It was nice knowing you, Malcolm Collins.
Collins, who has headed Nortel's enterprise business since 2002, is
leaving the company (was he pushed or did he jump?). His departure is
part of a reorganization by Nortel to “better meet the needs of global
enterprise and carrier customers in the converged marketplace” -
whatever that means. Nortel will be split into two business units: the
enterprise and packet networks division will be headed by Steve
Slattery, while Richard Lowe, who was president of Nortel's CDMA
business, will head up the mobiity and converged networks unit. So now
that CEO Bill Owens has revamped the executive suites, how about
articulating some strategic vision?
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One Comment
I question all the abrupt departures.
The underemphasized proven Gary Daichendt who suddenly quit, amidst traditional ambiguity lacking disclosure in “differing business vision” where he was later slandered. This highly ethical and proven man was applauded for the painstaking effort he put into NT's plan yet left disheartened, pessimistic, and not confident anyone could execute his plan while happy to l;eave Nortel's politics, turmoil I assume.
Then, Cheif Legal Officer suddenly retired. I wonder if he pulled a Roth and got out of a hot kitchen before it burst into flames, or whether he too jumped or was pushed with a golden handshake or parachute.
This was all after a plea bargained board resigned in disgrace and who denied obvious red flags for cash they approved and received while rolling over on people they held close relationships claiming no one could have forseen this admitted fraud. They took this opportunity at the delayed shareholders meeting where they fixed votes to keep bonuses. Bonuses they moved 3.1 billion from earlier periods to justify/keep and yet maintain in light of CFO Currie astoundingly taking the largest block of 500K shares Sept 6th outside of any operational profit. Weak internal controls make it open season on bone us and the restated restatement , a recount of a recount, is still condemned as unreliable as they increasingly face the worst ongoing years since the mid 1990's now lacking credibility. Their numbers show they are paying the customers still willing to do business with them even more just to take their product and the future isn't rosey according to Moody's Credit Rating or their almost 70% cut in R&D.
No more business with BSNL now unless it is a 50% greater loss by contractual obligation as they are tendering out 10 times their lost leader, a 5 billion dollar bid, to lower competiors while everyone running not walking away like Cingular, British Telecom, and even Canadians like Sprint Canada or BMO ripping out its Nortel gear and replaced it with Cisco's. Seems all business is goine as of Q304 and their 12 month ship cycle is catching up. How can they forecast double digit growth with a lower Q3, are they comparing this to last year's 6 cent loss for this period?
The have rapidly decling cash and debt to pay from this and I would imagine no will finance a losing venture lket alone with unreliable financials to back it by an uncredible company that even their own Insurance company is recinding coverage for premiums based on false pretense.
They also have huge legal fees, SEC fine, class action damages in the billions to address for a case there is no better why laws are written plus debt to repay while losing business and margins. Nortel's theatrics have always proved misleading… somethings never change and in NT's case only for the worse… May I suggest they are on borrowed time.