Nokia Reports A Q4 Profit Of $585 Million
Nokia Corporation has announced their Q4 and full-year financials. Nokia Corporation has made a quarterly profit with the final three months of the year being at $585.7 million. However the company saw a $3 billion loss for 2012 overall. A large chunk of the company’s quarterly profit was from Nokia Siemens Networks’ infrastructure business, which brought in an operating profit of $334 million. Nokia’s Device business hit around $367 million in operating profit. Nokia shipped 4.4 million Lumia handsets and 2.2 million Symbian smartphones during the quarter.
Nokia will be starting 2013 with with $250 million from Microsoft and their cash reserves have increased for the first time in over a year. It is now up at $5.8 million from $4.6 billion as of the fall. The company also decided not to grant a dividend in order to keep building their cash reserves.
This is also the first time that Nokia will be paying Microsoft more than what they are receiving. Microsoft pays Nokia $250 million per quarter for “platform support payments.” In return, Nokia pays Microsoft an unspecified amount for royalties of Windows Phone. This is based on the number of phones that Nokia ships.
“Over the life of the agreement the total amount of the platform support payments is expected to slightly exceed the total amount of the minimum software royalty commitment payments,” stated Nokia. “To date the amount of platform support payments received by Nokia has exceeded the amount of minimum royalty commitment payments to Microsoft. Thus for the remainder of the life of the agreement the total amount of the minimum software royalty commitment payments are expected to exceed the total amount of the platform support payments.”This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry