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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: DTC who wrote (13697)	1/14/2004 2:12:28 PM
From: lnkennedy	Respond to of 14638

progress is frequently measured in inches (and quarterly). Neal Nortel Trends Changed To Stable From Negative: DBRS DOW JONES NEWSWIRES TORONTO -- Dominion Bond Rating Service Ltd. has returned the trends of Nortel Networks Corp. (NT) and Nortel Networks Ltd. to stable from negative. In a news release, the ratings agency said this reflects the ease in the company's downward slide in revenues and earnings, and improved cash flow. As well, more recently, the ongoing uncertainty about future prospects has eased, DBRS noted. After a long downturn in capital spending in the telecommunications sector, there are now indications that telecommunications companies will undertake capital projects selectively in 2004 and beyond, DBRS said. It expects many capital projects will be completed over the next several years and the amounts spent on an annual basis will still be lower than the levels seen in prior years. While Nortel's revenues aren't expected to grow year-over-year for 2003, its downsizing and cost containment programs helped it restore margins to more traditional levels, DBRS said. During 2004, Nortel should finally see some top-line growth and positive cash flow from operations, it noted, adding that new revenue should be driven by wireless growth and new IP telephony projects. As a result, liquidity issues from ongoing operations should remain a secondary concern over the near term. At present, liquidity appears adequate, with about $3.6 billion in cash-on-hand (at September 30, 2003) and $750 million in bank lines, DBRS said. However, liquidity could decline further with the remaining restructuring costs and any new vendor financing, it noted. Company Web Sites: dbrs.com and norteletworks.com -Wendy Tsau, Dow Jones Newswires; 416-306-2100 Updated January 14, 2004 12:27 p.m.