Tous Actualités
Suivre
Abonner Nortel Networks

Nortel Networks

Nortel Files and Reports Results for the First Quarter 2006

Toronto, Canada (ots/PRNewswire)

    Financial Reporting is Now Current
    Nortel Provides Status Update
    - Q1 2006 revenues of US$2.38 billion, essentially flat year over year
    - Q1 2006 net loss of US$167 million, (US$0.04) per common share on a
      diluted basis
    - Q1 2006 cash balance of US$2.70 billion
TORONTO, Canada, June 6 /PRNewswire/ --
Nortel Networks(x) Corporation (NYSE:NT; TSX: NT) today announced
that it  and its principal operating subsidiary Nortel Networks
Limited (NNL) have  filed their unaudited financial statements for
the first quarter of 2006  prepared in accordance with accounting
principles generally accepted in the  United States and related
Quarterly Reports on Form 10-Q and corresponding  Canadian filings.
All dollar amounts included are in U.S. dollars.
TORONTO, Canada, June 6 /PRNewswire/ --
First Quarter 2006 Results
TORONTO, Canada, June 6 /PRNewswire/ --
Revenues were US$2.38 billion for the first quarter of 2006
compared to  US$2.39 billion for the first quarter of 2005 and US$3.0
billion for the  fourth quarter of 2005. The Company reported a net
loss in the first  quarter of 2006 of US$167 million, or (US$0.04)
per common share on a  diluted basis, compared to a net loss of
US$104 million, or (US$0.02) per  common share on a diluted basis, in
the first quarter of 2005 and a net  loss of US$2,302 million, or
(US$0.53) per common share on a diluted basis,  in the fourth quarter
of 2005.
Net loss in the first quarter of 2006 included an income tax
expense of  approximately US$23 million, a shareholder litigation
expense of US$19  million reflecting a mark-to-market adjustment of
the share portion of the  proposed class action settlement and a
benefit of US$35 million in gains on  the sale of businesses and
assets. Net loss in the first quarter of 2005  included special
charges of US$14 million related to restructuring  activities. Net
loss in the fourth quarter of 2005 included a litigation  expense of
US$2,474 million for the proposed class action settlement, a tax
benefit of approximately US$140 million related to a liability
release as a  result of new information regarding transfer pricing
issues, special  charges of US$25 million related to restructuring
activities and US$11  million of costs related to the sale of
businesses and assets.
"I am pleased to be current in our financial reporting," said Mike
Zafirovski, president and chief executive officer, Nortel. "While our
results reflect a challenging first quarter, we continue to expect
good  revenue and operating margin momentum commencing in the second
quarter, in  line with our previously communicated full year plan. We
remain focused on  our business transformation initiatives, integrity
renewal and short term  growth opportunities, while concurrently
building the long-term foundation  for the new Nortel."
TORONTO, Canada, June 6 /PRNewswire/ --
Breakdown of First Quarter 2006 Revenues
TORONTO, Canada, June 6 /PRNewswire/ --
Mobility and Converged Core Networks revenues were US$1.43
billion, a  decrease of 4 percent compared with the year-ago quarter
and a decrease of  23 percent sequentially. Enterprise Solutions and
Packet Networks revenues  were US$871 million, a decrease of 1
percent compared with the year-ago  quarter and a decrease of 15
percent sequentially. Revenues in both  segments were impacted by the
timing of certain contracts as both deferred  revenues and backlog
increased at quarter end by US$140 million and US$275  million,
respectively.
TORONTO, Canada, June 6 /PRNewswire/ --
Gross margin
TORONTO, Canada, June 6 /PRNewswire/ --
Gross margin was 38 percent of revenue in the first quarter of
2006,  primarily impacted by product mix, including the timing of
certain  contracts, and competitive pricing pressures, partially
offset by  improvements in our cost structure.
TORONTO, Canada, June 6 /PRNewswire/ --
Selling, general and administrative (SG&A)
TORONTO, Canada, June 6 /PRNewswire/ --
SG&A expenses were US$595 million in the first quarter of 2006,
which  included a cost of US$43 million in relation to internal
control  remediation activities and investment in our finance
organization. This  compares to SG&A expenses of US$578 million for
the first quarter of 2005,  which included costs of US$60 million in
relation to restatement activities  and investment in the Company's
finance organization and US$680 million for  the fourth quarter of
2005, which included costs of approximately US$38  million related to
executive recruitment and retirement and costs of US$50  million in
relation to internal control remedial measures, investment in  the
Company's finance processes and our prior restatement related
activities.
TORONTO, Canada, June 6 /PRNewswire/ --
Research and development (R&D)
TORONTO, Canada, June 6 /PRNewswire/ --
R&D expenses were US$478 million in the first quarter of 2006,
reflecting increased investment in targeted product areas and
unfavorable  foreign exchange. This compares to US$474 million for
the first quarter of  2005 and US$451 million for the fourth quarter
of 2005.
TORONTO, Canada, June 6 /PRNewswire/ --
net
TORONTO, Canada, June 6 /PRNewswire/ --
net was net income of US$69 million for
the  first quarter of 2006, which primarily related to investment
income of  approximately US$29 million and a gain of US$26 million
related to the sale  of a note receivable from Bookham, Inc.
TORONTO, Canada, June 6 /PRNewswire/ --
Cash
TORONTO, Canada, June 6 /PRNewswire/ --
Cash balance at the end of the first quarter of 2006 was US$2.70
billion, down from US$2.95 billion at the end of 2005. This decrease
in  cash from the end of 2005 was primarily driven by a cash outflow
from  operations of US$174 million, which included US$91 million for
pension  funding and US$35 million for restructuring, and payments of
US$99 million  for plant and equipment, and net payments of US$98
million related to the  acquisition of Tasman, partially offset by
cash proceeds of US$87 million  related to the sale of the Brampton
