ALU CFO just finished on Bloomberg (TV). Reiterated what's above -- fantastic quarter, cash flow positive, margins up, outlook strong.
Alcatel-Lucent SA, the network-equipment maker being taken over by Nokia Oyj, posted a 5 percent increase in second-quarter sales and said its free cash flow turned positive for the first time in that period since 2006.
Revenue rose to 3.45 billion euros ($3.79 billion), the Paris-based company said in a statement on Thursday. Analysts had predicted 3.44 billion euros on average, according to estimates compiled by Bloomberg. Free cash flow was 65 million euros in the period, compared with a negative 205 million euros a year earlier
Sentiment: Strong Buy
HELSINKI: Nokia, the world's No. 3 network equipment maker, on Thursday reported a surprise rise in second-quarter profits, helped by high-margin software sales and fewer low-priced contracts at its mainstay telecom network equipment business.
Finland's Nokia, which in April proposed a 15.6 billion euro take-over of its French rival Alcatel-Lucent, said operating profit at its network unit was 313 million euros ($343 million) in the second quarter, or 11.5 per cent of sales.
Nokia Oyj’s profitability at its network-equipment business improved in the second quarter as higher-margin software contributed more to sales.
The network unit’s operating margin expanded to 11.5 percent from 11 percent a year earlier and 3.2 percent in the previous three months, Espoo, Finland-based Nokia said in a statement Thursday. Morgan Stanley analysts had projected 7.7 percent. Group sales rose 9 percent to 3.2 billion euros ($3.5 billion), compared with the 3.32 billion-euro average of estimates compiled by Bloomberg.
Nokia Chief Executive Officer Rajeev Suri has the balancing act of using acquisitions to boost growth while not giving up profitability. Amid sputtering network-gear demand from wireless carriers and competition from Ericsson AB and Huawei Technologies Co., agreed in April to buy Alcatel-Lucent SA for 15.6 billion euros, a deal that’s set to double revenue and give Nokia the scale to topple its two main rivals.
The Finnish company reiterated its forecast, saying full-year operating margin at the network unit will be around the midpoint of its long-term target of 8 percent to 11 percent.
Shares of Nokia have more than doubled since the company agreed to sell its struggling handset business to Microsoft Corp. The stock fell 0.3 percent to 5.98 euros on Wednesday in Helsinki, for a market value of 22 billion euros.
The network unit accounts for most of Nokia’s sales. The company is nearing an agreement to sell its maps division to a group of German luxury-car makers, people familiar with the matter said this month. Nokia’s research and development unit licenses the company’s patents, and develops products such as the N1 Android tablet and a virtual-reality camera called Ozo.
Good Qtr for Nokia Networks.
HERE grew 25% y-o-y and 11% sequentially. I was particularly struck by this comment by Suri:
HERE continued to deliver well, again showing year-on-year sales and profitability growth. Our strategic review of that business is now in an advanced stage, and I would like to reiterate that our focus is on what is in the best interests of our shareholders and the long term future of HERE.
#$%$? Best interests of shareholders is to keep it and continue to grow it as it has been doing. 25%+
They missed on revs. 3.2 actual compared to3.32 est. Wall street will make them pay tomorrow. All tech companies that have missed on revs have been severely punished this earnings season.....
Nokia delivered strong results in the second quarter, with each of our three businesses performing very well.
I am particularly pleased by Nokia Networks, which delivered improved performance
, despite a year
year decline in net sales
on a cons
tant currency basis.
Software sales were up significantly; core
networking sales improved; we saw a reduced impact of strategic entry deals; Global Services had one of its
best quarters in the history of the company; and cost
s remained well under control.
While we expect the telecom infrastructure market to remain challenging, I believe that our disciplined
operating model and strong execution capabilities will continue to differe
ntiate us in this environment.
Additionally, we remain highly focused on reduc
ing costs and improving efficiency in order to mitigate the
impact of market conditions.
Nokia Technologies not only continued its licensing momentum in the quarter with a new agreement with LG,
but also recently unveiled OZO, a truly game
The team in “Tech” has shown
both disciplined execution in licensing and an entrepreneurial spirit in pursuing new growth opportunities.
HERE continued to deliver well, again showing year
ales and profitability growth.
review of that business is now in an advanced stage, and I would like to reiterate that our focus is on what is in
the best interests of our shareholders and the long term future of HERE.
Overall, with these results, we are well positioned to deliver
on our full
year 2015 commitments.
President and CEO
net sales in Q2 2015 of EUR 3.2 billion (EUR 2.9 billion in Q2 2014), up 9% year-on-year
(down 1% year-on-year on a constant currency basis)
Non-IFRS diluted EPS in Q2 2015 of EUR 0.09(EUR 0.06 in Q2 2014), an increase of
50% year-on-year; reported diluted EPS in Q2 2015 of EUR 0.09(loss of EUR 0.01 in Q2 2014)
Fog = for, thank u chickenlittle, but u r at ur best while plating flute...
please, play only fog...ahh...for me...Nocturnal Ecstasy lala le la le...la la le la ;e
Urban, Combes CEO made a lot of large firms very upset and mad by giving away ALU to NOK and I mean GIVE away. Those same large firms are going to continue to punish NOK for it. Even if NOK beats on every metric, I still think the share price will continue to drift lower. If they miss on any metric, NOK will get hammered. I am now out of both as of last week after I heard NOK was only going to get 2.7 B for HERE MAPS. This is a Chinese reverse merger, which means NOK is going to issue more than half of its market cap in new shares to purchase ALU diluting NOK in half, no cash. After that, NOK will do a reverse stock split to get its share price back up to normal levels, instead of share buyback. Criticize me all you want and give me many thumbs down, but if you have any profit in this stock at all, I implore you to get out. This will not end well. I know, I've rode similar ventures all the way down. I am not a pumper or a basher, just my honest concerned opinion....... :)
Viva Life in BR control room.... hehehe...if in 1 hr good news, pps 0.15 up, if bad...
going down close to new low...tratata ta ta