Nortel Networks Corp hopes to be able to reveal preliminary results for the first two quarters of the current financial year in August 19 as it moves towards the end of a huge task of restating its figures for the past three years.
Staff at the troubled telecoms equipment maker will also hear details of another round of cost-cutting, as margins are under pressure despite an improvement in market conditions that has led it to expect to grow faster than the market, which it forecast would expand in the low to middle single digits.
Analysts polled by Reuters Research expect Nortel to show earnings per share of $0.02 cents in the first quarter on revenue more than 7% higher than last year’s level at $2.55bn. For the second quarter, they are looking for earnings per share of $0.03 on revenue of $2.64bn, 13% up on the previous year.
Nortel’s directors have also set up a special committee to examine claims that former directors and officers caused the company to engage in unlawful conduct, caused it to issue false statements and violate the law. The allegations came in a letter from lawyers acting for shareholders and demands that Nortel seek to recover damages.