facility. On June 1, 2006, US$575  million related to the proposed
class action settlement, plus approximately  US$5 million in interest
(accrued since March 23, 2006), was placed in  escrow pending
satisfactory completion of all conditions to the settlement.
TORONTO, Canada, June 6 /PRNewswire/ --
Outlook (a)
TORONTO, Canada, June 6 /PRNewswire/ --
Commenting on the Company's financial expectations, Peter Currie,
executive vice president and chief financial officer, Nortel, said,
"For  the full year 2006, we continue to expect strong revenue
momentum for the  rest of 2006, resulting in high single digit growth
for the full year 2006  compared to 2005, gross margin to be around
40% as a percentage of revenue  and operating expenses to be flat to
up slightly from 2005, with foreign  exchange and growth related
expenses offsetting productivity and  efficiencies. For the second
quarter of 2006, we expect revenue, gross  margin and operating
expenses to support our full year guidance."
TORONTO, Canada, June 6 /PRNewswire/ --
(a) The Company's financial outlook contains forward-looking
information and as such, is based on certain assumptions, and is
subject to  important risk factors and uncertainties (which are
summarized in italics  at the end of this press release) that could
cause actual results or events  to differ materially from this
outlook.
TORONTO, Canada, June 6 /PRNewswire/ --
Other items
TORONTO, Canada, June 6 /PRNewswire/ --
Financial Reporting Obligations; Stock Exchanges; Debt Securities;
Credit and Support Facilities
TORONTO, Canada, June 6 /PRNewswire/ --
With the filing by the Company and NNL of their Quarterly Reports
on  Form 10-Q for the first quarter of 2006 and corresponding
Canadian filings,  the Company and NNL are now current with their
financial reporting  obligations. With the delivery of the filings to
the New York and Toronto  stock exchanges, and their subsequent
delivery to shareholders, the Company  and NNL will be in compliance
with stock exchange listing requirements and  their financial
statement delivery obligations under applicable securities  laws.
With the delivery of these filings to the indenture trustees, the
Company and NNL will also be in compliance with their obligations
under  their public debt indentures. As previously announced, the
Company and NNL  have obtained waivers under Nortel's USUS$1.3
billion one-year credit  facility and NNL has obtained a waiver from
Export Development Canada (EDC)  of all remaining defaults and
breaches under the EDC performance-based  support facility. With the
delivery of the first quarter of 2006 filings,  the Company and NNL
are in compliance with their obligations under the  credit and
support facilities.
TORONTO, Canada, June 6 /PRNewswire/ --
OSC Bi-Weekly Updates; Management Cease Trade Orders
TORONTO, Canada, June 6 /PRNewswire/ --
Today's announcements serve as a status update by the Company and
NNL  pursuant to the alternate information guidelines of the Ontario
Securities  Commission (OSC). The Company and NNL reported that there
have been no  material developments from prior status updates, with
the exception of the  matters described herein. As previously
announced, the OSC issued an order  prohibiting certain directors and
officers and certain current and former  employees of the Company and
NNL from trading in securities of the Company  and NNL. Two other
Canadian securities commissions issued similar orders.  Now that the
Company and NNL are current in their financial reporting  obligations
for the first quarter of 2006, the Company and NNL will be  applying
to have the management cease trade orders revoked and will cease
reporting under the OSC's alternate information guidelines.
TORONTO, Canada, June 6 /PRNewswire/ --
Recent Business Highlights
TORONTO, Canada, June 6 /PRNewswire/ --
Revenue Momentum
TORONTO, Canada, June 6 /PRNewswire/ --
Recent momentum in Nortel's mobility portfolio includes the
deployment  of one of the world's first commercial high-speed mobile
networks for  Partner Communications Company Ltd in Israel based on
HSDPA technology. In  addition to Partner, Nortel has worked with a
number of wireless operators  on HSDPA trials and deployments
including Vodafone Spain in Barcelona, EDGE  Wireless in the US, SKT
and KTF in Korea, SOFTBANK Group's BB Mobile in  Japan, Orange France
and Mobilkom Austria.  With the signing of an  agreement with China's
Ministry of Railways for GSM-Railway switching  centres along
passenger lines spanning 20 of China's 31 provinces, Nortel  added to
its established leadership GSM-R position, which includes national
deployments for the three largest railway operations in Europe - RFF
in  France, Network Rail in Great Britain and Deutsche Bahn in
Germany.
Nortel continues its lead in the Metro WDM market for the 7th
consecutive year with 26.2% Q1 2006 marketshare (Dell 'Oro Group) to
enable  Ethernet connectivity options and industry leading storage
extension  capabilities in support of Carrier Managed Services. BMW
through Charter  Communications, the Australian Stock Exchange, and
the Agricultural Bank of  China have all recently leveraged Nortel's
strength in securing their business.
Nortel's optical momentum with cable operators continues to build
with  the announcement of customer wins with Charter Communications,
the fourth  largest MSO in the US, and Unity Media, which has
Europe's largest cable  network. These customers were recently added
to the fold of Nortel MSO  customers that include Comcast, Time
Warner, and Cox Communications - the  top three US Cable Operators.
Nortel's enterprise customer momentum includes customers such as;
Station Casinos Inc., one of the leading gaming corporations in the
U.S.,  privately owned airline Jazeera Airways, Lebanon based
consumer product  manufacturing group Industry Development Company
(INDEVCO), and one of  China's top four banks the Agriculture Bank of
China choosing Nortel's  converged IP solutions.
TORONTO, Canada, June 6 /PRNewswire/ --
Leading Next-Generation Solutions
TORONTO, Canada, June 6 /PRNewswire/ --
The world's first handset based HSDPA Network has been launched by
SK  Telecom, South Korea's largest mobile operator using LG-Nortel
