Feeds

Nokia flogged 4m Lumias, still bled €826m this quarter

Plenty of money left in the bank, for now

Bridging the IT gap between rising business demands and ageing tools

Nokia managed to shift 4 million Lumia handsets in the second quarter of 2012, and while it didn't make money during the period, it isn't as broke as many had feared it would be.

Overall sales were down by almost 20 per cent compared to the same period in 2011, but despite predictions that cash reserves would dip below €4bn, Nokia has managed to hang on to €4.2bn to cover the cost of the "transitional period", having managed to close some facilities early and thus girded its loins for difficult times ahead.

Those 4 million Windows Phone-powered Lumias made up almost half of the 10.2 million "smart devices" shipped in the quarter, but that's down from 16.7 shipped in the same period of 2011 and still only a small proportion of the 73.5 million phones Nokia sold from April to June this year, a number which is up slightly when compared to the same period in 2011.

But despite that, Nokia's operating loss for the quarter runs to €826m, which is approaching twice what it lost in the same period last year. It's less than Nokia lost in the first three months of 2012, but the mobile business is extremely seasonable (few people buy phones in January) so year-on-year comparisons are the only useful ones.

Nokia points out that much of its spending has been on restructuring – ie, laying off staff and closing facilities – and that once one takes out all that non-recurring stuff then the loss reduces by more than half to give a non-IFRS operating loss of €327m, though applying the same formula to the 2011 figures turns them into a profit of €391m.

"Nokia employees are demonstrating their determination to strengthen our competitiveness, improve our operating model and carefully manage our financial resources," says the comment from CEO Stephen Elop. Steve also admitted that "Q2 was a difficult quarter" and that the company is "executing with urgency on our restructuring program[me]" – which is rarely a good thing.

And it doesn't look like things are going to improve any time soon. Nokia's existing Lumia range won't run Windows Phone 8, so the company reckons "the third quarter 2012 [will] be a challenging quarter in Smart Devices" as punters hold off to see what new hardware is coming, which means those cash reserves could be all important as Nokia tries to weather the storm and emerge within a few years as a very different company. ®

Application security programs and practises

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.