Nortel Networks 8-K 2007
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) August 2, 2007
NORTEL NETWORKS CORPORATION
(Exact name of registrant as specified in its charter)
Registrants telephone number, including area code 905-863-7000
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation
of the registrant under any of the following provisions (see General Instruction A.2. below):
Item 2.02 Results of Operations and Financial Condition
On August 2, 2007, Nortel Networks Corporation (the Company) issued a press release concerning its financial results for the second quarter of 2007. Such press release is attached hereto as Exhibit 99.1 and furnished in accordance with Item 2.02 of Form 8-K.
Item 8.01 Other Events
As previously announced, in May 2007 the Ontario Securities Commission (the OSC) approved a Settlement Agreement reached by the Staff of the OSC, the Company and Nortel Networks Limited (together with the Company, Nortel), which settlement fully resolved all issues between Nortel and the OSC. The decision recognized the extensive efforts made by Nortels senior management and Board of Directors to be forthcoming and transparent in reporting significant accounting and internal control issues, and then solving them.
As previously reported, Nortel has been under investigation by the SEC since April 2004 in connection with previous restatements of its financial statements. As a result of discussions with the Enforcement Staff of the Securities and Exchange Commission for purposes of resolving the investigation, the Company concluded that a reserve should be provided. Accordingly, the Company recorded an accrual in the second quarter of 2007 in the amount of $35 million, which the Company believes represents its current best estimate for the liability associated with this matter. However, this matter is ongoing and the ultimate outcome is still uncertain.
Item 9.01 Financial Statements and Exhibits
99.1 Press release issued by the registrant on August 2, 2007.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: August 2, 2007