wireless  broadband technology. This network is the first to provide
HSDPA  performance on handsets as well as data cards to enable
high-speed  broadband wireless services to subscribers using either a
handset or a  laptop computer. Nortel's HSDPA technology is a key
component in supporting  SK Telecom's "3G+" new service offerings
such as "high quality video call"  and "ultra speed data transfer".
Supporting our belief in the market potential of wireless
broadband  including WiMAX and Wireless Mesh, leading Russia-based
service provider  Golden Telecom is using wireless mesh network
technology from Nortel to  build Moscow's first wireless mesh network
which will expand Golden  Telecom's broadband communication services
to include universal indoor and  outdoor wireless access to
approximately 3.9 million households in Moscow.  National Taiwan
University Electrical Engineering and Graduate Institute of  Business
Administration departments are collaborating with Nortel in a  WiMAX
broadband service trial that includes a wide range of high-bandwidth
multimedia applications.
TORONTO, Canada, June 6 /PRNewswire/ --
About Nortel
TORONTO, Canada, June 6 /PRNewswire/ --
Nortel is a recognized leader in delivering communications
capabilities  that enhance the human experience, ignite and power
global commerce, and  secure and protect the world's most critical
information. Our next- generation technologies, for both service
providers and enterprises, span  access and core networks, support
multimedia and business-critical  applications, and help eliminate
today's barriers to efficiency, speed and  performance by simplifying
networks and connecting people with information.  Nortel does
business in more than 150 countries. For more information,  visit
Nortel on the Web at www.nortel.com. For the latest Nortel news,
visit www.nortel.com/news.
TORONTO, Canada, June 6 /PRNewswire/ --
Certain statements in this press release may contain words such as
" could", "expects", "may", "anticipates", "believes", "intends",
"estimates ", "plans", "envisions", "seeks" and other similar
language and are  considered forward-looking statements or
information under applicable  securities legislation. These
statements are based on Nortel's current  expectations, estimates,
forecasts and projections about the operating  environment, economies
and markets in which Nortel operates. These  statements are subject
to important assumptions, risks and uncertainties,  which are
difficult to predict and the actual outcome may be materially
different. Nortel has made various assumptions in the preparation of
its  financial outlook in this press release, including the following
company  specific assumptions: no further negative impact to Nortel's
results of  operations, financial condition and liquidity arising
from Nortel's  restatements of its financial results; Nortel's prices
increasing at or  above the rate of price increases for similar
products in geographic  regions in which Nortel sells its products;
increase in sales to Nortel's  enterprise customers and wireless
service provider customers in the Asia  Pacific region as a result of
Nortel's joint venture with LG Electronics  Inc.; anticipated growth
in sales to enterprise customers, including the  full year impact to
Nortel's revenues from its acquisition of PEC Solutions , Inc., (now
Nortel Government Solutions Incorporated); improvement in Nortel's
product costs due to favorable supplier pricing substantially offset
by higher costs associated with initial customer  deployments in
emerging markets; cost reductions resulting from the  completion of
Nortel's significant financial restatements and 2004  restructuring
plan; a moderate increase in costs over 2005 related to  investments
in the finance organization and remedial measures related to
Nortel's material weaknesses in internal controls; increased employee
costs  relative to expected cost of living adjustments and employee
bonuses offset  by a significant reduction in executive recruitment
and severance costs  incurred in 2005; and the effective execution of
Nortel's strategy. Nortel  has also made certain macroeconomic and
general industry assumptions in the  preparation of its financial
guidance including: a modest growth rate in  the gross domestic
product of global economies in the range of 3.2% which  is unchanged
from the growth rate in 2005; global service provider capital
expenditures in 2006 reflecting flat to low single digit growth as
compared  to low double digit growth in 2005; a general increase in
demand for  broadband access, data traffic and wireless
infrastructure and services in  emerging markets with the rate of
growth in developed markets beginning to  slow; and a moderate impact
as a result of expected industry consolidation  among service
providers in various geographic regions, particularly in  North
America and EMEA. The above assumptions, although considered
reasonable by Nortel at the date of this press release, may prove to
be  inaccurate and consequently Nortel's actual results could differ
materially  from its expectations set out in this press release.
Further, actual  results or events could differ materially from those
contemplated in  forward-looking statements as a result of the
following (i) risks and  uncertainties relating to Nortel's
restatements and related matters  including: Nortel's most recent
restatement and two previous restatements  of its financial
statements and related events; the negative impact on  Nortel and NNL
of their most recent restatement and delay in filing their  financial
statements and related periodic reports; legal judgments, fines,
penalties or settlements, or any substantial regulatory fines or
other  penalties or sanctions, related to the ongoing regulatory and
criminal  investigations of Nortel in the U.S. and Canada; any
significant pending  civil litigation actions not encompassed by
Nortel's proposed class action  settlement; any substantial cash
payment and/or significant dilution of  Nortel's existing equity
positions resulting from the finalization and  approval of its
proposed class action settlement, or if such proposed class  action
