UPDATE 1-Nortel Networks reports Q4 loss on accounting charge

* Q4 loss/shr $4.57 vs EPS $3.57 year ago

* Q4 revenue plunges 96 percent to $28 mln

(Adds details)

March 4 (Reuters) – Canada’s once mighty telecom giant
Nortel Networks , reported fourth-quarter loss, hurt
by a non-cash charge arising from an accounting change at its
U.S. subsidiaries it had warned about earlier.

The company had said in January that a change in its
accounting methods would result in a non-cash charge of $2.2
billion.

Nortel, which filed for bankruptcy in January 2009 and is
auctioning off its assets in an effort to pay back debtholders,
reported a net loss of $2.3 billion, or $4.57 a share, compared
with net earnings of $1.8 billion, or $3.57 a share, last year.

Revenue plummeted nearly 96 percent, to $28 million, with
declines year over year in all segments and regions.

Cash balance as of Dec. 31 was $807 million, the company
said in a statement.

(Reporting by Amruta Sabnis in Bangalore; Editing by Prem
Udayabhanu)