nokia Nokia posts $1 billion operating loss for Q2 2012, net cash up $1

[+Frank B. Subscriber²]

Nokia posts $1 billion operating loss for Q2 2012, net cash up $125 million

Nokia has just posted its Q2 2012 financial report, and with it reveals a total operating loss of ?826 billion (around $1 billion). The Finnish company previously warned investors that its Q2 results were likely to be "similar to or below" its enormous ?1.3 billion (around $1.6 billion) operating loss in the first quarter. Net cash actually rose by ?102 million (around $125 million) thanks to a combination of licensing payments and a hefty quarterly cheque from Microsoft.

Lumia sales reached four million? double last quarter's two million, and in keeping with Nokia's "Rolling Thunder" plan for Windows Phone. Its troubles stem from the fact that Nokia phone sales in other sectors are falling far faster than Windows Phone sales are growing. The company sold 83.7 million phones in total, up from 82.7 last quarter, but still down 4.8 million from last year's figures. Sales of "Smart Devices," which encompasses Symbian, MeeGo, and Windows Phones, dropped from 16.7 million in Q1 to 10.2 million in Q2.

Developing...

Source: The Verge

[Xerax]

While it's going pretty bad, it seems they are slowly turning things around.

[psionicinversion]

I think when wp8 comes out when more carriers will stock wp8 handsets for sale, if there as good as the current lumia line up Nokia should see sales starting to take off in the US

[Depicus]

I think when wp8 comes out when more carriers will stock wp8 handsets for sale, if there as good as the current lumia line up Nokia should see sales starting to take off in the US

Sadly that's what they said about WP7, but to be fair the success or failure of WP8 has little to do with the success and failure of Nokia - that will come in the dumb phone market and other core parts of the business (dumb phones not so great but other core areas seem to be ok)

[Bioran]

net cash up $1

That got me for a moment. :p Good to know though that things are at lease improving a little, albeit very slowly.

[thealexweb]

The situation may be starting to improve but far too slowly, the cash pile is going to run out before they return to profit and with its credit status as 'junk' borrowing won't be cheap.

[George P Global Moderator]

The situation may be starting to improve but far too slowly, the cash pile is going to run out before they return to profit and with its credit status as 'junk' borrowing won't be cheap.

That's why they're banking on more carriers stocking Lumias this time around instead of just AT&T for example. Thought t-mobile has the 710 but that doesn't make them as much money as each 900. If they can get WP8 devices up on Verizon and sprint. and not just one but a few devices, then keep expanding in the rest of the world like they have been I'd say it'll work out fine. MS will still be paying them for their mapping and localization data as well so that helps in the short term. Still it's good overall to see that they're selling more Lumias, the average analyst estimate was for 3.5-3.8 million and having come in at 4million compared to 2million in Q1 is the silver lining.

[thealexweb]

The BBC's take of the situation -> http://www.bbc.co.uk...siness-18900413

Edit: Not use if the video will work for international users :s

[simplezz]

Ouch!

[vanx]

"?826 billion (around $1 billion)" -- hmm, is that a typo and supposed to be EUR 826 million?

[.Neo]

Edit: Not use if the video will work for international users :s

It loads just fine. :)

[George P Global Moderator]

"?826 billion (around $1 billion)" -- hmm, is that a typo and supposed to be EUR 826 million?

Yeah it's a typo. In the end the loss is less than expected and it's shrinking.

[still1]

It will be interesting to see the q3 results on lumia. Sure it will bleed due to the wp8 announcement..

many will hold off on the lumia purchase.

[BajiRav]

So not much good news for Nokia but equally bad news for the likes of simplezz :p because Lumia actually sold twice the number given by that dumbass "estimate" from a few days ago.

[Manish]

Lumia actually sold twice the number given by that dumbass "estimate" from a few days ago.

Check again.

https://www.neowin.net/forum/topic/1091209-nokia-only-sold-330k-lumia-in-the-us/page__st__105__p__595016623#entry595016623

[Astra.Xtreme]

Nokia has just posted its Q2 2012 financial report, and with it reveals a total operating loss of ?826 billion (around $1 billion).

Wow, the USD isn't worth sh*t anymore, is it? :rofl:

[George P Global Moderator]

It will be interesting to see the q3 results on lumia. Sure it will bleed due to the wp8 announcement..

many will hold off on the lumia purchase.

Nokia already said that since the WP8 news sales for the Lumia have been flat to up. So the no upgrade option hasn't changed anything.

[George P Global Moderator]

Whatever the final number of Lumias sold in the US the matter is moot. Overall the total Lumia sales figure is double what it was last quarter and that says more than anything. Q3 could be flat compared to Q2 because they don't have any new devices coming though they are also spreading out into newer markets with them. Another 4-5million sold in Q3 could happen at this point with a bigger pop in Q4 and new WP8 devices.

Whatever the case, they sold more lumias than expected, and their operating loss was lower than expected. Sure it's not 100% great news but it's positive news in the middle of a tough transition for them.

[still1]

Nokia already said that since the WP8 news sales for the Lumia have been flat to up. So the no upgrade option hasn't changed anything.

They are never going to admit to that.... Next report will say it all..

[BajiRav]

Check again.

http://www.neowin.ne...#entry595016623

Great, another stupid speculation. Here is my "analysis": There are very few Nokia phones sold in the US besides WP as vast majority are the craptacular prepaid S4 devices and it is unlikely that those phones sold 300K in one quarter.

[.Neo]

Wow, the USD isn't worth sh*t anymore, is it? :rofl:

Try reading both again.

[Tom]

I feel bad for Nokia, they were slow to the smartphone market and are paying the consequences.

Nokia is responsible for so much innovation, I would hate to see that disappear.

[George P Global Moderator]

I feel bad for Nokia, they were slow to the smartphone market and are paying the consequences.

Nokia is responsible for so much innovation, I would hate to see that disappear.

I don't think they're done yet, or will be actually. The needed restructuring takes quite some time. Moving production to cheaper areas, cutting costs on parts of the business that are keeping operating costs too high. And the overall transition off of dump phones to more smartphones as well. One thing that people have overlooked is that Nokia actually ended this quarter with more cash on hand then it did last quarter iirc.

[Growled Member]

How much longer than they keep losing money?

[Raa]

Say goodnight, Nokia.