Nortel is still engaged in a massive operation to restate its figures for the last three years, and this is likely to eliminate the $732m net income it claimed for 2003. It said that work to date shows that identified adjustments are less than 2% of revenue and primarily relate to timing issues.
It said it expects to be able to report figures for the first two quarters of the current financial year by the middle of August.
Though Nortel announced in June that it planned to outsource the bulk of its manufacturing operations to Flextronics International Ltd, CEO Bill Owns said the company is focused on driving improvements in its cash management and operational efficiencies. He said he expects revenue in 2004 to grow faster than the market, which he forecast would expand in the low to middle single digits.
On June 30, the US District Court for the Southern District of New York signed orders that consolidated the 27 class actions that have been launched against the company. The actions claim that the defendants made false and misleading statements in violation of US securities laws.
