Not much has changed between Q2 and Q3 2009 earnings at Nokia Siemens Networks. Even if the service provider capital spending freeze is starting to thaw, Nokia Siemens Networks does not appear to be seeing any benefit.
During the third quarter of 2009, Nokia Siemens Networks reported third-quarter 2009 revenues of $4.1 billion, a 21 percent decrease from the same period in 2008. In addition, NSN reported an operating loss of $1.64 billion, compared with $1.49 billion in 2008. NSN's net sales for the quarter were $14.57 billion, down 20 percent from the third quarter of 2008.
Not surprisingly, investors did not greet the news favorably. During trading yesterday on the Helsinki exchange, parent company Nokia's stock fell more than 10 percent immediately following the news to around $13.79 per share.
"The challenging competitive factors and market conditions in the infrastructure and related services business necessitated non-cash impairment charges at Nokia Siemens Networks," Nokia CEO Olli-Pekka Kallasvuo said in a statement. "We continue to support Nokia Siemens Networks actions to improve its performance."
But there was one bright spot: professional services. And while the performance of the services unit will be "offset by declines in certain product businesses," Nokia's CFO Rick Simon said the company has built a strong pipeline to get more services contracts from major carriers. During the third quarter, NSN's services unit made up $1.93 billion of the company's revenue, a minor increase from the second quarter.
For more:
- Reuters has this article
- Light Reading Europe has this analysis
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