Nortel executives couldn't give a timetable for the review's completion. To help speed the process, the company has brought in Ernst & Young to provide advisory services and additional accounting resources.
In addition, Nortel reiterated that it expects to report approximately a 50 percent reduction of previously reported earnings for 2003. The company also said it will report a loss for the first half of 2003, whereas it previously announced a profit for the period.
Owens said Nortel expects no material impact to previously announced revenue figures or the company's cash balance.
At the end of April, Nortel fired President and CEO Frank Dunn and several other executives amid the independent review, which began in the fall.
The U.S. Securities and Exchange Commission and the Ontario Securities Commission have launched investigations into Nortel's finances. In May, the company also received a subpoena to produce documents for a federal grand jury in connection with an ongoing criminal investigation by the U.S. Attorney's Office for the Northern District of Texas, Dallas Division. In addition, 27 class-action lawsuits are pending against Nortel in the United States.
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