Nortel Networks Corp., one of the world's largest telecommunications equipment suppliers, on Friday said it had completed a revenue restatement that adjusted revenues by a total of $1.5 billion, and had filed its 2005 annual report.
Nortel said a week ago that it would add $350 million to an earlier revenue restatement forecast and would postpone filing its 10-Q and corresponding Canadian filings to incorporate the additional restated quarterly information that arose in an ongoing accounting review.
It said on Friday that it had filed its 2005 financial statements, which reflect restatements of years ended 2003 and 2004 and the first nine months of 2005. The company made total revenue adjustments of $1.5 billion.
It said that for the fourth quarter of 2005, its net loss was $2.3 billion, or $0.53 a share, compared with earnings of $102 million, or $0.02 a share in the fourth quarter of 2004. The quarter included a litigation expense of $2.7 billion, as a result of an agreement reached in principle for the proposed settlement of certain shareholder class action litigation. Revenues for the quarter were $3 billion compared with $2.5 billion the year before.
Nortel's chief executive, Mike Zafirovski, said in a statement: The restatements have been completed and we have filed the Company's 2005 Annual Report on Form 10-K. I now look forward to completing our first quarter 2006 reporting and moving back to being a timely filer.
In early March, Nortel said it would need to fix its results for the third time in less than three years, this time to correct revenue recognition mistakes. It uncovered the problems during a detailed contract review and audit of 2005 results.