Nokia posted dismal Q2 results, as sales of devices and services fell 5 percent sequentially and 26 percent year over year. Gross margin in Q2 was 18.1 percent, down 630 basis points sequentially primarily due to the recognition of approximately 220 million EURO of inventory related allowances in Smart Devices. Overall net sales for the company totaled 7,542 million Euros and there was a net loss of 826 million Euros. Sales of devices in all geographic regions, except North America where revenue was up from a small base.
“Nokia is taking action to manage through this transition period. While Q2 was a difficult quarter, Nokia employees are demonstrating their determination to strengthen our competitiveness, improve our operating model and carefully manage our financial resources. We shipped four million Lumia Smartphones in Q2, and we plan to provide updates to current Lumia products overtime, well beyond the launch of Windows Phone 8. We believe the Windows Phone 8 launch will be an important catalyst for Lumia,” stated Stephen Elop, Nokia CEO.
Some highlights:
- 4 million Lumia smartphone sales.
- Nokia ended Q2 with gross cash of EUR 9.4 billion and net cash of EUR 4.2 billion.
- In Q2,Nokia received a quarterly platform support payment of USD 250 million (approximately EUR 196 million)
- For Nokia’s Location business, net sales were 283 million Euro, up 2 percent sequentially and 4 percent year over year.
