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4 days ago
in Nortel’s Margins Expected to Improve on All About Nortel
No one should be so stupid to believe Margins Improved;. after Q2 2008 CC.
Mike Z reported better margins, so why the loss tripled?
Answer is simple, deferred revenues improved margins.
How much deferred revenues Nortel will use in 2008?
I don't care, as Nortel is not clear about deferred revenues. No one knows what they are and where they are from? I remember that restatements pushed revenues into deferred revenue charts; as much as $3.5 bill+. Is NT improving current margins by recognizing revenues from the years 2000-2004,5?
One sure thing is that Nortel lied about single digit growth in 2008.
Yes lied. Analysts wanted Mike Z to admit that. Nope, he thinks he is smart by lying!
How Nortel business can grow if new orders decline with high speed?
In Q2 2008 new orders declined 25%
In Q3 we don't see any big orders at all. Nortel lost in China, Nortel lost in Vietnam, lets see if Nortel can get anything from BT or Verizon, or Sprint, or BSNL $7 bill contract....
Why Nortel thinks its OK to fool new investors into believing that Nortel is growing?
Just look at the job cuts!
It's been always true that NT's real revenues were in relation to employment!
100k employees and $30 bill in revenue
30 k employees and $10 bill in revenue
and the job cuts are not finished yet.
In Q4 2008 Nortel will have to cut yet another 3-5 k !
That's just simple math and simple logic.
You can mark my words.
Mike Z reported better margins, so why the loss tripled?
Answer is simple, deferred revenues improved margins.
How much deferred revenues Nortel will use in 2008?
I don't care, as Nortel is not clear about deferred revenues. No one knows what they are and where they are from? I remember that restatements pushed revenues into deferred revenue charts; as much as $3.5 bill+. Is NT improving current margins by recognizing revenues from the years 2000-2004,5?
One sure thing is that Nortel lied about single digit growth in 2008.
Yes lied. Analysts wanted Mike Z to admit that. Nope, he thinks he is smart by lying!
How Nortel business can grow if new orders decline with high speed?
In Q2 2008 new orders declined 25%
In Q3 we don't see any big orders at all. Nortel lost in China, Nortel lost in Vietnam, lets see if Nortel can get anything from BT or Verizon, or Sprint, or BSNL $7 bill contract....
Why Nortel thinks its OK to fool new investors into believing that Nortel is growing?
Just look at the job cuts!
It's been always true that NT's real revenues were in relation to employment!
100k employees and $30 bill in revenue
30 k employees and $10 bill in revenue
and the job cuts are not finished yet.
In Q4 2008 Nortel will have to cut yet another 3-5 k !
That's just simple math and simple logic.
You can mark my words.
1 reply
Frank Burch
You guys are so full of crap. Take one point: deferred revenue. I suppose NT is NEVER supposed to recognize the revenue and profit? Get real. You don't want them to recognize the revenue now and you didn't want them to recognize the revenue then...you REALLY just don't NT to be able to EVER recognize anything. You're just a bunch of whiners.
1 month ago
in “Challenging” = Tough Times on All About Nortel
Highlights of Q2 2008
1. Deferred revenues are decreasing fast; deferred revenues declined $580 mill ytd,
“The deferred revenue balance, as at June 30, 2008 of $2,529 million, decreased by $314 million during the second quarter of 2008 and decreased by $580 million year-to-date.”
2. New orders declined around $500 mill /future revenues/ in just q2 2008 and in my opinion it’s not only Sprint responsible for lower orders!
“Orders were $2,153 million in the second quarter of 2008, compared to $2,683 million for the second quarter of 2007, and $2,548 million for the first quarter of 2008. Compared to the second quarter of 2007, orders were primarily impacted by lower CDMA orders in North America and lower orders from the LG-Nortel joint venture.”
3. Domino effect could be next as Mike Z warned yesterday
Environment and Outlook(b)
Nortel faces a challenging business environment with increasing risk due to general macro-economic weakness, continuing competitive pressures and potential of further reduced capex spending by key North American CDMA customers.
4. Nortel plays games with investors fooling them into believing that revenues are increasing, margins are increasing; so why the loss Tripled?
