PBX Guru Sees Sun Behind Cloudy Nortel Filing

摘要

For enterprises that rely on Nortel, things aren't as grim as the company's latest annual filing with the Securities & Exchange Commission indicates, asserts one of the telecom industry's leading consultants. The 358 pages of Nortel's 10-K, filed with the SEC on April 28, reads like a collection of tales by Edgar Allen Poe. Still reeling from accounting scandals beginning in 2003, the company reported a loss of $2.6 billion on $10.5 billion in annual revenue during its 2005 fiscal year, which ended Dec. 31. 2005. It let go of nearly 10% of its workforce and is in default on a $1.3 billion, one-year credit facility. In addition, Nortel is preparing to pay a $575 million class action settlement to end a lawsuit mounted by sharedholders, though roughly half of the amount appears to be covered by insurance. Additionally, Nortel is facing investigations by the SEC, federal prosecutors in Texas and Canadian authorities.