March 15, 2004 Toronto--Nortel Networks has placed its Chief Financial Officer Douglas Beatty and Controller Michael Gollogly on paid leave of absence pending completion of an independent review being undertaken by the company's audit committee.
The company announced the appointments of William Kerr as chief financial officer and MaryAnne Pahapill as controller on an interim basis. The appointments are effective immediately.
The independent review is examining the circumstances leading to the restatement of Nortel Networks financial statements, which was announced in October 2003. The Company announced on March 10, 2004 that as a result of the work done to date in connection with the independent review, Nortel Networks believes it is likely that it will need to revise its previously announced unaudited results for the year ended December 31, 2003, and the results reported in certain of its quarterly reports for 2003, and to restate its previously filed financial results for one or more earlier periods.
Mr. Kerr originally joined Nortel Networks in 1994 as controller. Before leaving Nortel Networks in 2001, he held a number of senior positions in the company's finance organization including senior vice-president, finance and treasurer and senior vice-president, corporate business development.
Since joining Nortel Networks in 1999, Ms. Pahapill has held a number of positions in the company's finance organization including assistant controller and, most recently, assistant treasurer.
Mr. Kerr and Ms. Pahapill have also been appointed chief financial officer and controller, respectively, on an interim basis, of Nortel Networks Limited, the company's principal operating subsidiary.
The company also announced that it and Nortel Networks Limited will each be filing today with the U.S. Securities and Exchange Commission a Form 12b-25 Notification of Late Filing relating to the previously announced delay in the filing of their respective annual reports on Form 10-K for the period ended December 31, 2003, which delay will extend beyond March 30, 2004.