TORONTO – Nortel reported a second quarter loss of $1.5 billion as it continues to push through its restructuring process.
The loss includes non-cash charges of $1.4 billion related to a change in accounting for its Europe, Middle East and Africa (EMEA) subsidiaries, and commencing June 1, 2010, the financial results of the EMEA subsidiaries are no longer included in Nortel’s financial results, the company said Monday.
It reported consolidated revenues of $145 million, excluding $93 million related to discontinued operations, for the period ended June 30, 2010. Segment revenues from continuing operations were $237 million compared to $1.3 billion for the second quarter of 2009, reflecting a reduction of 81.1% primarily as a result of the business divestitures during the creditor protection process. Presentation and accounting changes may make comparisons to prior periods less meaningful, the company said.
Nortel said that it has now sold substantially all of its businesses, generating approximately $3.2 billion in net proceeds for the benefit of its creditors, and preserving 13,000 jobs for employees with the purchasers of the businesses. Its focus remains on maximizing value for stakeholders, including the provision of transition services to purchasers, assessing strategic alternatives to maximize the value of its extensive intellectual property portfolio, sale of remaining assets, wind down of global operations, on-going cost reduction, and other significant restructuring matters.
