Nortel Sees Monday Filing

The company says fourth-quarter revenue will be $2.8 billion.
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Nortel

(NT)

reiterated its plan to file its 2003 annual report Monday, and projected fourth-quarter 2004 revenue of $2.8 billion.

The Brampton, Ont., telecom gearmaker made the comments in a press release accompanying its biweekly status report to Canadian securities regulators.

The news comes as the company undergoes a broad internal audit following a series of accounting revelations over the last year. Last year Nortel dismissed 10 top executives including former chief Frank Dunn after it uncovered more than $3 billion in misbooked sales dating back to the turn-of-the-century Internet construction boom. Many of the errors were recorded in Nortel's optical networking unit, which was posting 40% annual sales growth rates at that time.

After withdrawing its financial results for previous years in response to last year's discovery of the accounting missteps, Nortel in December filed preliminary restated results for the first three quarters of 2004 as well as the three previous years.

At the time, the company said that third-quarter revenue would fall short of Wall Street estimates but that fourth-quarter numbers would be stronger, hitting $2.8 billion to $2.9 billion. On Thursday the company confirmed that it would hit the lower end of that range.

In midday action, Nortel added a nickel to $3.41.