NT’s Q4 Results, Stock Plans

Does it surprise anyone that Nortel decided to issue its fourth-quarter results on Friday long after the markets closed? It's a class P.R./I.R. technique to avoid getting media coverage. In any event, the company said it lost $2.6-billion last yea (including $2.5-billlion make a couple pesky class-action lawsuits go away), compared with a $207-million loss in 2004. Revenue was $10.5-billion compared with $9.5-billion. Nortel also said it has adjusted $1.5-billion of revenue over the past three years – nearly $300-million more than what it had targeted just a week ago. Nortel's also found a way to get its stock price over $5: a reverse stock split that could see shareholders approve a consolidation as high as 10 for 1. If you think about about, Nortel could get its stock back to the record high of $124.50 (July 2000, John Roth's the CEO, sales are booming) by doing a 1:30 stock split.

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One Response to “NT’s Q4 Results, Stock Plans”

  1. NeilMcIntyre.ca» Blog Archive » Nortel completes latest restatement Says:

    […] Nortel released their 2005 financials Friday and completed their latest round of restatements of prior year financial results. The restatements related to revenue recognition and decreased revenues and net income because the revenue should’ve been booked in later periods. Maybe this will mark a turning point for the Canadian communications equipment company and they can regain their position as a technology leader. The fact they released these disappointing results on a Friday afternoon is of course a little trick to reduce their media exposure. Not everyone is fooled! […]

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