Reliant FORM 10-K manual Nortel Networks Corporation

NORTEL NETWORKS CORPORATION

Consolidated Statements of Operations for the years ended December 31

(millions of U.S. dollars, except per share amounts)		2003		2002		2001
			As restated *		As restated *
Revenues	$	10,193	$	11,008	$	18,900
Cost of revenues		5,852		7,103		14,612
Gross profit		4,341		3,905		4,288
Selling, general and administrative expense		1,939		2,553		6,111
Research and development expense		1,960		2,083		3,116
In-process research and development expense		–		–		15
Amortization of intangibles
Acquired technology and other		101		157		806
Goodwill		–		–		4,058
Deferred stock option compensation		16		110		248
Special charges
Goodwill impairment		–		595		11,426
Other special charges		284		1,500		3,390
(Gain) loss on sale of businesses and assets		(4)		(21)		138
Operating earnings (loss)		45		(3,072)		(25,020)
Other income (expense) — net		445		(5)		(506)
Interest expense
Long-term debt		(181)		(220)		(208)
Other		(28)		(52)		(103)
Earnings (loss) from continuing operations before income taxes, minority interests and equity in net loss of associated
companies		281		(3,349)		(25,837)
Income tax benefit (expense)		80		468		2,751
		361		(2,881)		(23,086)
Minority interests — net of tax		(63)		5		(34)
Equity in net loss of associated companies — net of tax		(36)		(17)		(150)
Net earnings (loss) from continuing operations		262		(2,893)		(23,270)
Net earnings (loss) from discontinued operations — net of tax		184		(101)		(2,467)
Net earnings (loss) before cumulative effect of accounting changes		446		(2,994)		(25,737)
Cumulative effect of accounting changes — net of tax		(12)		–		15
Net earnings (loss)	$	434	$	(2,994)	$	(25,722)
Basic earnings (loss) per common share
— from continuing operations	$	0.06	$	(0.75)	$	(7.30)
— from discontinued operations		0.04		(0.03)		(0.78)
Basic earnings (loss) per common share	$	0.10	$	(0.78)	$	(8.08)
Diluted earnings (loss) per common share
— from continuing operations	$	0.06	$	(0.75)	$	(7.30)
— from discontinued operations		0.04		(0.03)		(0.78)
Diluted earnings (loss) per common share	$	0.10	$	(0.78)	$	(8.08)
Dividends declared per common share	$	–	$	–	$	0.0375

* See note 3

The accompanying notes are an integral part of these consolidated financial statements

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