Nortel Networks

Nortel announces revised full year outlook

Phil Goldstein — Wed, 17 Sep 2008 10:58:26 -0400

In the face of a continued economic downturn, Nortel Networks has revealed a preview of its third quarter results and revised down its full year outlook.

The company said it expected third quarter revenues of $2.3 billion for the period ending September 30. However, it said it expected total annual revenue to decline two to four percent from 2007. The Toronto-based equipment manufacturer also announced that a comprehensive review of the company's entire business plan was under way to determine how it could stay competitive in a changing and increasingly saturated market.

For more:
- see this release

Related Articles:
China telecom shuffle puts Nortel in catbird seat
Nortel takes it on the chin in Q2

Cleartalk delivers CDMA to Texas markets

Sue Marek — Fri, 29 Aug 2008 11:31:48 -0400

Tier 3 operator Cleartalk has deployed a CDMA network using Nortel Networks gear in the AWS spectrum in the Amarillo and Lubbock, Texas, markets.

Cleartalk, which does business as Flat Wireless, offers flat-rate unlimited voice calling, text messaging and Web surfing.

For more:
-See this press release

Related article:
ClearTalk taps ZTE for 3G

Nortel sees slower CDMA sales

Sue Marek — Fri, 01 Aug 2008 12:36:55 -0400

Alcatel-Lucent isn't the only vendor feeling the squeeze from a decrease in CDMA sales in North America. Nortel Networks today reported second quarter revenues of $2.6 billion, up slightly from $2.56 billion a year ago. However, the company had a net loss of $113 million, compared with a net loss of $37 million a year ago. The firm blamed the losses on economic weakness, competitive pressures and a reduction in spending from key North American customers. Nortel also said that its CDMA sales were down from $494 million last year to $446 million this year. On the GSM side, revenues were up more than 11 percent to $448 million.

Nortel announced earlier this summer that it was shifting its R&D efforts to LTE and teaming with Alvarion on all WiMAX initiatives.

For more:
- see this Light Reading story
- See this WSJ story (sub. req.)

Related articles:
Alca-Lu stung by CDMA weakness
Nortel teams with Alvarion on WiMAX; focus moves to LTE

Three former Nortel execs charged with fraud

Lynnette Luna — Thu, 19 Jun 2008 11:58:28 -0400

Three former executives from Nortel Networks were criminally charged in Canada with misstating the company's financial results in 2002 and 2003, according to the Royal Canadian Mounted Police. Frank Dunn, former chief executive, along with former CFO Douglas Beatty and ex-controller Michael Gollogly were each charged seven different fraud-related counts. Article (WSJ sub. req.)

Nortel teams with Alvarion on WiMAX; focus moves to LTE

Sue Marek — Wed, 11 Jun 2008 12:04:13 -0400

When it comes to 4G, Nortel Networks is putting its R&D efforts behind LTE and teaming with Alvarion to come up with an end-to-end mobile WiMAX solution. The shift is notable because in the past Nortel has touted its extensive WiMAX patent portfolio. Now the company says it will focus its R&D on LTE where it believes demand is emerging faster than predicted.

Nortel's LTE focus is timely considering major operators such as Verizon Wireless, Vodafone and AT&T have recently said that they plan to migrate to LTE technology. Verizon has said that it is currently trialing different LTE technologies.

On the mobile WiMAX front, Nortel will work with Alvarion to combine Alvarion's radio access network technology with Nortel's core network elements, backhaul solutions and applications such as VOIP, streaming music and video. The collaboration also will include Nortel's consulting services and its network design and management expertise.

For more:
- see this press release
- see this WSJ article (sub. req.)

Related stories:
Following IPR agreement, Nortel publishes LTE rates
On The Hot Seat: Nortel's Richard Lowe

Nortel's carrier revenue climbed 21 percent

Fri, 02 May 2008 06:59:57 -0400

Nortel Networks said its first quarter revenue rose 11 percent to $2.76 billion, largely due to deferred revenue from an LG Electronics joint venture that had been projected to wrap up in the second quarter. Nortel said losses totaled $138 million, or 28 cents a share, up from $103 million, or 23 cents a share a year ago. Excluding an $88 million restructuring charge, the company said losses narrowed to $35 million.

Revenue for Nortel's carrier business, its largest unit, rose 21 percent as profits surged 68 percent; its Ethernet segment was the only one to post a drop--12 percent.

For more:
- See the Wall Street Journal story

Related:
Nortel to cut 2100 more jobs

Motorola hires Liska as new CFO

Fri, 22 Feb 2008 06:59:58 -0500

Motorola hired Paul Liska as its new chief financial officer. Liska takes over for Tom Meredith who served as the interim CFO during the past few months. Meredith will remain on the company's board, according to CEO Greg Brown.

