Nortel Networks expects its revenues in Q3 2004 to be lower than its previously announced preliminary unaudited revenues for Q2 2004. On a full year basis, the company now expects that its 2004 revenue percentage growth over 2003 will be in the mid single digits and that the overall communications equipment market will grow faster than that.
Nortel also provided an update on on-going civil litigation. In June 2004, the U.S. District Court in the Southern District of New York consolidated the 27 class action complaints that had been filed against Nortel Networks, and certain former officers. On September 10, 2004, a consolidated class action complaint was filed alleging that the named defendants (Nortel Networks, certain current directors and certain former officers) violated U.S. securities laws, including by making materially false and misleading statements.
Bill Owens, president and chief executive officer, Nortel Networks, said, “As we work through this challenging transition period, completing our restatement activity and implementing the new strategic plan for the Company, I am confident that Nortel Networks will be positioned to compete strongly in all of our markets with the right products and services as we move into 2005.”http://www.nortelnetworks.com
