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Nortel Provides Estimated Unaudited Results for Q1, Q2 and Q3 2004 and Years 2001, 2002 and 2003.

Article Excerpt
TORONTO -- Nortel Networks Corporation (NYSE:NT)(TSX:NT) today announced limited estimated unaudited financial results for the third quarter of 2004, and updated limited estimated unaudited results for the first and second quarters of 2004 and for the years 2001, 2002 and 2003 prepared in accordance with United States generally accepted accounting principles. These estimated results are subject to audit or review by the Company's external auditors and the other limitations outlined below.

The Company and NNL continue to work on the restatement of their financial results for each fiscal quarter in 2003 and for the years 2002 and 2001, and the preparation of their financial statements for the year 2003 and the first, second and third quarters of 2004. As previously announced, the Company expects that it and NNL will commence to file these statements and related periodic reports on January 10, 2005, and in conjunction with the filings the Company anticipates holding a conference call. Therefore, the Company will not be holding a conference call to discuss the contents of this release.

Q3 2004

Estimated unaudited revenues in the third quarter of 2004 were approximately US$2.3 billion and the Company estimates an unaudited net loss per share in the quarter of US$0.06. The net loss per share in the quarter included approximately US$0.03 per share for the majority of the investment costs associated with a wireless contract in India and approximately US$0.02 per share in special charges associated with restructuring activities in the quarter, primarily related to the work plan announced in August 2004 and updated in September 2004, which were partially offset by a gain of approximately US$0.01 per share on the transfer in the quarter of certain assets of the directory and operator services business to a joint venture in return for a minority equity interest in such venture.

"While customer support remains strong, the ongoing restatement activities and the internal restructuring and realignment programs initiated in August have impacted business performance in the third quarter but this impact is temporary. I expect Q4 2004 revenues in the range of US$2.8 billion to US$2.9 billion," said Bill Owens, president and chief executive officer, Nortel. "We are committed to driving the business forward and with the completion of much of our restatement activities and restructuring work plan during the first part of 2005, we will return to a dedicated business focus. It is important to reinforce that we have made significant progress on a number of key fronts during this quarter. In particular, we announced today that...