Nortel Networks Corp. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported net loss attributable to the company of $508 million or $1.02 per basic and diluted share on revenues of $1,045 million compared to net loss attributable to the company of $3,413 million or $6.85 per basic and diluted share on revenues of $1,595 million a year ago. The company reported operating earnings of $67 million, loss from continuing operations before incomes taxes and equity in net earnings of associated companies and equity investees of $171 million, net loss from continuing operations of $341 million or $0.69 per basic and diluted share, net cash from operating activities of continuing operations of $116 million, net cash from operating activities of $124 million, and expenditures for plant and equipment of $9 million compared to operating loss of $635 million, loss from continuing operations before incomes taxes and equity in net earnings of associated companies and equity investees of $703 million, net loss from continuing operations of $2,836 million or $5.73 per basic and diluted share, net cash used in operating activities of continuing operations of $153 million, net cash used in operating activities of $144 million, and expenditures for plant and equipment of $36 million a year ago. For the nine months, the company reported net loss attributable to the company of $3,413 million or $2.59 per basic and diluted share on revenues of $3,294 million compared to net loss attributable to the company of $3,664 million or $7.36 per basic and diluted share on revenues of $5,552 million a year ago. The company reported operating earnings of $226 million, loss from continuing operations before incomes taxes and equity in net earnings of associated companies and equity investees of $270 million, net loss from continuing operations of $766 million or $1.61 per basic and diluted share, net cash from operating activities of continuing operations of $239 million, net cash from operating activities of $221 million, and expenditures for plant and equipment of $32 million compared to operating loss of $380 million, loss from continuing operations before incomes taxes and equity in net earnings of associated companies and equity investees of $533 million, net loss from continuing operations of $2,765 million or $5.86 per basic and diluted share, net cash used in operating activities of continuing operations of $485 million, net cash used in operating activities of $478 million, and expenditures for plant and equipment of $104 million a year ago.

Nortel Networks Corp. said that keeping in view, discussions with interested parties, it will delay the auction of its global optical networking and carrier ethernet businesses. Qualified bidders now have until November 17 to submit offers for the assets. The auction was originally scheduled to be held on November 13. The firm said it expects to provide a further update on the auction process and sale of the businesses next week. Reuters reported that a spokeswoman for Ciena declined to comment on Nortel's deadline extension.

Nortel Networks Corporation announced on October 28 that in light of the current status of the Company's various divestiture activities and asset sales, it has determined, after discussions with interested parties, that it is preferable to schedule the auction in relation to the sale of its GSM/GSM-R business at a later date than initially planned. The anticipated auction date will be postponed from November 9, 2009 to November 20, 2009. Qualified bidders will be required to submit offers by November 16, 2009. As previously announced, Nortel plans to sell substantially all of its global GSM/GSM-R business by "open auction", including the transfer of specified patents predominantly used in the GSM business and granting of non-exclusive licenses of other relevant patents. Nortel also announced that it, its principal operating subsidiary Nortel Networks Limited and its other Canadian subsidiaries that filed for creditor protection under the Companies' Creditors Arrangement Act have obtained an order from the Ontario Superior Court of Justice further extending, to December 18, 2009, the stay of proceedings that was previously granted by the Canadian Court. The purpose of the stay of proceedings is to allow the Nortel companies to consummate planned sales, continue to advance in discussions with interested parties for the sale of its other businesses, continue to assess other restructuring alternatives if it is unable to maximize value through sales and file a plan of arrangement. Consummation of the transaction is subject to the satisfaction of regulatory and other customary conditions. The sale is expected to close in 2009.