settlement is not finalized, any larger settlements or awards of
damages in respect of such class actions; any unsuccessful
remediation of  Nortel's material weaknesses in internal control over
financial reporting  resulting in an inability to report Nortel's
results of operations and  financial condition accurately and in a
timely manner; the time required to  implement Nortel's remedial
measures; Nortel's inability to access, in its  current form, its
shelf registration filed with the United States  Securities and
Exchange Commission (SEC), and Nortel's below investment  grade
credit rating and any further adverse effect on its credit rating due
to Nortel's restatements of its financial statements; any adverse
affect on  Nortel's business and market price of its publicly traded
securities  arising from continuing negative publicity related to
Nortel's restatements ; Nortel's potential inability to attract or
retain the personnel necessary  to achieve its business objectives;
any breach by Nortel of the continued  listing requirements of the
NYSE or TSX causing the NYSE and/or the TSX to  commence suspension
or delisting procedures; (ii) risks and uncertainties  relating to
Nortel's business including: yearly and quarterly fluctuations  of
Nortel's operating results; reduced demand and pricing pressures for
its  products due to global economic conditions, significant
competition,  competitive pricing practice, cautious capital spending
by customers,  increased industry consolidation, rapidly changing
technologies, evolving  industry standards, frequent new product
introductions and short product  life cycles, and other trends and
industry characteristics affecting the  telecommunications industry;
any material and adverse affects on Nortel's  performance if its
expectations regarding market demand for particular  products prove
to be wrong or because of certain barriers in its efforts to  expand
internationally; any reduction in Nortel's operating results and any
related volatility in the market price of its publicly traded
securities arising from any decline in its gross margin, or
fluctuations in foreign  currency exchange rates; any negative
developments associated with Nortel's  supply contract and contract
manufacturing agreements including as a result  of using a sole
supplier for key optical networking solutions components,  and any
defects or errors in Nortel's current or planned products; any
negative impact to Nortel of its failure to achieve its business
transformation objectives; additional valuation allowances for all or
a  portion of its deferred tax assets; Nortel's failure to protect
its  intellectual property rights, or any adverse judgments or
settlements  arising out of disputes regarding intellectual property;
changes in  regulation of the Internet and/or other aspects of the
industry; Nortel's  failure to successfully operate or integrate its
strategic acquisitions, or  failure to consummate or succeed with its
strategic alliances; any negative  effect of Nortel's failure to
evolve adequately its financial and  managerial control and reporting
systems and processes, manage and grow its  business, or create an
effective risk management strategy; and (iii) risks  and
uncertainties relating to Nortel's liquidity, financing arrangements
and capital including: the impact of Nortel's most recent restatement
and  two previous restatements of its financial statements; any
inability of  Nortel to manage cash flow fluctuations to fund working
capital  requirements or achieve its business objectives in a timely
manner or  obtain additional sources of funding; high levels of debt,
limitations on  Nortel capitalizing on business opportunities because
of credit facility  covenants, or on obtaining additional secured
debt pursuant to the  provisions of indentures governing certain of
Nortel's public debt issues  and the provisions of its credit
facilities; any increase of restricted  cash requirements for Nortel
if it is unable to secure alternative support  for obligations
arising from certain normal course business activities, or  any
inability of Nortel's subsidiaries to provide it with sufficient
funding; any negative effect to Nortel of the need to make larger
defined  benefit plans contributions in the future or exposure to
customer credit  risks or inability of customers to fulfill payment
obligations under  customer financing arrangements; any negative
impact on Nortel's ability to  make future acquisitions, raise
capital, issue debt and retain employees  arising from stock price
volatility and further declines in the market  price of Nortel's
publicly traded securities, or any future share  consolidation
resulting in a lower total market capitalization or adverse  effect
on the liquidity of Nortel's common shares. For additional
information with respect to certain of these and other factors, see
Nortel's Annual Report on Form 10- K/A, Quarterly Report on Form 10-Q
and  other securities filings with the SEC. Unless otherwise required
by  applicable securities laws, Nortel disclaims any intention or
obligation to  update or revise any forward-looking statements,
whether as a result of new  information, future events or otherwise.
TORONTO, Canada, June 6 /PRNewswire/ --
(x) Nortel, the Nortel logo and the Globemark are trademarks of
Nortel Networks.
TORONTO, Canada, June 6 /PRNewswire/ --
Nortel will host a teleconference/audio webcast to discuss First
Quarter 2006 Results.
TORONTO, Canada, June 6 /PRNewswire/ --
TIME: 8:30 AM - 9:30 AM EDT on Tuesday, June 6, 2006
TORONTO, Canada, June 6 /PRNewswire/ --
To participate, please call the following at least 15 minutes
prior to  the start of the event.
    Teleconference:                   Webcast:
    North America: 1-888-211-4395     http://www.nortel.com/q1earnings2006
    International: +1-212-231-6007
    Replay:
    (Available one hour after the conference call)
    North America: 1-800-383-0935     Passcode: 21293763 followed by the
                                      number sign
    International: +1-402-530-5545    Passcode: 21293763 followed by the
                                      number sign