Logic should be that with increased rev and improved margins loss should be smaller or profitability should be reported…
Nope, loss tripled in q2 2008
5. Another bad news was about cash
"Cash balance at the end of the second quarter of 2008 was $3.07 billion, down from $3.22 billion at the end of the first quarter of 2008. "
and
- Cash balance, as at June 30, 2008 of $3.07 billion, included an outflow of cash from operations in the quarter of $74 million.
6. Congratulations to all Bear posters on NT stock
You were just right in your research of NT stock. You protected your families and friends from investing in that gravy train going to the last station.
bears vs bulls war continue on all message boards and blogs but NT stock is one of the most entertaining. The stock is pegged at $3 bill and trading at 65 Cents pre split
There is a reason for that.
Mrs Russo resigned her CEO position after few quarters of disappointing numbers.
Will Mike Z do the same?
How Mike can reverse falling stock to protect investors?
I know
Mike will get more $$ for good margins he created_presented and even used own name for them.
My comment as above
Too bad that better margins don’t bring good fruit, what’s wrong with the numbers, Mike? Do you want to ride NT stock to zero and use AirCanada scenario?
Bears here or there will protect own friends no matter what tricks you use.
1. Deferred revenues are decreasing fast; deferred revenues declined $580 mill ytd,
“The deferred revenue balance, as at June 30, 2008 of $2,529 million, decreased by $314 million during the second quarter of 2008 and decreased by $580 million year-to-date.”
2. New orders declined around $500 mill /future revenues/ in just q2 2008 and in my opinion it’s not only Sprint responsible for lower orders!
“Orders were $2,153 million in the second quarter of 2008, compared to $2,683 million for the second quarter of 2007, and $2,548 million for the first quarter of 2008. Compared to the second quarter of 2007, orders were primarily impacted by lower CDMA orders in North America and lower orders from the LG-Nortel joint venture.”
3. Domino effect could be next as Mike Z warned yesterday
Environment and Outlook(b)
Nortel faces a challenging business environment with increasing risk due to general macro-economic weakness, continuing competitive pressures and potential of further reduced capex spending by key North American CDMA customers.
4. Nortel plays games with investors fooling them into believing that revenues are increasing, margins are increasing; so why the loss Tripled?
Logic should be that with increased rev and improved margins loss should be smaller or profitability should be reported…
Nope, loss tripled in q2 2008
5. Another bad news was about cash
"Cash balance at the end of the second quarter of 2008 was $3.07 billion, down from $3.22 billion at the end of the first quarter of 2008. "
and
- Cash balance, as at June 30, 2008 of $3.07 billion, included an outflow of cash from operations in the quarter of $74 million.
6. Congratulations to all Bear posters on NT stock
You were just right in your research of NT stock. You protected your families and friends from investing in that gravy train going to the last station.
bears vs bulls war continue on all message boards and blogs but NT stock is one of the most entertaining. The stock is pegged at $3 bill and trading at 65 Cents pre split
There is a reason for that.
Mrs Russo resigned her CEO position after few quarters of disappointing numbers.
Will Mike Z do the same?
How Mike can reverse falling stock to protect investors?
I know
Mike will get more $$ for good margins he created_presented and even used own name for them.
My comment as above
Too bad that better margins don’t bring good fruit, what’s wrong with the numbers, Mike? Do you want to ride NT stock to zero and use AirCanada scenario?
Bears here or there will protect own friends no matter what tricks you use.
1 reply
Apple
I found some answers for my nr 4 position in the Highlights
Deferred revenues
read what analysts say about that revenue.
"Some analysts questioned whether Nortel could deliver on its promises of growth.
"We are taking a more conservative approach considering that the macro environment still remains challenging," said Mark Sue, an analyst with RBC Dominion Securities.
A growing concern to some is Nortel's reliance on deferred revenue. The company booked $314-million of previously deferred revenue in the second quarter and said it will book an additional $350-million in the fourth quarter, meaning it may recognize more than $1-billion for the full year.
"The deferred revenue is being pulled off the balance sheet, and it's not quality growth or organic growth," said Kenneth Muth, of Robert W. Baird & Co. "That's where the stock is reflecting that it wasn't a clean quarter."
The deferred revenue is coming from software and service contracts signed in previous years for which Nortel hadn't defined "fair value" at time of delivery. While deferred revenue is common for equipment suppliers selling to phone companies, the amount Nortel has this year clouds both how much new business the company is generating as well as profitability. Costs of this revenue were recorded at an earlier time."
