Nokia has just posted its Q2 2012 financial report, and with it reveals a total operating loss of €826 billion (around $1 billion). The Finnish company previously warned investors that its Q2 results were likely to be "similar to or below" its enormous €1.3 billion (around $1.6 billion) operating loss in the first quarter.
Net cash actually rose by €102 million (around $125 million) thanks to a combination of licensing payments and a hefty quarterly cheque from Microsoft.
Lumia sales reached four million— double last quarter's two million, and in keeping with Nokia's "Rolling Thunder" plan for Windows Phone. Its troubles stem from the fact that Nokia phone sales in other sectors are falling far faster than Windows Phone sales are growing.
The company sold 83.7 million phones in total, up from 82.7 last quarter, but still down 4.8 million from last year's figures. Sales of "Smart Devices," which encompasses Symbian, MeeGo, and Windows Phones, dropped from 16.7 million in Q1 to 10.2 million in Q2.
Nokia expects its performance in the third quarter to be similar to its Q1 and Q2 results. It predicts that "the third quarter 2012 to be a challenging quarter in Smart Devices due to product transitions." The company is continuing its transition away from Symbian and MeeGo to Windows Phone, and will also have to endure the wait for Windows Phone 8. The lack of a long-term upgrade path for its Lumia devices may hurt the company significantly in sales. CEO Stephen Elop remains bullish on the company's long term prospects. In a prepared statement he says:
"While Q2 was a difficult quarter, Nokia employees are demonstrating their determination to strengthen our competitiveness, improve our operating model and carefully manage our financial resources.
We are executing with urgency on our restructuring program. We are disposing of non-core assets like Vertu. We are taking the necessary steps to restructure the operations of the company."
