-
Website
http://www.allaboutnortel.com -
Original page
http://www.allaboutnortel.com/2008/11/27/seeking-alphas-nortel-bonanza/ -
Subscribe
All Comments -
Community
-
-
Top Commenters
-
Popular Threads
All Comments
However, even today, both Google Finance and Yahoo Finance list Nortel's employee headcount at 32,500.
So... which is it?
I'm just thinking that if Nortel reaches 23,700 employees, down from 32,500 (since when?), that will mean about a third of the employees being axed in 2008-2009.
It is also inferred that they intend to put through additional restructuring charges of 90 meg through the 4th Qtr. to concluded the 2007 restructuring plan, 70% of the 2008 restructuring plan and about 25% of the 2009 restructuring plan, meaning about 900 employees to go before year end that would bring their headcount down to about 30,000 from 32550 recorded as of year end 2007. Then a further reduction of 1600 next year to finalize the 2008 and 2009 restructuring plans. My thoughts are when all said and done you will be looking at 22,000 Nortel employees and 6000 in joint ventures for a total of 28000. But who knows, my rationale is as good as yours.... and headcount always goes up and down with sales numbers..
Very hard to believe your rumors, but nice try anyways.
NT went to Germany 2 weeks ago to present the whole Nortel, NSN was very interested and went to their board (it is a JV remember) and their CEO came back with their decision to move forward and dot he due diligence. The plan is to keep the Nortel brand and as a separate entity as NSN is really a JV that can;t be listed in the stock markets, with NT there is a way. The Enterprise division will have to be sold/spin off etc as NSN isn't interested in it. On the other hand Cisco has been trying to get presence in the contact center market + Microsoft is making some damage in the voice segment with their UC story and the link to NT brings some credibility, so Cisco has been planning to 2 months how to weaken that relationship. Their offer is to buy the applications (Contact center) and the voice business (remember that Steve Slattery, Ex Nortel Enterprise President is now GM of Cisco's voice division). of course NT is not happy with Cisco offer and it will likely be rejected. On the other hand the NSN angle is a viable one however the 4.6B in debt and the pension deficit is a big issue to resolve. On top of that NT has asked the Canadian Government for $1B in financial help to capitalize NT.
You can either believe it or not. Your choice. But based on all these comments makes me think it may not be worth sharing all this information.
fx 1 week ago
The board has initiated a search for a new CEO.
fx 5 days ago
stupid bastards, just wait and see. 3 weeks. i have my direct sources.
'fx' implies special effects; nothing special about gossip...--bb
Don't be fooled by such pretenders!
Tell me sir, do you get up everyday looking to act pretentious among others?
I also take umbrage at using gold gleaned from orphaned child slave laborers in African mines run by Big Oil.
"Mike Z to unveil plans for world domination via secret army of robot zombies he has been raising for the past 3 years. However Avaya has already been developing nano technology in secret to counter this. Board is pushing for Hackney to resolve the situation"
Any comments?
I haven't heard anything about a BCE-Nortel union/affiliation. To be honest, I can see how it would any sense.
Mark
Revenues were down 14% from a year earlier
Carrier network revenue was off 24% year over year
Enterprise solutions was off 8% year over year
Global services was down 6% year over year
Metro ethernet was down 12% year over year.
Orders in the quarter were $2.017 billion, down from $2.377 billion a year ago, and $2.153 billion in Q2.
the usual disinformation in a press release, must really burn shareholders (at least the ones without a hot-line into company headquarters). The bottom line is this: When Zafirovski took over as CEO in November 2007, Nortel shares traded at roughly $18 a share; today the company is a penny stock.
As Nortel Networks (NT) teeters on the edge, we might prepare to say our goodbyes by looking back on the company’s 113 years of existence.
We currently have cash and short-term investments of $2.6 billion. We believe we need under normal business conditions about $1.0 billion in cash. This does not include the cash and joint ventures in China and this $1.0 billion plus the cash requirements for China to run our business effectively.
Since September 17, [we’ve seen] a much more cautious view, and purchase orders being eliminated and/or at minimum deferred.
We are announcing a reduction of an additional net 1,300 positions… Our headcount at the end of September was just under 25,000,
The company’s cash burn rate and debt position with $1-billion of debt due in July of 2011, has some suggesting it may face bankruptcy if the situation does not improve dramatically. “While Nortel is not yet facing a liquidity problem, bond prices are signalling a restructuring with insufficient asset value to cover the debt,” Gimme Credit analyst Kimberly Noland told clients.
It’s not often that you see an analyst cut their price target on a stock to zero. But when a company looks like it may face bankruptcy, you can see why it may be a sensible choice.
Insolvency, in other words, is becoming a very real risk.
In light of the secular bear will not all good people, companies and countries put charity first and feed Africa? Whichever scenario you offer I still see no reason buy Nortel stock at this point.
Boomers by the millions will be forced to draw down on assets (declining in value) at a much faster rate than they or most economists imagined in an attempt to maintain the Boomer consumer lifestyle.
Hedge fund withdrawals are occurring as many financial services types (hedgies, mutual fund mismanagers, bankers, etc.) are seeing their livelihoods and a large share of their net wealth evaporate at an alarming amount and rate. Private schools, private clubs, religious institutions, charities and not-for-profit entities, etc., are now being negatively affected by the meltdown in financial assets, including leveraged real estate.
The deleveraging/liquidation process is still underway for hedge funds and barely just beginning in the overall US and global financial systems.
The rally from SPX 741 to 896 was the obligatory bear market rally of ~20% (~$1.7T addition to market cap), so a correction of at least half that rally is quite common; but so is a test of the low or lower lows.
http://globaleconomicanalysis.blogspot.com/2008...
Excuses, excuses, excuses…
When the “World Classers” established their roadmap 2-3 years ago the global economy was booming. It is those early and huge miss-steps (bad hires, wrong strategy, stubborn convictions about retaining 3 different markets, etc. etc. etc.) that set the wrong course for Nortel and its subsequent and continued demise.
Had they listened to sound advice from top and friendly Wall Street power brokers telling them to do the right things, along with numerous industry insiders with equally impressive backgrounds and experiences and equally concerned about Nortel’ ability to operate in an increasingly competitive global stage in 3 different markets that lacked synergies (components, channels, margins, etc.) Nortel could have escaped the current economic crisis or, at the very least, used it as a good excuse.
Regrettably and very sadly, they don’t have that option; their precarious position is self-created. They can’t even articulate their vision: ‘What is Nortel?’ (Note: Global leader in communications is sooooooooo last century)…-- bb
Vision is never been my problem and I have pretty short hands anyway. I agree with you on the global crisis; that is not the core of the argument (or discussion herein).
Nortel should have DUMPED their entire wireless portfolio, which would have strengthen both their balance sheets as well as focus. That is what Wall Street analysts told them and, in this case, those analysts were correct.
Instead Nortel got a self-promoting yoyo that never had any wireless experience talking about WiMax, 4G and LTE. The blind leading…A better balance sheet (CDMA would have fetched a lot of money form PE firms two years ago); a sharpened focus on Enterprise (a good margins biz) and Metro-Ethernet (futures) would have put Nortel into a whole different position today. Now, they need to sell a key jewel and are setting the company for an acquisition or a ‘merger’. They had their chances and blew them all!
Got to know your limitations otherwise the competition will exploit them (and they are)…--bb