Is Juniper The Next Takeover Target?
Chris DeMuth Jr. • 64 Comments
Chris DeMuth Jr. • 64 Comments
Tue, Apr. 26, 4:48 AM
- Nokia (NYSE:NOK) has agreed to pay €170M ($191M) to buy French fitness-gadget maker Withings as the Finish company looks to kickstart its return into the consumer market with a move into digital health.
- "With this acquisition, Nokia is strengthening its position in the Internet of Things," says CEO Rajeev Suri, adding that the deal "puts us at the heart of a very large addressable market."
- Withings products include a Wi-fi connected scale and fitness-tracking wearables.
- Nokia shares are +1.5% in Helsinki. (PR)
Mon, Apr. 25, 7:45 PM
- Disney (DIS +0.8%) has teamed up with Nokia (NOK -2.6%) to set its course for virtual reality.
- The entertainment giant has a multi-year deal to use Nokia's OZO 360-degree cameras for varying vectors from its films to its marketing materials, and it even used them to make VR extras for The Jungle Book.
- The cameras can help fill a well of content that could be used to keep Facebook's Oculus Rift and the HTC Vive humming. Nokia introduced the $60,000 OZO in November, though rivals that could include GoPro, Lytro and Jaunt may be following up soon with competing models.
- Now read Nokia: It's A Yield Play »
Thu, Feb. 11, 12:37 PM
- Though the S&P is down 1.9% and the Euro Stoxx 50 3.9%, Alcatel-Lucent (ALU +3.6%) and (to a lesser extent) Nokia (NOK +0.4%) remain higher after delivering Q4 EPS beats aided by a weak euro and substantial margin gains.
- Nokia's Q4 financials: Gross margin rose 560 bps Y/Y to 46.4%, and op. margin 600 bps to 20.3%. Networks op. margin rose 60 bps to 14.6%; Technologies op. margin rose 2820 bps to 79.9%, aided by "non-recurring adjustments from an existing agreement" (Samsung?). R&D was 15% of revenue, and SG&A 11% (same as a year ago).
Op. cash flow rose to €460M from €224M a year ago. With the help of the HERE sale, Nokia ended Q4 with €7.8B in net cash and other liquid assets. Forex provided a 600 bps revenue growth boost (+3% vs. -3%).
- Alcatel's Q4 financials: Gross margin rose 470 bps Y/Y to 39.4%. Op. margin rose 580 bps to 13.5%. SG&A spend rose 14% Y/Y to €477M, and R&D spend 4% to €603M.
Excluding restructuring cash outlays, free cash flow rose to €1.14B from €420M. Net cash rose to €1.4B. Forex provided a 900 bps revenue growth boost (+13% vs. +4%).
- Top-line performance: Nokia Networks revenue fell 5% Y/Y to €3.2B, with Mobile Broadband dropping 2% and Global Services 6%. With Samsung's help, Nokia Technologies revenue rose 170% to €403M.
Alcatel-Lucent's IP routing (carrier routers, gaining share) revenue rose 17% to €778M, IP transport (optical networking) 19% to €772M, and IP platforms (telecom software) 2% to €497M. Wireless access (mobile infrastructure) revenue rose 14% to €1.38B, and fixed access (broadband equipment) 21% to €666M. Managed services fell 36% to €61M, and licensing 33% to €10M.
- Guidance: Nokia has declined to provide formal guidance for Networks and Technologies, while citing the Alcatel deal for the former. The company does say it expects a "flattish capex environment" for its addressable market in 2016, and a declining 2016 wireless infrastructure market with a greater-than-normal Q1 seasonal decline.
Nokia is still aiming for €900M/year in merger cost synergies in 2018, and now forecasts achieving €200M/year in interest expense savings in 2016; prior guidance was for 2017.
- Nokia: Q4 results, earnings release (.pdf).
- Alcatel-Lucent: Q4 results, earnings release
- Update: Also of note: Nokia's board is proposing a €0.10/share special dividend (€600M payout) to go with a €0.16/share 2015 dividend (€960M payout).