    Webcast: http://www.nortel.com/q1earnings2006
                         NORTEL NETWORKS CORPORATION
              Consolidated Statements of Operations (unaudited)
       (U.S. GAAP; Millions of U.S. dollars, except per share amounts)
                                                  Three months ended
                                         March 31,  December 31,   March 31,
                                           2006         2005         2005
                                       ------------ ------------ ------------
                                                                  As restated
    Revenues                            US$  2,382   US$  2,997   US$  2,389
    Cost of revenues                         1,474        1,815        1,377
                                       ------------ ------------ ------------
    Gross profit                               908        1,182        1,012
    Selling, general and administrative
     expense                                   595          680          578
    Research and development expense           478          451          474
    Amortization of intangibles                  5            6            2
    Special charges                              5           25           14
    (Gain) loss on sale of businesses
     and assets                                (35)          11           22
    Shareholder litigation settlement
     expense                                    19        2,474            -
                                       ------------ ------------ ------------
    Operating earnings (loss)                 (159)      (2,465)         (78)
    Other income - net                          69          122           54
    Interest expense
      Long-term debt                           (46)         (52)         (50)
      Other                                    (24)          (4)          (3)
                                       ------------ ------------ ------------
    Earnings (loss) from continuing
     operations before income taxes,
     minority interests and equity in
     net earnings (loss) of associated
     companies                                (160)      (2,399)         (77)
    Income tax benefit (expense)               (23)         102          (16)
                                       ------------ ------------ ------------
                                              (183)      (2,297)         (93)
    Minority interests - net of tax              9           (4)         (14)
    Equity in net earnings (loss) of
     associated companies - net of tax          (2)           1            1
                                       ------------ ------------ ------------
    Net earnings (loss) from continuing
     operations                               (176)      (2,300)        (106)
    Net earnings from discontinued
     operations - net of tax                     -           (2)           2
                                       ------------ ------------ ------------
    Net earnings (loss) before cumulative
     effect of accounting change              (176)      (2,302)        (104)
    Cumulative effect of accounting
     change - net of tax                         9            -            -
                                       ------------ ------------ ------------
    Net earnings (loss)                 US$   (167)  US$ (2,302)  US$   (104)
                                       ------------ ------------ ------------
                                       ------------ ------------ ------------
    Average shares outstanding (millions)
     - Basic                                 4,339        4,338        4,338
    Average shares outstanding (millions)
     - Diluted                               4,339        4,338        4,338
    Basic and diluted earnings (loss)
     per common share
      - from continuing operations      US$  (0.04)  US$  (0.53)  US$  (0.02)
      - from discontinued operations          0.00         0.00         0.00
                                       ------------ ------------ ------------
    Basic earnings (loss) per common
     share                              US$  (0.04)  US$  (0.53)  US$  (0.02)
                                       ------------ ------------ ------------
                                       ------------ ------------ ------------
                         NORTEL NETWORKS CORPORATION
                   Consolidated Balance Sheets (unaudited)
       (U.S. GAAP; Millions of U.S. dollars, except for share amounts)
                                         March 31,  December 31,   March 31,
                                           2006         2005         2005
                                       ------------ ------------ ------------
                                                                  As restated
                            ASSETS
    Current assets
    Cash and cash equivalents           US$  2,695   US$  2,951   US$  3,430
    Restricted cash and cash
     equivalents                                77           77           81
    Accounts receivable - net                2,620        2,862        2,624
    Inventories - net                        1,984        1,804        1,974
    Deferred income taxes - net                388          377          248
    Other current assets                       823          796          428
                                       ------------ ------------ ------------
    Total current assets                     8,587        8,867        8,785
    Investments                                246          244          287
    Plant and equipment - net                1,531        1,564        1,586
    Goodwill                                 2,680        2,592        2,260
    Intangible assets - net                    166          172           75
    Deferred income taxes - net              3,606        3,629        3,707
    Other assets                             1,025        1,044          758
                                       ------------ ------------ ------------
    Total assets                        US$ 17,841   US$ 18,112   US$ 17,458
