Nortel customers don't need to panic, analysts say
Nortel Networks customers: Don't panic and rip out your Nortel gear.
Nortel Networks customers: Don't panic and rip out your Nortel gear.
One major reason why Nortel Networks Corp. filed for protection from its creditors in the U.S. and other countries today was to preserve $2.4 billion in cash, which the company plans to use to provide support and service its customers, Nortel's head of enterprise sales said Wednesday.
Nortel is attempting to put the brakes on its financial free fall by seeking bankruptcy protection in the United States, Canada and Europe.
It's business as usual as Nortel seeks bankruptcy protection from creditors, according to the company's enterprise chief.
Financially struggling Nortel Networks filed for Chapter 11 in US bankruptcy court yesterday.
Nortel last week said it landed PC maker Lenovo as a customer for its virtual world business application.
Juniper has the most to gain from Nortel's tenuous financial position, according to a bulletin issued this month by investment firm Oppenheimer & Co.
It might make sense for Nortel to declare bankruptcy sooner rather than later in an effort to be in as strong a position as possible when it happens, an industry financial analyst says.
Nortel is reportedly entertaining bids from three companies, including Cisco, for its Metro Ethernet Networks business unit.
Nortel has hired lawyers to consider whether it should seek bankruptcy protection, but the company says it has made no decision to do so.
Nortel is expected to announce significant job cuts when it reports third quarter results on Monday. That would be on top of the 2,100 jobs that the company said in February it was cutting.
Nortel's decision to divest its carrier Ethernet and optical businesses was based on the company's shift to a more software-driven business model, the outgoing head of those businesses says.
Nortel Networks lowered its revenue expectations for the third quarter on Wednesday, blaming delays in delivering certain products, and said it will consider selling its metro Ethernet networking business
Nortel hopes to tackle the security of remote work with an "office on a stick," a USB drive that can link an employee's PC with a corporate VPN and keep all the information from a session encrypted.
The New York Mets will have new networking and unified communications systems in their new home, Citi Field, when they start playing baseball there next spring.