Nortel CEO Mike Zafirovski Steps Down

Nortel Networks reported a 25% drop in second-quarter revenues to US$1.97 billion, with declines in all segments and regions and increased by 14 percent from the previous quarter. The company reported a net loss in the second quarter of 2009 of US$274 million, compared to net loss of US$113 million a year ago.

At the same time, Mike Zafirovski confirmed that he will step down from the company with immediate effect. In addition, the Boards of Directors will reduce from nine to three members: John A. MacNaughton, Jalynn H. Bennett and David Richardson, with Mr. Richardson serving as Chairperson.

"We've reached a logical departure point," said Harry Pearce, Chairman of Nortel's Board of Directors. "Mike made a commitment to see the process through the stabilization of the company, sale of its largest assets and the right plans and people to continue operating our business and serving customers. He has done so. I appreciate the commitment and passion he brought to this company since day one, including his guidance through the extremely difficult decisions we faced since filing for creditor protection. I also wish to recognize the enormous commitment and dedication of the departing members of the Board who really believed in and worked hard for Nortel."

Commenting on the results of the second quarter of 2009, Nortel President and Chief Executive Officer Mike Zafirovski said, "While we continue to be impacted by the economic environment and the Creditor Protection Proceedings, we have successfully stabilized the business since filing for creditor protection. Despite these challenges, our revenue is up quarter over quarter by 14 percent overall while our corresponding operating costs are down 15 percent resulting in strong margins. At the same time, our customer service levels remain strong."

Posted to the site on 10th August 2009