***NORTEL NETWORKS----WARNUNG!!!!!!!!!!!!!!!!!***** - 500 Beiträge pro Seite

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Nortel Networks Provides Update on First Quarter 2002 Performance and Takes Steps to Optimize its Financial Flexibility by Drawing Down on Bank Facility to Leverage One Year Term Loan Option
TORONTO--(BUSINESS WIRE)--April 9, 2002--Nortel Networks (NYSE:NT - news; TSE:NT. - news) announced today that it expects to report lower than expected revenues of approximately US$2.9 billion for the first quarter of 2002. The company expects to report bottom line improvements for the first quarter, compared to fourth quarter of 2001, in line with its earlier expectations. Pro forma net loss from continuing operations(a) for the quarter is expected to be approximately US$0.14 per share. Included in the pro forma net loss is an expected charge of approximately US$200 million (pre-tax) for excess and obsolete inventory, primarily related to recently completed negotiations with all of our major suppliers. Net loss per share from continuing operations, including Acquisition Related Costs and charges primarily for workforce reductions, is expected to be approximately US$0.26. With this expected performance, the company will be in compliance with all of its credit facility covenants as at March 31, 2002.

Frank Dunn, president and chief executive officer, Nortel Networks, said, ``As we indicated on February 12, 2002, customers were showing more resolve than originally anticipated to minimize spending in the near term. For the quarter, we saw limited capital expenditures by customers, resulting in a sequential decline in revenues of approximately 16 percent compared to our previous guidance of approximately 10 percent. We continue to work our business model and drive significant improvements in our bottom line performance. We are very pleased with our continued success in cash management. We are driving momentum in the market by making significant inroads with key customers as they continue to demonstrate their acceptance of our industry leading portfolio.``

Nortel Networks also announced today that it has given notice to its banks that the company will fully draw on its April 2001 US$1.75 billion bank facility and plans to exercise its one year term loan option to obtain an additional year of liquidity under the facility.

Commenting on the draw down of the bank facility, Dunn said, ``The company does not have an immediate need for these funds. However, by taking this action, we have taken advantage of the favorable terms in our current facilities rather than seeing this source of liquidity eliminated. Under the circumstances, we considered this action to be in the best interest of the company and in line with our continued efforts to optimize our financial flexibility. The funds from the bank facility will bolster our already substantial cash balance and, together with our other credit facilities, will provide us with significant financial flexibility as we continue to focus on our initiatives for regaining market momentum and profitability.``

Nortel Networks continues to manage cash effectively and expects to report a strong cash balance at March 31, 2002 of approximately US$3.0 billion. This includes approximately US$500 million in tax recoveries received during the first quarter of 2002. An additional amount of approximately US$700 million was received in early April representing the tax recovery related to a recent change in tax legislation in the United States.

The bank facility, which would otherwise expire on April 10, 2002, requires unanimous support of all 27 members of the global bank syndicate to renew and/or extend the facility. Despite the full support for an amendment of the facility by 24 banks representing approximately 95 percent of the total facility, the parties were not able to reach a satisfactory amendment agreement with the remaining three banks. As a result, the company has given notice to draw down and plans to exercise its one year term out option.

Nortel Networks plans to release its financial results for the first quarter of 2002 and comment on its outlook on April 18, 2002.

Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Metro and Enterprise Networks, Wireless Networks and Optical Long Haul Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com.

Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the severity and duration of the industry adjustment; the sufficiency of our restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; fluctuations in operating results and general industry, economic and market conditions and growth rates; the ability to recruit and retain qualified employees; fluctuations in cash flow; the level of outstanding debt and debt ratings; the ability to meet financial covenants contained in our credit agreements; the ability to make acquisitions and/or integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization in the telecommunications industry; the dependence on new product development; the uncertainties of the Internet; the impact of the credit risks of our customers and the impact of increased provision of customer financing and commitments; stock market volatility; the entrance into an increased number of supply, turnkey, and outsourcing contracts which contain delivery, installation, and performance provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the future success of our strategic alliances; and the adverse resolution of litigation. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks Corporation and Nortel Networks Limited with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks Corporation and Nortel Networks Limited disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The following notes are important to a reader`s understanding of the information contained herein, including the pro forma information:

(a) Pro Forma net loss from continuing operations is defined as

reported net loss from continuing operations before ``Acquisition

Related Costs`` (in-process research and development expense, and

the amortization of acquired technology), stock option

compensation from acquisitions and divestitures, all special

charges (which includes restructuring), any gain or loss on sale

of businesses, one time gains associated with certain investment

sales, and any associated items as included in the income or loss

of our equity accounted for investments. This pro forma measure is

not a recognized measure for financial statement presentation

under United States generally accepted accounting principles (U.S.

GAAP). Non-U.S. GAAP earnings measures (such as this pro forma

measure) do not have any standardized meaning and are therefore

unlikely to be comparable to similar measures presented by other

issuers. This pro forma measure is provided to assist readers in

evaluating the operating performance of Nortel Networks ongoing

business and each of the items listed above were excluded because

they were considered to be of a non-operational nature in the

applicable period. Investors are encouraged to consider this pro

forma measure in the context of Nortel Networks U.S. GAAP results

(a reconciliation to which will be set out when Nortel Networks
releases its first quarter 2002 financial results on April 18,

2002).

Nortel Networks, the Nortel Networks logo and the Globemark are trademarks of Nortel Networks.



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Contact:

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NORTEL IS DEAD!!!!!!

[Ducati998]

Wen interessiert Nortel noch???

YOU ARE RIGHT,NORTEL IS DEAD!

[Micky_Maus]

Alles gar nicht so schlimm, von wegen "Nortel warnt"!

2,9 Mrd $ Q-Umsatz sind ok bei diesem Aktienkurs.
Zudem wird eine 1,75 Mrd $-Anleihe plaziert. Dunn sagt, man habe derzeit keine Liquiditätsprobleme und über 3 Mrd $ in Cash.

Würde mich nicht wundern, wenn Nortel heute 5% zulegt.

[Bonifatius]

Herzlichen Glückwunsch Micky Maus,
Du solltest als Analyst an die Wall Street gehen.
Dein Treffer ist schon beängstigend. Ich glaub Du stehst auf Nortel.(Ich auch)

Gruß
Bonifatius