SIMON AVERY
http://www.globeinvestor.com/servlet/story/GAM....
my comment
We all remember $3.5 bill and $1.5 bill revenues removed from the years 2000-2003 as recognized too early /restatement nr2 and restatement nr3/
So that revenue became deferred revenue on Nortel's books after restatements. I guess new CFO started to recognize that revenue in 2008 in big chunks. Sure thing is that restated revenue has to be recognized on the books again as sales. As we see it would be as much as $1 bill of recognized deferred revenues in 2008 including revenues from restatements.
That's why analysts were pondering Mike to answer if Nortel is growing organically.
Will analysts accept single digit growth on paper or will they not? Does Nortel have to explain def. rev. or does she not? It's another question.
Deferred revenues
read what analysts say about that revenue.
"Some analysts questioned whether Nortel could deliver on its promises of growth.
"We are taking a more conservative approach considering that the macro environment still remains challenging," said Mark Sue, an analyst with RBC Dominion Securities.
A growing concern to some is Nortel's reliance on deferred revenue. The company booked $314-million of previously deferred revenue in the second quarter and said it will book an additional $350-million in the fourth quarter, meaning it may recognize more than $1-billion for the full year.
"The deferred revenue is being pulled off the balance sheet, and it's not quality growth or organic growth," said Kenneth Muth, of Robert W. Baird & Co. "That's where the stock is reflecting that it wasn't a clean quarter."
The deferred revenue is coming from software and service contracts signed in previous years for which Nortel hadn't defined "fair value" at time of delivery. While deferred revenue is common for equipment suppliers selling to phone companies, the amount Nortel has this year clouds both how much new business the company is generating as well as profitability. Costs of this revenue were recorded at an earlier time."
SIMON AVERY
http://www.globeinvestor.com/servlet/story/GAM....
my comment
We all remember $3.5 bill and $1.5 bill revenues removed from the years 2000-2003 as recognized too early /restatement nr2 and restatement nr3/
So that revenue became deferred revenue on Nortel's books after restatements. I guess new CFO started to recognize that revenue in 2008 in big chunks. Sure thing is that restated revenue has to be recognized on the books again as sales. As we see it would be as much as $1 bill of recognized deferred revenues in 2008 including revenues from restatements.
That's why analysts were pondering Mike to answer if Nortel is growing organically.
Will analysts accept single digit growth on paper or will they not? Does Nortel have to explain def. rev. or does she not? It's another question.
1 month ago
in DBRS Upgrades Nortel Debt Trend on All About Nortel
How it is that when Bears celebrate NT at all time lowest levels there are still Bulls who will pump NT no matter what? I see hundreds of investing red flags and don't really see those optimisticfuture profits.
NT is at 60 Cents pre split with $3 bill market cap, with falling revenues and losing money, no profits! July 16 BSNL should announce winners of their $7 bill deals. Wait and see how much Nortel can get there?
NT is at 60 Cents pre split with $3 bill market cap, with falling revenues and losing money, no profits! July 16 BSNL should announce winners of their $7 bill deals. Wait and see how much Nortel can get there?
1 reply
Apple
BSNL update
BSNL Delays New GSM Tender
JULY 23, 2008
Indian service provider Bharat Sanchar Nigam Ltd. (BSNL) has held open the bidding on its massive GSM contracts to accommodate questions from vendors, once again delaying its much-needed network expansion.
The deadline for vendors to submit their bids has been extended from July 16 to August 30 so BSNL can address more than 21,000 requests for clarification on the conditions of the tenders, a company official told the Hindu Business Line.
The tenders, issued in early May, call for the supply of 93 million subscriber lines -– 75 million GSM and 18 million UMTS –- and could be worth at least $6 billion. (See BSNL Floats New Mega GSM Tender.)
News of another delay in the carrier's network expansion is hardly surprising -- its previous attempt to award large-scale contracts was held up repeatedly and eventually resulted in a reduced contract being awarded to Ericsson AB (Nasdaq: ERIC - message board). (See BSNL Lines Up GSM Options.)
That left BSNL with a shortfall in the extra equipment needed…
More
http://www.unstrung.com/document.asp?doc_id=159821
BSNL Delays New GSM Tender
JULY 23, 2008
Indian service provider Bharat Sanchar Nigam Ltd. (BSNL) has held open the bidding on its massive GSM contracts to accommodate questions from vendors, once again delaying its much-needed network expansion.
