Finnish telecoms equipment vendor Nokia Siemens Networks has posted a small operating profit of €3mn for the first quarter of this year despite a seasonal dip in net sales – a massive improvement from the €1bn loss it posted 12 months earlier.
While net sales decreased 5% from a year previously to €2.8bn, much of this decline can be attributed to the fact that the company has divested a significant part of its operations in the past 12 months, with nearly 12,000 employees leaving the company during this time.
In the first quarter of this year, Global Services represented just over half (51%) of net sales, a similar proportion to one year earlier, while Mobile Broadband accounted for 44% (again broadly similar), and the remainder was delivered by shuttered operations such as the IPTV assets it sold to Accenture last October.
Commenting on the results, Stephen Elop, Nokia CEO, said: “While operating in a highly competitive environment, Nokia is executing our strategy with urgency and managing our costs very well [...] Nokia Siemens Networks delivered another strong quarter and contributed to an overall improvement in Nokia Group’s cash position.”
Nokia is aiming to reduce operating expenses and production overheads at NSN by over €1bn in the 24-month period ending December 2013.