The new CFO is tasked with managing costs while the company's handset business continues to slide as well as help structure a joint venture for networking technologies with Nortel Networks. Liska's appointment marks only the latest executive change at Motorola since Brown took the helm of the company last month. Since then CTO Padmasree Warrior left the company for the CTO post at Cisco and the head of human resources departed as well. Brown has known Liska for about ten years, according to a report in the Wall Street Journal.

For more on Liska:
- read this press release
- read this article from the WSJ

Nortel swings to a loss

Thu, 02 Aug 2007 06:59:56 -0400

Nortel Networks posted a $37 million loss in its Q2 because of lower revenue and various charges. That's down from $342 million in net income this time last year. Some of the fees that affected the bottom line include charges of $36 million for restructuring and $35 million from ongoing discussions with the SEC related to an accounting probe. The company's revenue fell 7.8 percent to $2.56 billion from $2.78 billion. Nortel had expected flat or slightly decreased revenue. The company's largest unit, its carrier business, fell 16 percent to $1.06 billion, partly because it sold its UMTS business last year.

For more on Nortel's Q2:
- read this WSJ article (sub. req.)
- and read this press release

RELEASE: Nortel CFO to resign

Tue, 06 Feb 2007 12:35:25 -0500

TORONTO, ONTARIO -- February 06, 2007 -- Nortel(1) (TSX: NT)(NYSE: NT) today announced that Peter Currie will step down as Executive Vice-President and Chief Financial Officer of Nortel and Nortel Networks Limited, effective April 30, 2007. Following that date, Mr. Currie will continue to provide advice and assistance to the Company to ensure a smooth transition. The Company has initiated a search to fill the position.

"I want to thank Peter for his very significant contribution to Nortel over the past two years," said Mike Zafirovski, president and CEO, Nortel. "Peter has successfully steered Nortel through many difficult financial issues and, in the process, has enhanced the Company's governance. In addition, he leaves behind a very strong finance organization led by a team of consummate professionals. On a personal level, I will miss his counsel and sound judgment. I and the entire Nortel team want to wish him well as he takes on new challenges."

"I believe that I have achieved at Nortel what I returned to accomplish. We have transformed the finance organization, significantly strengthened internal controls, and improved the balance sheet," said Mr. Currie. "I look forward now to pursuing other challenges and I am confident in the future success of Nortel. I want to thank my colleagues for their support and collaboration over the past few years."

About Nortel

Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

"Certain statements in this press release may contain words such as "could", "expects", "may", "anticipates", "believes", "intends", "estimates", "targets", "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 from those contemplated in forward-looking statements. For additional information with respect to certain of these and other factors, see Nortel's Annual Report on Form10-K/A, Quarterly Reports 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."

(1)Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.

Will Nortel's cost cutting work?

Tue, 28 Nov 2006 19:01:35 -0500

Nortel networks is in a pickle, as it reported its seventh loss in the last nine quarters. It's embarking on a massive cost-cutting strategy with the goal to cut costs by $1.5 billion over the next two years. The Wall Street Journal gives a good rundown of the pros and cons, as analysts are mixed about the move.

For more on the ailing company:
- read about Nortel's plan in the Wall Street Journal (sub. req.)

ALSO NOTED: Sprint Nextel rolls out more EV-DO markets; Nortel narrows loss for 3Q; and much more...

Tue, 07 Nov 2006 19:01:30 -0500

> Sprint Nextel rolled out its EV-DO network in three more markets. Article

> Nortel Networks narrowed its overall loss for the third quarter. Article

> Samsung Electronics announced a mobile convergence device it claims could replace notebook PCs in the future. Article

> BelAir Networks received certification for wireless mesh products from SpectraLink. Article

And Finally...Tin can communication goes wireless. Article

Nortel wins Rev. A deal with Verizon Wireless

Tue, 18 Jul 2006 20:01:35 -0400

Verizon Wireless announced a deal with another usual suspect, Nortel Networks, for the supply of CDMA 1xEV-DO equipment. The announcement follows a similar deal with Lucent Technologies announced last month. Nortel will begin delivering the technology in the third quarter. Is Verizon Wireless ramping up deployments to match or beat Sprint Nextel's time table? The operator has yet to give any specific projections for rollout milestones. Sprint has said it would offer commercial Rev. A services by the end of next year.

For more about Verizon's deal with Nortel:
- take a look at this release

ALSO NOTED: Nortel to cut 1,100 jobs globally; Moody's upgrades Ericsson's debt rankings; and much more...

Tue, 27 Jun 2006 20:00:41 -0400

> Nortel Networks outlined a restructuring plan that calls for eliminating about 1,100 positions globally. Article (The Wall Street Journal sub. req.)

