million, and reduce 2004 revenue growth to the low single digits from the mid single digits previously estimated.
Going back further, the company expects to reduce its previously reported 2000 revenue figure by $2.5 billion and to reduce 1999 revenue by $600 million.
“Of the amount in 2000, approximately US$250 million of revenue will be permanently reversed, with the remaining revenue adjustments in 1999 and 2000 being deferred and recognized in subsequent years,” the company said.
Nortel previously had maintained that the revenue restatement related to timing issues and would not materially change its revenue numbers.
The company is planning to release preliminary unaudited results for the third quarter of 2004 by mid December and is aiming to release figures for 2003 and the first and second quarters of 2004 “as soon as practicable.”
As a result of the delay in filing and releasing statements, the company will need to seek a new waiver of certain defaults on a $750 million loan provided by Export Development Canada. The waiver is due to expire Nov. 19.
The company is also no longer in compliance on other borrowings and some of its creditors could call for early repayment on its bonds at any time.