Nokia Siemens Networks (NSN) has announced an operating profit of €182 million. This comes after a loss of €114 million in the last quarter. It was said that this was due to “higher sales of infrastructure equipment and slightly higher sales of services, partially offset by a decline in sales of business areas not consistent with Nokia Siemens Networks’ strategic focus.”
For those unsure what that actually means, this may help. Net sales increased by 3 per cent to EUR3.5 billion from €3.41 billion. Although sales in Europe were down the APAC region, particularly Japan, were up by around 29 per cent from last year.
Whilst the overall sales increase must be pleasing, the big benefits to the bottom line were certainly helped by NSN's vastly improved operating margin (even after one-time costs) hitting 9.2 per cent compared with 0.2 per cent last year. Operating expenses dropped by 15 per cent mainly due to lower staffing costs. NSN has achieved a headcount reduction of 14,300 since announcing planned cuts of up to 23 per cent of its workforce late last year, or 17,000 jobs.
Not surprisingly, analysts were quick to confirm earlier predictions that the company is being prepared for a sell-off. That’s assuming there is a potential buyer out there and after another poor result from one parent, Nokia, there may be second thoughts on selling the resurrected, money-making step child.