Nortel Uncovers Need for Further Revenue Adjustments
Posted April 7, 2006
RESEARCH TRIANGLE PARK, N.C. — Accounting problems at
continue with the company having to make further revisions of earning reports.
Nortel disclosed after the stock markets closed on Thursday that its ongoing financial review had uncovered more problems related to booking of revenue.
"As a result of this continuing work, the Company expects that in addition to the revenue adjustments identified in the March 10, 2006 press release, additional revenue recognized in prior periods will be restated and deferred to future periods," Nortel said in a statement. "The Company will be in a position to determine the amounts of additional revenue deferral and periods impacted upon completion of this work."
On March 10, Nortel disclosed a third revision of its earnings reports dating back several years.
The telecom gear manufacturer has been mired in financial woes since 2004, leading to the ouster of former Chief Executive Officer Frank Dunn and several other executives.