The deadline for vendors to submit their bids has been extended from July 16 to August 30 so BSNL can address more than 21,000 requests for clarification on the conditions of the tenders, a company official told the Hindu Business Line.
The tenders, issued in early May, call for the supply of 93 million subscriber lines -– 75 million GSM and 18 million UMTS –- and could be worth at least $6 billion. (See BSNL Floats New Mega GSM Tender.)
News of another delay in the carrier's network expansion is hardly surprising -- its previous attempt to award large-scale contracts was held up repeatedly and eventually resulted in a reduced contract being awarded to Ericsson AB (Nasdaq: ERIC - message board). (See BSNL Lines Up GSM Options.)
That left BSNL with a shortfall in the extra equipment needed…
More
http://www.unstrung.com/document.asp?doc_id=159821
1 month ago
in Q2 Results: August 1 on All About Nortel
Mark Evans
as You see 3 days ago The Psychiatrist replied to my post
So where is my post?
It was here as you see.
Is my post missing or you deleted it?
Are you deleting my posts? and another question about your blog
Why did you start approving posts on publicly accessible message board?
What criteria you use to do so?
If we knew the criteria we would follow the rules in discussing NT stock where the bulls and bears should have equal rights.
as You see 3 days ago The Psychiatrist replied to my post
So where is my post?
It was here as you see.
Is my post missing or you deleted it?
Are you deleting my posts? and another question about your blog
Why did you start approving posts on publicly accessible message board?
What criteria you use to do so?
If we knew the criteria we would follow the rules in discussing NT stock where the bulls and bears should have equal rights.
1 reply
Mark Evans
Apple,
As I made clear a few weeks ago - http://bit.ly/4wEJZD - I have decided to occasionally wade into the fray to prune comments that I determine to be "objectionable" - and how I define "objectionable" is entirely my discretion given the time and effort I spend writing this blog.
Just to be clear, this isn't a "publicly accessible message board". This is a blog that I write because I enjoy it and hope it makes a positive and constructive contribution to the Nortel, telecom and investment communities. I expect everyone who decides to join in the conversation to be respectful and provide some insight. This is not a free for all bulletin board. If you want that kind of forum, I politely suggest that you go somewhere else.
If I choose to delete or modify comments, that is my decision, although I do not feel it is my position to micro-moderate. While I appreciate your enthusiasm for participating in this blog and hope you continue to do so, I suggest you take my guidance under consideration. If this isn't something you can live with, there are lots of other places to talk about Nortel.
As I made clear a few weeks ago - http://bit.ly/4wEJZD - I have decided to occasionally wade into the fray to prune comments that I determine to be "objectionable" - and how I define "objectionable" is entirely my discretion given the time and effort I spend writing this blog.
Just to be clear, this isn't a "publicly accessible message board". This is a blog that I write because I enjoy it and hope it makes a positive and constructive contribution to the Nortel, telecom and investment communities. I expect everyone who decides to join in the conversation to be respectful and provide some insight. This is not a free for all bulletin board. If you want that kind of forum, I politely suggest that you go somewhere else.
If I choose to delete or modify comments, that is my decision, although I do not feel it is my position to micro-moderate. While I appreciate your enthusiasm for participating in this blog and hope you continue to do so, I suggest you take my guidance under consideration. If this isn't something you can live with, there are lots of other places to talk about Nortel.
2 months ago
in Nortel-BSNL: Round II on All About Nortel
Apple,
The loss seems like a bit of a moving target - different places cite different figures - but I will do some digging and come back with an accurate number.
Mark
====
Mark, did you do the digging?
The loss seems like a bit of a moving target - different places cite different figures - but I will do some digging and come back with an accurate number.
Mark
====
Mark, did you do the digging?
1 reply
Mark Evans
You're right, it is a moving target. The most accurate number that I've seen suggests Nortel lost $308 million on revenue of $248-million in 2004/2005 from the BSNL contract, which was originally worth $500-million before Nortel moved to scale it back. This information comes from Nortels 2005 annual report.
Here's how Nortel explained the losses:
"The losses are primarily driven by the existing contractual terms negotiated in response to pricing pressures as a result of the competitive nature of India’s telecommunications market and an increase in project implementation costs. The time limit within which BSNL could exercise its 50% business expansion option under the contract has passed and we will not supply BSNL with products or services for this expansion."