                                       ------------ ------------ ------------
                                       ------------ ------------ ------------
                     LIABILITIES AND
                   SHAREHOLDERS' EQUITY
    Current liabilities
    Trade and other accounts payable    US$  1,069   US$  1,180     US$  974
    Payroll and benefit-related
     liabilities                               778          801          460
    Contractual liabilities                    297          346          518
    Restructuring liabilities                   84           95          144
    Other accrued liabilities                4,384        4,200        3,593
    Long-term debt due within one year         168        1,446        1,289
    Loan payable                             1,300            -            -
                                       ------------ ------------ ------------
    Total current liabilities                8,080        8,068        6,978
    Long-term debt                           2,445        2,439        2,566
    Deferred income taxes - net                109          104          144
    Other liabilities                        5,778        5,935        3,670
                                       ------------ ------------ ------------
    Total liabilities                       16,412       16,546       13,358
                                       ------------ ------------ ------------
    Minority interests in subsidiary
     companies                                 754          780          626
                   SHAREHOLDERS' EQUITY
    Common shares, without par value -
     Authorized shares: unlimited;
      Issued and outstanding shares:
       4,339,337,625 as of March 31,
       2006 and 4,339,162,932 as of
       December 31, 2005                    33,935       33,932       33,840
    Additional paid-in capital               3,295        3,281        3,301
    Accumulated deficit                    (35,692)     (35,525)     (33,054)
    Accumulated other comprehensive
     loss                                     (863)        (902)        (613)
                                       ------------ ------------ ------------
    Total shareholders' equity                 675          786        3,474
                                       ------------ ------------ ------------
    Total liabilities and
     shareholders' equity               US$ 17,841   US$ 18,112   US$ 17,458
                                       ------------ ------------ ------------
                                       ------------ ------------ ------------
                         NORTEL NETWORKS CORPORATION
              Consolidated Statements of Cash Flows (unaudited)
                    (U.S. GAAP; Millions of U.S. dollars)
                                                 Three months ended
                                         March 31,  December 31,   March 31,
                                           2006         2005         2005
                                       ------------ ------------ ------------
                                                                  As restated
    Cash flows from (used in) operating
     activities
      Net earnings (loss) from
       continuing operations            US$   (176)  US$ (2,300)  US$   (106)
      Adjustments to reconcile net
       earnings (loss) from continuing
       operations to net cash from
       (used in) operating activities,
       net of effects from acquisitions
       and divestitures of businesses:
        Amortization and depreciation           60           69           81
        Non-cash portion of shareholder
         litigation settlement                  19        1,899            -
        Non-cash portion of special
         charges and related asset
         write downs                             -           24            -
        Equity in net (earnings) loss
         of associated companies                 2           (1)          (1)
        Stock option compensation               25           30           18
        Deferred income taxes                   16         (135)           8
        Other liabilities                       73           38           79
        (Gain) loss on sale or write
         down of investments,
         businesses and assets                 (34)         (40)          27
        Other - net                            103          113         (107)
        Change in operating assets and
         liabilities                          (262)         420         (262)
                                       ------------ ------------ ------------
      Net cash from (used in)
       operating activities of
       continuing operations                  (174)         117         (263)
                                       ------------ ------------ ------------
    Cash flows from (used in) investing
     activities
      Expenditures for plant and
       equipment                               (99)         (82)         (54)
      Proceeds on disposals of plant
       and equipment                            87            -            -
      Restricted cash and cash
       equivalents                               3           (5)           1
      Acquisitions of investments
       and businesses - net of cash
       acquired                               (121)        (202)          (2)
      Proceeds on sale of investments
       and businesses                           30          162           83
                                       ------------ ------------ ------------
      Net cash from (used in)
       investing activities of
       continuing operations                  (100)        (127)          28
                                       ------------ ------------ ------------
    Cash flows from (used in) financing
     activities
      Dividends paid by subsidiaries
       to minority interests                   (18)         (10)         (14)
      Increase in notes payable                  4           11           20
      Decrease in notes payable                 (3)         (19)         (26)