> Moody's Investors Service has upgraded Ericsson's debt rankings. Article

> Silicon Laboratories has launched what it says is the industry's most integrated, highest performing single-chip phone for the GSM ultra low cost handset (ULCH) market. Article

> Nokia has filed suit in Beijing, China against two companies for allegedly manufacturing and selling phones copying Nokia's proprietary design of its 7260 model. Article

> Palm pays Xerox $22.5M to settle long-standing patent suit. Article

And Finally... Supermodel Naomi Campbell may take a plea bargain in her cell-phone assault case. Article

ALSO NOTED: T-Mobile to offer HSDPA in Germany soon; Motorola seeks opportunities in Japan; and much more...

Wed, 01 Feb 2006 19:00:41 -0500

> T-Mobile says HSDPA will be available in Germany this spring. Article

> Motorola looks for opportunities in Japan. Article

> Trend: Strategy Analytics says Apple's iTunes will see its share erode in light of music-ready mobile phones. Article

> Nortel Networks announced a new one-year credit financing arrangement worth $1.3 billion, which will allow the company to pay off about $1.28 billion in outstanding debts. Article

And Finally... A flock of pigeons will be outfitted with backpacks containing mobile-phone equipment that will be used to monitor air pollution. Article

Chutes & Ladders: Nortel appoints former Motorola exec as CEO

Mon, 17 Oct 2005 20:01:36 -0400

Nortel Networks' board of directors has appointed Mike Zafirovski as president and CEO. Zafirovski will take the position effective November 15. Zafirovski left his COO post at Motorola in January after being passed over for CEO. Bill Owens is stepping down as Nortel's president and CEO. Owens said the company needs a fresh face at the helm after its recent crisis, alluding to the accounting scandal that has plagued Nortel for the past 18 months.

For more on Nortel's new CEO:
- read this article from The New York Times

Andrew buys part of Nortel's location business

Sun, 28 Aug 2005 20:01:36 -0400

Andrew has acquired certain assets of Nortel Networks' wireless location business. The deal will allow Andrew to expand its Geometrix mobile location system product line for commercial, consumer, and public-safety uses. Andrew said it plans to integrate Nortel's mobile-location products, services, and associated research and development resources into its Geometrix business. No financial details of the deal were released.

For more on Andrew's deal for Nortel's location business:
- go to this story from AP

ALSO NOTED: Nortel, LG to form network JV; SF mayor continues quest for free citywide WiFi; and much more...

Tue, 16 Aug 2005 20:00:41 -0400

> Nortel Networks and LG to form a networking joint venture. Release

> San Francisco Mayor Gavin Newsome continues his push for free citywide WiFi. Article

> Trend: Camera phones could eventually replace low-end digital cameras. Article

> Smart Commentary: Competition will only get harder for Jamdat. Article

And Finally... Apple, Microsoft fight it out over an iPod-related patent. Article

ALSO NOTED: BT inks VoIP deal with Nortel; Meru partners to offer enterprise wireless VoIP; and much more...

Mon, 18 Jul 2005 20:00:41 -0400

> BT inks VoIP network deal with Nortel Networks. Article

> Wireless VoIP infrastructure developer Meru Networks is teaming with Wescon Group subsidiary Voda One, a networking and communications distributor, to offer voice over wireless LAN (VoWLAN) solutions to enterprise customers. Release

> Crisp Wireless and mobile Internet enabler Bango today launched an end-to-end software solution designed to let established brands launch mobile content services. Release

> Dupont Circle in Washington, DC, will launch free WiFi access. Article

And Finally... Movie companies experiment with Bluetooth for marketing. Article

SIPquest working with Nortel on IP multimedia client

Tue, 07 Jun 2005 20:01:35 -0400

SIP developer SIPquest says it is collaborating with Nortel Networks on an IP Multimedia Subsystem client. The SIPquest IMS software will supply client-side call control, personalization options and presence information across device, network and media types. The client will be used with the Multimedia Communication Server 5200 Application Server in continuing Nortel CMS customer trials and initial CMS deployments. SIPquest also says it will offer a full line of Converged Multimedia Clients for the delivery of next-generation, personalized services made possible by the adoption of IMS architecture.

For more details on SIPquest's convergence plans:
- read this RCR Wireless News article

ALSO NOTED: Nortel, Wireless Valley partner on wireless mesh planning; and much more...

Tue, 17 May 2005 20:00:41 -0400

> Nortel Networks, Wireless Valley partner for wireless mesh planning tool. Wireless Valley is a member of the 2005 FierceWireless Fierce 15, an annual list of the top emerging wireless companies. Release

> MVNO Boost Mobile inks a mobile game deal with Digital Chocolate. Release

> Jamdat launches Jamdat Mini Golf. Jamdat is a member of the 2004 FierceWireless Fierce 15, an annual list of the top emerging wireless companies. Release

And Finally... Boston may launch a citywide WiFi network. Article