VoIP Systems

Signs of Growth at NSN

Despite the components shortage and business continuity issues in India that affected the whole of the major telecom equipment vendor community last year, Nokia Networks (NSN) managed to report a slight increase in full-year sales for 2010 to €12.66 billion (US$17.4 billion), driven by a stronger fourth quarter.

The vendor also reported a notable reduction in its full-year operating losses.

Table 1: Nokia Siemens Networks Q4 2010
In millions of euros Q4 2009 Q4 2010 Y/Y change Q3 2010 Q/Q change
Revenues 3,625 3,961 +9% 2,943 +35%
Reported operating profit 17 1 -94% -282 --
Adjusted operating profit* 201 145 -28% -116 --
* Excluding one-time costs and special items

Table 2: Nokia Siemens Networks Full Year 2010
In millions of euros 2009 2010 Y/Y change
Revenues 12,574 12,661 +1%
Reported operating profit -1,639 -686 +58.1%
Adjusted operating profit* 28 95 +239%
* Excluding one-time costs and special items

NSN's news comes only days after fierce rival Ericsson AB (Nasdaq: ERIC) reported strong fourth-quarter and full-year growth. (See Ericsson Q4 Sales Surge, Margins Shrink and Ericsson Reports Q4.)

The equipment vendor's figures were released Thursday as part of parent Nokia's earnings report, which showed the Finnish handset giant had reported a 6 percent increase in fourth-quarter revenues to €12.65 billion ($17.37 billion), but a 21 percent drop in net income to €742 million ($1.02 billion). (See Nokia Reports Q4.)

In its report, Nokia stated that it believes the market for mobile and fixed infrastructure and related services (such as managed services) was about the same as in 2009 (in euros), and that NSN "grew slightly faster than the market in euro terms in 2010."

That growth will have come from the strategic focus on reclaiming market share in 2010. (See NSN Targets Greater Market Share and NSN CEO: Don't Write Our Obituary.)

And the vendor expects its first-quarter revenues to be in the range of €2.8 billion to €3.1 billion ($3.84 billion to $4.25 billion), which would be an improvement on the first three months of 2010. (See NSN Shrinks Again, But Q2 Looks Rosier.)

Q4 details
NSN's fourth-quarter revenues of nearly €4 billion ($5.5 billion) were boosted by marked improvements in Greater China and Asia/Pacific, and an overall improvement in component availability (something that should help NSN's rivals too).

The company's Global Services division contributed €1.8 billion ($2.4 billion) in revenues, or 45 percent of the quarter's total.

NSN noted, though, that margins were affected by "general price pressure on certain products, a higher proportion of lower margin products in the business mix and to some extent project execution related challenges in the Middle East and Africa."

— Ray Le Maistre, International Managing Editor, Light Reading

optiwizard 12/5/2012 | 5:14:32 PM
re: Signs of Growth at NSN

Yes, Sales was higher then Q4 2009, why do some people always use 1 figure to compare what they want to proove ? NSN is not improving at all. Their margin is shrinking further away, their reputation in the market is going down.

They started their JV a few years ago with the promise to reduce their costs, mainly because they had 60.000 people on board, to 45.000 people. They ddin't reduce their workforce, so their fixed costs at all.

Their Sales is still much lower compared to the value of Nokia NET and Siemens COM before.

Let us wait and see what Q1 of 2011 will bring, or will the JV be sold by then ?

wisley2003 12/5/2012 | 5:14:32 PM
re: Signs of Growth at NSN

one correction, the Y/Y increase is 9.2% instead of 6%, just simple calculation based on the number you provided.

digits 12/5/2012 | 5:14:31 PM
re: Signs of Growth at NSN


Thanks. The figures are right, but I took the % from the line above, so it is indeed 9% instead of the 6% I have originally - corrected now, and apologies.



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