Nortel to restate results...again

Canadian equipment vendor Nortel Networks said Thursday it will restate financial results for 2004, 2005 and the first nine months of 2006, and will make adjustments to periods prior to 2004.

The announcement does not bode well for the company, which is still getting back on track after being rocked by long running financial scandal.

The restatement will primarily correct third party calculation errors embedded in Nortel’s North American pension and post-retirement plans and revenue incorrectly recognised in prior periods that should have been deferred.

“This restatement has no material impact to our fourth quarter 2006 operating expectations or performance. During 2006, we have implemented significant remedial measures and other actions to address our internal control weaknesses. This has resulted in a substantial reduction of control weaknesses as at year end and represents a major milestone in our journey toward consistent, reliable and timely financial reporting,” said Peter Currie, Nortel executive vice president and CFO. “We will conclude the restatement and complete our regulatory filings within the timely filer period.”

Currie is due to step down on April 30.