Smartphone maker Nokia just may be making its way back to profitability, if its third-quarter financial results are anything to go by when compared to previous quarters. The company reported an operating loss of €576m, which is less than what it experienced in the previous two quarters.
Nokia’s operating loss in Q2 amounted to €826m and in Q1 reported an operating loss of €961m. The recent financial results, coupled with Nokia’s cost-cutting measures in the past few months that have included thousands of layoffs and the closure of facilities, may indicate its efforts to limit losses are working.
Nokia also reported a 19pc year-on-year and 4pc quarter-on-quarter reduction in Q3 revenue of €7.2bn.
The company shipped more than 2.9m Lumia devices in Q3, and it ended the quarter with gross cash of €8.8bn and net cash of €3.6bn.
“As we expected, Q3 was a difficult quarter in our Devices & Services business; however, we are pleased that we shifted Nokia Group to operating profitability on a non-IFRS basis,” Nokia CEO Stephen Elop said.
“In Q3, we continued to manage through a tough transitional quarter for our smart devices business as we shared the exciting innovation ahead with our new line of Lumia products.
“In our mobile phones business, the positive consumer response to our new Asha full touch smartphones translated into strong sales. And in Q3, our mobile phones business delivered a solid quarter with sequential sales growth and improved contribution margin,” Elop added.
Elop also said that while transitioning Nokia remains the focus, “we are determined to carefully manage our financial resources, improve our competitiveness, return our Devices & Services business to positive operating cash flow as quickly as possible, and ultimately provide more value to our shareholders.”