Nortel Networks to delay financial results release
Brampton ON-based Nortel Networks Corp. has decided to delay releasing its fourth-quarter and year-end 2005 financial results after the company said it was going to restate certain financial results for the 2003 and 2004 fiscal years and the first nine months of 2005. The company noted in a news release that there will be negative revenue implications of $157 million and $77 million in 2003 and 2004 respectively. As well, net earnings/loss will be negatively affected by $91 million for 2003 and $93 million for 2004. There will also be a negative impact on revenue prior to 2003 and Nortel expects that to be $470 million on revenue and $99 million on net earnings/loss levels. "Our priority is to have accurate financial information. Although the need to restate certain financial statements is unfortunate, it's the right thing to do. This revenue is real – it was recognized in the wrong periods.