On Monday, Nortel Networks (nyse: NT - news - people ) placed its chief financial officer, Douglas Beatty, and controller, Michael Gollogly, on paid leave, pending an independent review of 2003 and prior financial statements. The news comes a week after the company said it 2003 results, and possibly other periods too, would likely be restated. In a research note titled "What To Do From Here," Credit Suisse First Boston said it continues "to have confidence that the magnitude of this possible restatement will be less than that experienced in December, ($122 million in revenue and $492 million in accumulated deficit)." In the view of the research house, the review is "a positive and necessary step," towards improving the company's "weak internal financial controls and processes." CSFB also speculated that the naming of Bill Kerr as an interim chief financial officer during the review process is merely a "short-term solution." The research outfit also said it believes there is no formal U.S. Securities and Exchange Commission investigation of the matter, "although the company has been in constant communication with regulators since the announcement of the original restatements in 2003." Predicting that the restatement's impact will amount to less than 1% of the company's total 2003 sales, CSFB said it was not making any changes to its revenue, earnings and cash flow growth assumptions for Nortel. The research firm also reiterated an "outperform" rating and a 12-month price target of $9 for Nortel.