Nokia (NOK) Announces Third Quarter Results

Today Nokia Corporation (ADR) (NYSE:NOK) announced its third quarter 2012 financial results. As expected, revenues fell as most Nokia smartphone fans wait for the new Lumia models using Microsoft’s new Windows Phone 8 operating system. However, results were better than expected and the price of NOK is up in pre-market trading.

The complete report with tables can be found here.

In its press release Nokia did point out some positives. Among them Nokia achieved a positive non-IFRS operating margin, its Nokia Siemens Networks’ non-IFRS operating margin “significantly improved quarter-on-quarter and year-on-year to 9.2%”, there was a strong sales start for its Asha full touch smartphone, and it still has net cash of EUR 3.6 billion (although net cash flow from operating actives was a negative EUR 429 million, of which UR 390 million in outflows was attributed to restructuring activities).

In Nokia’s press release, Nokia CEO Stephen Elop was quoted as saying “In Q3, we continued to manage through a tough transitional quarter for our smart devices business as we shared the exciting innovation ahead with our new line of Lumia products.”

As to outlook, Nokia expects its non-IFRS Devices and Services’ operating margin to remain negative citing competition and new product launch expenses, offset by a ramp up of the new Lumia products.

All this raises the stakes for the new Lumia smartphones. Unfortunately the fourth quarter will only see these phones released in a few countries and then for only part of the quarter.

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