TallTrader
2 years ago
NOK This Risen Phoenix Should Be In All Portfolios
Summary
- Nokia, a once beloved business, fell on bad times. It has now risen again, and looks to outperform in the near future.
- Nokia's core businesses are performing well, and its new management is executing on their plans to improve operational efficiencies.
- Nokia's 5G technology looks market-leading with more innovations to come. The market is expected to grow exponentially, with Nokia bound to benefit.
- Macro conditions are worsening, but we believe Nokia's positioning should allow it to navigate this well.
https://seekingalpha.com/article/4512539-nokia-this-risen-phoenix-should-be-in-all-portfolios
TallTrader
2 years ago
Nokia to supply Microsoft’s Azure networks
Nokia to supply data center switching portfolio for Microsoft’s data center networks
Nokia’s solutions will deliver the additional networking scale and capacity Microsoft requires for its data center environments to support the bandwidth growth to its Microsoft Azure platform
20 April 2022
Espoo, Finland – Nokia today announced it will provide its data center switching solutions for Microsoft’s data center facilities to support the bandwidth growth to Microsoft Azure as part of a multi-faceted deal. The deal expands the long-standing relationship between the companies, who have been working together to bring massively scaled, agile and highly resilient networking to the data center environment.
With the significant growth of cloud services and cloud computing and the move to 400GE, Nokia has been selected to supply its 7250 IXR chassis-based interconnect routers to support high-density 400GE applications in Microsoft’s ‘tier-2’ network architecture. Nokia will also be supplying fixed-form-factor platforms into other Microsoft network applications. This new agreement builds upon the companies’ collaboration as part of the open source SONiC initiative to develop chassis-based platforms focused on the requirements of high-capacity data centers.
Nokia’s next-generation data center switching portfolio platforms deliver the scale, openness, aggregation and interconnectivity required for modern data center networks. The 7250 IXR offers a broad range of high-performance chassis-based and fixed-form-factor options for data center top of rack (TOR), leaf, spine and super-spine applications. The platforms support port speeds up to 400GE, with a path to 800GE, along with comprehensive IP and Ethernet feature sets.
Vach Kompella, Vice President, IP Networks Division, Nokia, said: “Today’s data centers have their own unique operational challenges, and Nokia has been working closely for some time now with Microsoft to understand its evolving data center needs and requirements. Our expertise in building high-performance, chassis-based systems was a key factor in our selection.”
David Maltz, Technical Fellow and Corporate Vice President, Microsoft Azure Networking, said: “Nokia’s platforms were a natural choice to deliver the massive-scale interconnectivity that Microsoft requires. Nokia brings density, performance and flexibility to Microsoft’s data center networks and cloud environments and is partnering with Microsoft to deliver chassis switches running the open source networking operating system SONiC.”
https://www.nokia.com/about-us/news/releases/2022/04/20/nokia-to-supply-data-center-switching-portfolio-for-microsofts-data-center-networks/
TallTrader
2 years ago
Nokia Corporation Financial Report for Q3 2021
28 October 2021 at 08:00 EEST
Nokia Corporation Financial Report for Q3 2021
Strong profitability and cash generation
Constant currency sales growth of 2% constrained by expected supply chain and Mobile Networks North America headwinds
Strong sales growth in Network Infrastructure (+6% y-o-y constant currency) and Cloud & Network Services (+12%)
Comparable gross margin of 40.8% (reported 40.7%), reflecting continued strong execution across the business
Mobile Networks comparable gross margin of 37.8% (+220 bps y-o-y) showed better cost competitiveness
Comparable operating margin of 11.7% (reported 9.3%), new operating model bringing strong financial accountability
Comparable diluted EPS of EUR 0.08; reported diluted EPS of EUR 0.06
Strong free cash flow generation of €0.7bn
Launched new FP5 IP routing silicon which sets new industry benchmarks particularly on power efficiency
Continuing to manage supply chain constraints but challenges are increasing into Q4
Reiterating our full year guidance for net sales of €21.7bn – 22.7bn and comparable operating margin of 10-12% and now expect to be towards upper-end of the margin range considering continued strong performance
All financial metrics above refer to Q3 2021
This is a summary of the Nokia Corporation Financial Report for Q3 published today. Nokia only publishes a summary of its financial reports in stock exchange releases. The summary focuses on Nokia Group's financial information as well as on Nokia's outlook. The detailed, segment-level discussion will be available in the complete financial report hosted at www.nokia.com/financials. A video interview summarizing the key points of our Q3 results will also be published on the website. Investors should not solely rely on summaries of Nokia's financial reports, but should also review the complete report with tables.
PEKKA LUNDMARK, PRESIDENT AND CEO, ON Q3 2021 RESULTS
We delivered another great quarter driven by our increased investments in technology leadership and strong market demand. The highlight of the quarter was the launch of our next generation FP5 IP routing silicon – delivering up to three times more capacity while reducing power consumption by up to 75% per bit compared to previous generation. This will help reduce the carbon footprint of both Nokia and our customers, while also helping customers to manage their operating expenses.
The third quarter saw us achieve 2% constant currency net sales growth despite the impact of earlier communicated headwinds in North America for Mobile Networks and global supply chain constraints. These headwinds were offset by strong growth in Network Infrastructure against a tough year-on-year comparison and by Cloud and Network Services achieving double-digit growth. Our comparable operating margin for the quarter was 11.7%, which is a further testament to the accountability and financial discipline that our new operating model is driving through the organization.
We now have over 380 private wireless customers and the business continues to grow strongly. We are further increasing our investment to ensure we maintain the lead we have built with the industry’s most complete offering.
Overall, I am pleased with our strong financial performance in 2021 so far. We continue to expect seasonality to be less pronounced this year than previously and are reiterating our full year 2021 outlook. Considering our continued strength, we now expect to be towards the upper-end of our comparable operating margin range. As we look ahead, we believe we are well positioned to capitalize on strong demand in our end markets through strengthened technology leadership and improved cost competitiveness. However, the uncertainty around the global semiconductor market limits our visibility into Q4 and 2022. We are working closely not only with our suppliers to ensure component availability but also with our customers to ensure we can meet their needs and mitigate the unprecedented component cost inflation our industry faces. Coupled with the one-offs we’ve benefited from this year, this may limit our margin expansion potential in 2022.
https://www.nokia.com/about-us/news/releases/2021/10/28/nokia-corporation-financial-report-for-q3-2021/