Reliant FORM 10-K manual Quarterly Financial Data Unaudited

Quarterly Financial Data (Unaudited)

		4th Quarter		3rd Quarter		2nd Quarter		1st Quarter
(millions of U.S. dollars, except per share amounts)	2003**		2002	2003	2002	2003	2002	2003	2002
Revenues
As previously reported			$ 2,525	$ 2,266	$ 2,350	$ 2,338	$ 2,788	$ 2,377	$ 2,906
As reported or restated*	$ 3,266		2,616	2,344	2,322	2,285	2,920	2,298	3,150
Gross profit
As previously reported			1,029	1,192	910	1,028	1,013	1,044	819
As reported or restated*	1,434		1,109	1,130	730	882	1,029	895	1,037
Special charges
As previously reported			178	70	1,171	(2)	361	112	463
As reported or restated*	86		269	80	1,089	(22)	295	140	442
Other income (expense) — net
As previously reported			15	100	(13)	23	(23)	4	(9)
As reported or restated*	143		(34)	148	28	60	101	94	(100)
Net earnings (loss) from continuing operations
As previously reported			(167)	130	(1,735)	38	(632)	(171)	(752)
As reported or restated*	501		(195)	88	(1,556)	(93)	(452)	(234)	(690)
Net earnings (loss) from discontinued operations
As previously reported			(1)	55	2	(1)	3	190	16
As reported or restated*	27		(99)	43	5	(8)	(62)	122	55
Net earnings (loss) before cumulative effect of accounting
change
As previously reported			(168)	185	(1,733)	37	(629)	19	(736)
As reported or restated*	528		(294)	131	(1,551)	(101)	(514)	(112)	(635)
Cumulative effect of accounting change
As previously reported			–	–	–	–	–	(8)	–
As reported or restated*		–	–	–	–	–	–	(12)	–
Net earnings (loss)
As previously reported		–	(168)	185	(1,733)	37	(629)	11	(736)
As reported or restated*	528		(294)	131	(1,551)	(101)	(514)	(124)	(635)
Basic earnings (loss) per common share
— from continuing operations
As previously reported			(0.04)	0.03	(0.40)	0.01	(0.18)	(0.04)	(0.23)
As reported or restated*	0.12		(0.05)	0.02	(0.36)	(0.02)	(0.13)	(0.06)	(0.21)
— from discontinued operations
As previously reported			0.00	0.01	0.00	0.00	0.00	0.04	0.00
As reported or restated*	0.00		(0.02)	0.01	0.00	0.00	(0.02)	0.03	0.01
Basic earnings (loss) per common share
As previously reported			(0.04)	0.04	(0.40)	0.01	(0.18)	0.00	(0.23)
As reported or restated*	0.12		(0.07)	0.03	(0.36)	(0.02)	(0.15)	(0.03)	(0.20)
Diluted earnings (loss) per common share
— from continuing operations
As previously reported			(0.04)	0.03	(0.40)	0.01	(0.18)	(0.04)	(0.23)
As reported or restated*	0.12		(0.05)	0.02	(0.36)	(0.02)	(0.13)	(0.06)	(0.21)
— from discontinued operations
As previously reported			0.00	0.01	0.00	0.00	0.00	0.04	0.00
As reported or restated*	0.00		(0.02)	0.01	0.00	0.00	(0.02)	0.03	0.01
Diluted earnings (loss) per common share
As previously reported			(0.04)	0.04	(0.40)	0.01	(0.18)	0.00	(0.23)
As reported or restated*	0.12		(0.07)	0.03	(0.36)	(0.02)	(0.15)	(0.03)	(0.20)

*As discussed in note 3 to the accompanying consolidated financial statements and Management’s Discussions and Analysis of Financial Condition and Results of Operations — Nortel Networks Audit Committee Independent Review; restatements; related matters, the unaudited quarterly financial data for the first three quarters of 2003 and all of 2002 have been restated. A comparison of previously reported and restated unaudited quarterly financial data is presented in the tables above.

**The fourth quarter ended December 31, 2003 had not been previously reported.

See notes 4, 7 and 10 to the accompanying consolidated financial statements for the impact of accounting changes, special charges and acquisitions, divestitures and closures, respectively, that affect the comparability of the above selected financial data. Additionally, the following significant items were recorded in the fourth quarters of 2003 and 2002:

•During the fourth quarter of 2003, revenue of $300 and gross profit of $186 was recorded related to sales of Enterprise Networks products that had been previously deferred until software revenue recognition criteria were met. The gross profit impact was partially offset by an incremental Optical Networks inventory provision of $119. Also during the fourth quarter, bad debt recoveries of $69 were recorded as a reduction to selling, general and administrative expense.

•During the fourth quarter of 2002, bonus and fringe benefit estimates were revised which reduced operating expenses by $33 and $101, respectively.

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