sank 11% in heavy trading Friday as investors continued to mull over the company's latest accounting gaffe.
Nortel shocked Wall Street Thursday by announcing the
latest delay in its financial filing schedule and saying it had found $3.1 billion in additional revenue misstatements from 1999 and 2000. The stock dropped 7% on that revelation.
Thursday's surprise marked at least the fourth time Nortel has pushed back the date on which it expects to produce restated results for fiscal 2003. The company started a probe of its bookkeeping last summer.
The company said it now hopes to post third-quarter results next month and to file restated 2003 numbers by January. The company had originally aimed to post that restatement by this fall.
Observers said Nortel's inability to come up with reliable numbers has trashed the credibility of a management team that took over in the midst of a deepening accounting scandal.
Nortel stumbled into problems early this year after internal audits revealed the company had overstated 2003 earnings by $300 million. Those bogus profits were central to a round of return-to-profit bonuses that a
few observers flagged last year.
Since then, 10 executives have been forced out and the stock has lost more than half its value.
On Friday, Nortel dropped 38 cents to $2.99 on volume of 112 million shares. Average daily volume is less than a fifth of that total.