Nokia reports quarterly loss that includes cash infusion from Microsoft
Nokia has released its fourth quarter financial report for 2011. While the good news is that the company is reporting the shipment of over 1 million Windows Phones, the bad news is that Nokia has experienced the third straight quarterly loss.
Nokia's revenue dropped 21% from last year and profit dropped from €884 million (about $1.1 billion U.S) to €954 (about $1.25 billion U.S.) loss. While Nokia is pleased as punch about shipping over a million Windows Phones, overall smartphone revenue dropped 38% and overall smartphone shipments dropped 8%.
On the positive, Nokia reported an infusion of €180 million ($250 million U.S.) from Microsoft in the form of platform support payments. The strategic agreement with Microsoft covers both platform support from Microsoft and minimum software royalty payments from Nokia to Microsoft. The life of this strategic agreement is expected to measure in billions of US Dollars.
Overall, Nokia's CEO Stephen Elop was pleased with the performance of their mobile phones business citing the release of the Windows Phone Lumia series (Lumia 710 and 800), introducing the series to consumers in Europe, Hong Kong, India, Russia, Singapore, South Korea and Taiwan.
With the third straight quarterly loss, Nokia's hopes are likely riding on the company's re-entry into the North American Market (with the T-Mobile Lumia 710 and AT&T Lumia 900) and the success of the Windows Phone line world wide. Additional expansion will see the Lumia Windows Phones to China and Latin American markets during the first half of 2012. Hopefully, the global distribution will stop the downhill slide and give Nokia a positive first quarter report in 2012.
You can find all the numbers and stats from Nokia's fourth quarter report of 2011 here at Nokia.com.