Nortel to Maintain Certain Accounting for Optical Products Sales

The Canadian telecommunications equipment company said it consulted with the Securities and Exchange Commission's chief accountant office, which neither approved nor disapproved of its optical products accounting.

If the office had disagreed with the company's methods, Nortel said the changes would have had a significant impact on the company's reported revenue.

Nortel has been working to restate its results for 2001 to 2003, as well as preparing its financial report for 2003 and the first and second quarters of 2004.

The company said it received confirmation from the New York Stock Exchange and Toronto Stock Exchange that they have not begun, nor intend to begin, any suspension or delisting procedures. However, the NYSE said it may be subject to a formal listing review if Nortel does not file its 2003 report by Dec. 30.

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Nortel said it is also discussing other matters with the SEC that could affect its upcoming filings.

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