Nortel’s Positive P.R. Assault

Are Nortel’s senior executives spending any time in the office these days? It’s difficult not to get the impression they’re hanging out outside newsrooms or “accidently” bumping into journalists at the local watering hole. The latest Nortel executive to chat up the media is Dion Joannou, who heads up the company’s North American operations. He sat down for a Q&A with Investor’s Business Daily. There’s nothing terribly enlightening but Joannou does offer up a frank quote about Nortel’s troubles before CEO Mike Zafirovski arrived on the scene. “We have a great history and heritage of innovation, but we were starting to lose some relevance in technology”. To be honest, it’s refreshing to see an executive own up to what went down in the past rather than simply reading off the script.

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2 Responses to “Nortel’s Positive P.R. Assault”

  1. Observer Says:

    Honesty would indeed be refereshing considering the lies by ommission where it seems they are trying to move forward using reverse.

    Honesty is a pressing requirement towards re-establishing credibility, sure, but the bad news is obvious and undeniable to give them any great degree of merit here, presenting financials like a sales flyer on their web site since revised Q205 given the shattered optimsim of so many predecessors. Optimsim contrary to the obvious would be a another detrimental contradiction to the position they with admittedly no easy fixes/miracle/tall mountains to climb/etc. They contradicted long boasted R&D cuts, Putian, Huawei, Neptune, and so much more. Any long awaited plan should at least disclose what they will try to compete with given exsisting patents and core business than claim directionless to cut product after exhausting assets to the point of selling business. To be honest in their struggles might benefit the company more than those still running it =)

    Taking measures to ensure it will not happen again is also neccessary requirement of restoring credibility. Well it has indeed happened again given their 2004 and 2005 overstating. This leads me to ask just how many “difficult to find” are still there! They even initially downplayed dramatic revisions by the week that wound up double, adding no guarantees in further surprises to boot! This was a benefit in claiming profit on their financials by reducing shareholder liabilities which strikes me as coincidental as repairing internal controls by 2008 when 1.8B debt must be coincidentally addressed. I also question why controls were extended to years from months and why they were so reluctant to chase past officers even after repeated requests. Too many ongoings in it won’t happen again with too little results adding insult to inmury with “no guarantees”. Ethics officer and new internal methods of shuffling financials impresses me little.

    I notice how all CEOs love being Nortel CEOs though with their ongoing Roth envy mega-lottery management pay practices even as the company loses more every year.

    Paying a few hundred million for their initially unannounced BSNL gamble, a few hundred million for PEC’s 15M declining earnings, several hundred million in settlement shares, a few hundred million bonuses, a few hundred million diluting shares annually, a few hundred million SAP software, etc.,…. a few hundred million here, there, everywhere as they print billions in high risk bonds to further burden their negative cash flow and printing Nortel paper at a multiple of their declining under projedcted 1.6B cash by year end. ,…ha ha hee hee ho ho to zero they go… Does it matter what they say anymore? Who listens but the overly opportunistic daytraders trading it like pre-delisted Air Canada/Stelco.

    I wonder what are the board meetings like now days. =)

    We also still need more transparency to move forwards and as another required condition of restoring credibilty. Latest 8-K’s dosclosure is a total joke in anyone’s language with many ammendments in Flextronics deal where we can only infer they are getting even less and less with each ambiguous and untransparent ammendment, to be read to be believed.

    Mikey is the newly appointed target of shareholder dissatisfaction with a tanking stock value even if announcing surprises honestly, much remains suspect with me as I have expressed above. The defrauded’s rage in opposition should make the hardest criminal cowar, let alone him “cringe when ever he hears the word defrauded”. What’s changed? For the better anyways…

  2. rock samborsky Says:

    Dear Mark Evans, why do you allow this blog to be a display case for schizophrenics like observer? It’s becoming a joke. Too bad. I’m outa here.

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