Nokia reports better-than-expected 4th quarter results


One of the biggest mobile devices manufacturer in the world, Nokia, is slowly coming on it’s way. Today company revealed it’s fourth quarter results and showed some awesome progress by beating the expectations of analysts. Company reported a profit of $0.8 per share, beating the $0.6 expectations of analysts. However, the total revenue was $10.7 billion, below from the $10.55 billion expectations of analysts. Company also reported a profit of $585 million in operating expenses.

For building a strong reputation in the markets and among credit rating agencies, company is also building it’s net cash position. According to Nokia, company now has net cash of €4.4 billion ($5.9 billion). It means that company has added €800 million in the 4th quarter of it’s business year. I want to tell you that company’s net cash position has been a topic of concerns between credit rating agencies since last year.

However, regardless of improved performance, Nokia is not going to pay a dividend of $0.27 per share for 2012, as the company is trying to maintain liquidity. Windows Phone based Lumias and Symbian OS based other smartphones, which are the two main product lines of the company, performed seamlessly well during the quarter and brought $1.6 billion in sales. Company’s lower-end ‘Asha’ devices line, which is based on emerging economies like India, also performed well and 9.3 million units were sold from that line. Total sales for the 4th quarter accounted to be $3.3 billion, with device volumes of 86.3 million units. Low end mobile devices accounted for more than 50% in terms of revenue, while a whooping 92% in terms of volumes. The company also reported 4.4 million Lumia sales while 2.2 million Symbian sales. Overall company sold 79.6 million devices in the 4th quarter.

Other devices and services of the company generated €200 million in sales.The company said that it is still struggling to improve some of it’s services and reduce spendings on those services. For an instance, Location and Commercial services of the company (including mapping services) reported an operating loss of $75 million for the company. Although it is significant less than the $1.6 billion loss that happened to company in the previous year, still sales graph of those services has gone down by 9% at the point of 378 million.

Note that these numbers are far away from the sales graph of rival company Apple, who also revealed it’s results last night in which it reported 48 million iPhone sales. Samsung’s 4th quarter results are to be declared later this month.