Nortel Networks, one of the world's largest makers of telecoms equipment, said today it would miss by about two weeks its end of October deadline to release long-awaited restated financial results.
Nortel, whose accounting scandal has drawn regulatory and criminal investigations, said it will file restated results for 2003 and detailed numbers for the first half of 2004 by mid-November due to the complexity of the work involved.
Because of the delay, Nortel does not expect it will file third-quarter results until mid-December, but will release limited, preliminary, unaudited third-quarter numbers by the end of November.
The restatement is forecast to increase previously announced annual revenue by about 7 per cent in 2001, 1 per cent in 2002, and 3 per cent in 2003, due to timing issues, Nortel said.
As previously announced, the restatement is also expected to reduce 2003 net earnings by 50 per cent, resulting in lower net losses for 2001 and 2002.
About two-thirds of the 2003 net earnings reduction will affect the first half of the year, down from a previous estimate of three-quarters.
The net income reductions are expected to equally impact continuing and discontinued operations. Previously, Nortel said a substantial impact would affect continuing operations.