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This morning Nortel issued its financial results for the second quarter of 2008. You can see the full press release here.
Nortel CEO Mike Zafirovski and CFO Pavi Binning are hosting a conference call to go over the results starting at 8:30am ET (right now). The easiest way to listen in is to go to the related Investor Relations page right before the start of the call and listen in through the live webcast.
Bo,
I think it is about time we hear there is no layoff rumers and some real exec heads rolling. Nortel need some accountibility 3 years after this exec team took charge.
1) who is accountible for a useless marketing campign and many blogs with owners who do not respond (please stop John Rose blog because it is becoming a sad reflection of Nortel lack of engegement)
2) who is reponsible for static SG&A spend which does not seems to go down? need to see some heads rolling due to lack of management control
3) why in every quarter Nortel seems to have yet another “restructure charges”? cann’t the 6 segma and GE types predict how many “restructuring charges” they need?
4) Blaming Nortel challenges on the US market is a pathetic reason. you have a Sales VP and GMs who are supposed to look outside the US. Locking yourself to the US market tells me you have a group of leaders who are not willing to take risk and look for emerging markets. Who is going to be fired for due to lack of action in this side?
Please stop laying off people who are building the products which will make you win and instead start attracting sales talent from other companies and do some cleaning up for Execs who in 3 years did very little other than securing their own well being.
Come on Bo, some of your problems are very obvious, I think mikeZ can achive some of his 1.5B just by cleaning up the people he brought.
Hey Another Commentor - some thoughts on your comments….
Regarding looking outside the region for revenues - I think this is already happening. Several examples:
1) enterprise revenue growth was fueled by gains in EMEA and Asia,
2) the press release shows geographic breakdown of revenues. For 1H08, U.S. revenues are down YoY, however total revenues are up 7% YoY versus 1H07.
3) APAC revenues specifically are up significantly this year over 1H07, and Nortel has stated the goal to move APAC revenues from 16% of total Nortel revenue to 20-25% in the next few years.
Regarding SG&A costs - they did go down. SG&A was down QoQ and YoY (as an absolute cost and as a %) - this even as Nortel revenues are up. Mike and Pavi said there is more work to be done here, but the quarterly results showed some progress.
Restructuring charges - I believe Nortel did announce a majority of restructuring charges previously, but as these smaller new charges happen they obviously have to be recognized.
thats really awesome post really.
Bo - is there any difference with the margin targets for APAC? As someone has previously posted somewhere, I’d be a lot more interested in hearing about earnings targets by region.
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