For what it's worth, the departure of Gary Kunis as COO was much to do with the India contract. Kunis did not think it was a good idea and fought tooth and nail to get away from the deal. Owens, however, was adamant about Nortel doing business in China.
Here's how Nortel explained the losses:
"The losses are primarily driven by the existing contractual terms negotiated in response to pricing pressures as a result of the competitive nature of India’s telecommunications market and an increase in project implementation costs. The time limit within which BSNL could exercise its 50% business expansion option under the contract has passed and we will not supply BSNL with products or services for this expansion."
For what it's worth, the departure of Gary Kunis as COO was much to do with the India contract. Kunis did not think it was a good idea and fought tooth and nail to get away from the deal. Owens, however, was adamant about Nortel doing business in China.
3 months ago
in Analyst Day, Hurray! on All About Nortel
Maybe someone will ask Mike Z about PBT once again and the impact on expected revenues in 2008-2009.
Nokia Simens is out of that market.
NSN and NT were the engines to push PBT into markets.
Today NSN is out!
read
But the CEO was prepared to comment on PBT: Siemens was one of the British carrier's named PBT suppliers that is now looking at a near-empty order book following BT's decision last week to switch its focus to MPLS. (See PBT Sidelined at BT.)
While Nortel Networks Ltd. (NYSE/Toronto: NT - message board) is focusing on PBT opportunities with other carriers, Beresford-Wylie is unfazed by BT's decision. (See Nortel: There's More to PBT Than BT.)
"Some of my guys were saying a year ago that it wasn't worth pursuing, and it seems they were right." And Scholz added that it is no longer an area of R&D focus for NSN. "We considered it and decided to focus on MPLS," stated the CTO bluntly.
-----
http://www.lightreading.com/document.asp...
btw
Mark E, are you avoiding talking about PBT&Nortel, BSNL&Nortel?
So many new developments and you are just comfortably silent.
Nokia Simens is out of that market.
NSN and NT were the engines to push PBT into markets.
Today NSN is out!
read
But the CEO was prepared to comment on PBT: Siemens was one of the British carrier's named PBT suppliers that is now looking at a near-empty order book following BT's decision last week to switch its focus to MPLS. (See PBT Sidelined at BT.)
While Nortel Networks Ltd. (NYSE/Toronto: NT - message board) is focusing on PBT opportunities with other carriers, Beresford-Wylie is unfazed by BT's decision. (See Nortel: There's More to PBT Than BT.)
"Some of my guys were saying a year ago that it wasn't worth pursuing, and it seems they were right." And Scholz added that it is no longer an area of R&D focus for NSN. "We considered it and decided to focus on MPLS," stated the CTO bluntly.
-----
http://www.lightreading.com/document.asp...
btw
Mark E, are you avoiding talking about PBT&Nortel, BSNL&Nortel?
So many new developments and you are just comfortably silent.
1 reply
Apple
May 31 2008
Basic electronic equipment is being replaced in all the 101 BSNL towers set up across Jamshedpur. According to a highly placed source in BSNL’s Jamshedpur secondary switching area, BSNL was earlier using Nortel equipment, but now the department is using Ericsson equipment.
“We are replacing Nortel machinery with Ericsson equipment since the past one month. We expect the work to be over by mid-June,” said R.K. Mishra, the general manager, BSNL, Jamshedpur.
Sources said the replacement work is being carried out in full force and the disruption in connectivity was fallout of this work.
The department has to suspend the functioning of the BSNL mobile tower to carry out the work.
http://www.telegraphindia.com/1080531/jsp/jhark...
It would be interesting to know why ERICs got the job to replace NT gears at BSNL.
Basic electronic equipment is being replaced in all the 101 BSNL towers set up across Jamshedpur. According to a highly placed source in BSNL’s Jamshedpur secondary switching area, BSNL was earlier using Nortel equipment, but now the department is using Ericsson equipment.
“We are replacing Nortel machinery with Ericsson equipment since the past one month. We expect the work to be over by mid-June,” said R.K. Mishra, the general manager, BSNL, Jamshedpur.
Sources said the replacement work is being carried out in full force and the disruption in connectivity was fallout of this work.
The department has to suspend the functioning of the BSNL mobile tower to carry out the work.
http://www.telegraphindia.com/1080531/jsp/jhark...
It would be interesting to know why ERICs got the job to replace NT gears at BSNL.
