Nokia's Q1 2012 financials: $9 billion in sales can't stop a $1.7 billion loss

Nokia's released the bundle of spreadsheets that comprise its 2012 Q1 financials, just a week after it acknowledged that it would make a loss, despite bullish sales of the new Lumia 900. The numbers reveal that the company had net sales of €7.4 billion ($9.7 billion), down from €10.4 billion ($13.6 billion) at the start of last year. Net sales are down 30 percent year-on-year, which means the company's posting a loss of €1.3 billion ($1.7 billion) for the first three months of 2012. That loss is broken down as €772 million to restructure Nokia Siemens Networks, €101 million to restructure the Devices & Services and Location & Commerce departments, principally in shedding employees and relocating its factories to Asia. It had forecasted an operating margin of three percent below "break even," and says it's likely to remain that way well into the second quarter.

Stephen Elop pointed out that much of the loss is due to both increased competition and the costs of restructuring, but also seemed to tacitly confirm rumors we'd heard that UK carriers have been resistant to Nokia's new direction, saying that establishing momentum in the country has been "challenging." However, it's still promising to arrest the slump and in a statement to Moody's on Monday, the company pledged that it was prioritizing "cash conservation" exercises, although its liquid cash reserves have fallen 24% in a year, meaning that the company's only got €4.8 billion ($6.3 billion) put aside for a rainy day.


http://www.engadget.com/2012/04/19/nokia-q1-2012/

-----------------------------------------------------------------------------

Not good for Nokia.. the mobile carriers are also not to convinced with the new Nokia: http://uk.reuters.com/article/2012/04/17/uk-nokia-telcos-idUKBRE83G08Z20120417

Now that's a bit of a sting aint it!

Hope they manage to turn around enough to make profit again before they really get into trouble.

Oh, once you were so big...

Selnor's viral marketing did not work as well as expected :(

Msft's earnings are coming later today..... We will see about the massive growth that some of the msft fans are expecting, but whatever

Regardless of how much they were paid by microsoft, they should never have chosen windows phone over android. If they were using the android operating system they would be up there with Samsung at the top of the tech world profits. Oh well, im sure they can recover..

This.

Nokia was the master at selling low end hardware but for whatever reason, the windows phone thing has increased its costs and pricing, which is much more important on the low end

Considering the fact that only one (one!) Android vendor is growing its bottom line right now, I'm not convinced that Nokia would be doing any better as the latecomer to the Android party. Keep in mind that companies like Motorola and HTC have been developing Android phones for years now and are well experienced with the platform, yet they're both losing ground in the market.

You keep thinking that 3-6% is good, when compared to msfts big competitors like apple and google it isnt at all.  This slow growth is going to make msft less competitive in the future, mark my words sir.

Edit: 6% revenue growth fo same quarter year over year sucks.  I'm sorry but msft is looking less magnificent all the time, and soon it will be forced our of smartphones, which will reduce profits from Bing as well