SEC Formally Probing Nortel Restatement

The Brampton, Ontario-based telecommunications-equipment maker announced some restatements last October. The last month, Nortel said it will likely need to further revise and restate previously reported financial results for one or more earlier periods.

The company said the matter had been the subject of an informal SEC inquiry and an independent review by Nortel's own audit committee.

Nortel spokeswoman Tina Warren declined to comment on the reason for the formal order of investigation and declined to provided additional details about the investigation.

Nortel has been in touch with the SEC since October 2003 and the company said it has been fully cooperating with the SEC.

Nortel makes switches, routers and other equipment for telephone carriers and data-service providers, as well as base stations and other equipment for cellular telephone networks. The company reported 2003 revenue of $9.8 billion.

Nortel shares traded Monday morning at $6.04, down 25 cents, or 4 percent, on the New York Stock Exchange.

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