      Borrowings in loan payable             1,300            -            -
      Repayments of long-term debt          (1,275)           -            -
      Decrease in capital leases payable        (5)          (2)          (1)
      Issuance of common shares                  1            2            -
                                       ------------ ------------ ------------
      Net cash from (used in)
       financing activities of
       continuing operations                     4          (18)         (21)
                                       ------------ ------------ ------------
    Effect of foreign exchange rate
     changes on cash and cash
     equivalents                                14          (16)         (35)
                                       ------------ ------------ ------------
    Net cash from (used in) continuing
     operations                               (256)         (44)        (291)
    Net cash from (used in)
     operating activities of
     discontinued operations                     -           (1)          36
                                       ------------ ------------ ------------
    Net increase (decrease) in cash
     and cash equivalents                     (256)         (45)        (255)
    Cash and cash equivalents at
     beginning of period                     2,951        2,996        3,685
                                       ------------ ------------ ------------
    Cash and cash equivalents at
     end of period                      US$  2,695   US$  2,951   US$  3,430
                                       ------------ ------------ ------------
                                       ------------ ------------ ------------
                         NORTEL NETWORKS CORPORATION
               Consolidated Financial Information (unaudited)
                    (U.S. GAAP; Millions of U.S. dollars)
    Segmented revenues
    The following table summarizes our revenue by segment for:
                                                 Three months ended
                                         March 31,  December 31,   March 31,
                                           2006         2005         2005
                                       ------------ ------------ ------------
                                                                  As restated
    Revenues
    Mobility and Converged Core
     Networks                           US$  1,426   US$  1,862   US$  1,486
    Enterprise Solutions and Packet
     Networks                                  871        1,028          878
                                       ------------ ------------ ------------
    Total reportable segments                2,297        2,890        2,364
    Other                                       85          107           25
                                       ------------ ------------ ------------
    Total revenues                      US$  2,382   US$  2,997   US$  2,389
                                       ------------ ------------ ------------
                                       ------------ ------------ ------------
    Geographic revenues
    The following table summarizes our geographic revenues based on the
    location of the customer for:
                                                 Three months ended
                                         March 31,  December 31,   March 31,
                                           2006         2005         2005
                                       ------------ ------------ ------------
                                                                 As restated
    Revenues
    United States                       US$  1,132   US$  1,363   US$  1,219
    EMEA(a)                                    631          768          673
    Canada                                     159          138          112
    Asia Pacific                               301          542          264
    CALA(b)                                    159          186          121
                                       ------------ ------------ ------------
    Total revenues                      US$  2,382   US$  2,997   US$  2,389
                                       ------------ ------------ ------------
                                       ------------ ------------ ------------
    (a) Europe, Middle East and Africa
    (b) Caribbean and Latin America
    Network Solutions revenues
    The following table summarizes our external revenues by category of
    network solutions for each of our reportable segments for:
                                          Three months ended
                                         March 31,    March 31,
                                           2006         2005
                                       ------------ ------------
                                                     As restated
    Revenues
    Mobility and Converged Core
     Networks
      CDMA solutions                           514          534
      GSM and UMTS solutions                   633          713
      Circuit and packet voice
       solutions                               279          239
                                       ------------ ------------
                                             1,426        1,486
    Enterprise Solutions and Packet
     Networks
      Circuit and packet voice
       solutions                               339          322
      Optical networking solutions             250          237
      Data networking and security
       solutions(a)                            282          319
                                       ------------ ------------
                                               871          878
    Other                                       85           25
                                       ------------ ------------
    Total revenues                      US$  2,382   US$  2,389
                                       ------------ ------------
                                       ------------ ------------
    (a) Includes US$175 and US$203 of revenue from our enterprise customers
        for the three months ended March 31, 2006 and 2005, respectively.

