Nortel Networks Corp. (NNC) announced that on October 1, 2012, Jaylnn H. Bennett and David I. Richardson provided notice of her resignation as a Director of the company and its principal operating subsidiary, Nortel Networks Ltd. (NNL). On October 2, 2012, Gregory R. Cote provided notice of his resignation as a Director of the company and NNL. On October 2, 2012, Allan Bifield provided notice of his resignation as Senior Vice-President, Corporate Services and Chief Financial Officer of the company and its principal operating subsidiary, NNL. The resignations are not as a result of any disagreement with NNC or NNL, and is effective October 3, 2012 upon the issuance of an order on same date from the Ontario Superior Court of Justice further extending the powers of Ernst & Young Inc., the court-appointed monitor in Nortel's creditor protection proceedings under the Companies' Creditors Arrangement Act (CCAA) by authorizing and empowering (but not obligating) the Monitor to exercise any powers which may be properly exercised by a board of directors of NNC, its principal operating subsidiary Nortel Networks Limited and its other Canadian subsidiaries that filed for creditor protection under the CCAA.

On September 21, 2012, Clarke E. Glaspell provided notice of his resignation as Controller of Nortel Networks Corp. and its principal operating subsidiary, Nortel Networks Ltd. (NNL) effective September 21, 2012. Mr. Glaspell's resignation is not as a result of any disagreement with the company or NNL. His resignation is in connection with the decision by Ernst & Young Inc., the court-appointed monitor in Nortel's creditor protection proceedings under the Companies' Creditors Arrangement Act (CCAA), after taking into account several factors arising from the advanced stage of the CCAA proceedings, that the expense and resources required to comply with the registrant's and NNL's quarterly and annual public reporting requirements can no longer be justified from the standpoint of the best interest of their creditors.

Nortel Networks Corp. announced unaudited consolidated earnings results for the second quarter and six months ended June 30, 2012. For the quarter, operating loss was $26 million compared to $39 million for the same period a year ago. Loss from operations before incomes taxes was $126 million compared to $103 million for the same period a year ago. Net loss was $128 million compared to $105 million for the same period a year ago. Net loss attributable to the company was $131 million compared to $115 million for the same period a year ago. Net loss per share, basic and diluted was $0.26 compared to $0.23 for the same period a year ago. Net cash used in operating activities was $35 million compared to net cash generated from operating activities of $64 million for the same period a year ago. For the six months, revenues were $1 million compared to $21 million for the same period a year ago. Operating loss was $52 million compared to $55 million for the same period a year ago. Loss from operations before incomes taxes was $180 million compared to $206 million for the same period a year ago. Net loss was $187 million compared to $207 million for the same period a year ago. Net loss attributable to the company was $194 million compared to $220 million for the same period a year ago. Net loss per share, basic and diluted was $0.39 compared to $0.44 for the same period a year ago. Net cash used in operating activities was $86 million compared to net cash generated from operating activities of $14 million for the same period a year ago.