Contact:

For further information: Media, Patricia Vernon, +1-(905)-863-1035,
patricve@nortel.com; Investors, (888)-901-7286, +1-(905)-863-6049,
investor@nortel.com

Plus de actualités: Nortel Networks
Plus de actualités: Nortel Networks
  • 02.06.2006 – 22:49

    Nortel Declares Preferred Share Dividends

    Toronto, Canada (ots/PRNewswire) - The board of directors of Nortel Networks Limited today declared a dividend on each of the outstanding Cumulative Redeemable Class A Preferred Shares Series 5 (TSX: NTL.PR.F) and the outstanding Non- cumulative Redeemable Class A Preferred Shares Series 7 (TSX: NTL.PR.G). The dividend amount for each series is calculated in accordance with the terms and conditions applicable to ...

  • 02.06.2006 – 22:18

    Nortel to File and Report First Quarter 2006 Financial Results

    Toronto (ots/PRNewswire) - Nortel Networks(x) Corporation (NYSE/TSX:NT) today announced that in conjunction with its expected filings early next week of its and Nortel Networks Limited's ("NNL") first quarter of 2006 Quarterly Reports on Form 10-Q and corresponding Canadian filings, the Company will issue a press release (which will serve as its and NNL's status update pursuant to the alternate information guidelines ...

  • 30.05.2006 – 10:06

    TeleCable, Nortel Provide Cajastur Savings Bank with Secure Private Network

    Madrid, Spain (ots/PRNewswire) - - Single Network Carries Bank's Data, Voice, Video and Internet Access Communications Across 100 Locations MADRID, Spain, May 30 /PRNewswire/ -- Spanish telecommunications provider TeleCable is supplying Cajastur, a large regional savings bank in Spain, with Nortel(x) (NYSE: NT , TSX: NT) technology and services to ...