Thu, Feb. 11, 5:33 AM
Thu, Feb. 11, 5:27 AM
Thu, Feb. 11, 4:32 AM
- Nokia (NYSE:NOK) posted better-than-expected profits, but warned of an impending slowdown in the telecom-equipment sector.
- Total's (NYSE:TOT) net loss narrowed in the fourth quarter after it booked fewer write-downs than a year earlier, while announcing plans to accelerate spending cuts.
- Citing a worsening global economy and sharp downturn in commodity prices, Rio Tinto (NYSE:RIO) swung to an annual loss and scrapped its progressive dividend policy.
- Societe Generale (OTCPK:SCGLY) reported fourth-quarter profit that missed analyst forecasts on investment bank woes and provisions for potential legal costs.
- Adidas (OTCQX:ADDYY) raised its outlook for the second time in four months after exceeding its revenue and profit targets for 2015.
- Although it plans to turn around its unprofitable general insurance unit, Zurich Insurance (OTCQX:ZURVY) disclosed a worse-than-expected loss in Q4.
Wed, Feb. 10, 5:30 PM
- AAP, AB, ACOR, ALLE, ALU, AVP, AYR, BG, BTU, BWA, CCE, COR, CPLA, CVE, DBD, FAF, FLIR, GNC, GPI, GRA, HUN, INCY, INT, IVC, K, KKR, LC, LIOX, LPX, MANU, MFC, MGI, MOS, MWW, NCI, NICE, NILE, NLSN, NNN, NOK, NTWK, NWE, OZM, PAG, PDS, PEP, PNK, Q, RAI, SHPG, SON, STC, TAP, TCK, TEVA, TGH, THS, TIME, TRI, TRIP, TZOO, VG, WBC, WOOF, WSO, WWAV, WWE
Wed, Feb. 10, 6:33 AM
- Nokia (NYSE:NOK) has failed to get its hands on 100% of shares in newly-acquired rival Alcatel-Lucent (NYSE:ALU), after winning nearly 80% of the French-American company last month.
- Following a second round of bidding, Nokia was still left with only 91.25% in Alcatel-Lucent, thus failing to reach the 95% threshold that would have allowed it to make a clean sweep by delisting all remaining shares from the Paris stock exchange.
- Nokia now has the option of buying those shares in the open market, but probably at a higher price than its original offer.
- NOK +1.7%; ALU -3.3% premarket
Mon, Feb. 1, 12:07 PM
- Korschelt: 'As a result of the increase in recurring payments Nokia is guiding to a [Nokia Technologies] recurring revenue runrate of E800m (800 million euro), below consensus of E900m (900 million euro) for 2016 and below the [BofA] estimate of E986m ... Growth in the high-margin Technologies division was meant to be a major driver of earnings/EBIT and in our view has helped the stock trade at a material premium to Ericsson. We now believe that the risk is that this premium narrows as investors may feel less confident in Nokia achieving EPS of ~E0.6 by 2018."
- He qualifies his remarks by adding Samsung "likely received volume discounts" from Nokia, and that higher rates might be received from other OEMs. "LG is already in arbitration and we believe the licensing agreement with Apple will expire this summer. Further the arbitration only covers standard-essential patents and we continue to believe that Nokia should be able to incrementally monetize its implementation patents as well. Having said all of that, the arbitration decision was meant to be a major catalyst for the stock..."
- Walkley: "Following the award with Samsung, Nokia’s annualized Technologies division revenue run rate is approximately €800M or well below our €1.2B expectation ...While we remain positive the now-closed Alcatel-Lucent acquisition can deliver its €900M cost synergy target by 2019, these assumptions are included in our updated model. However, due to our materially reduced licensing forecasts, we are lowering our estimates, resulting in our price target decreasing to $6.50."
- Nokia still "expects to receive at least approximately EUR 1.3 billion of cash during years 2016-2018 related to its settled and ongoing arbitrations [for] Nokia Technologies, including [the Samsung] award." Both Nokia and Alcatel's Q4 reports arrive on Feb. 11.
Mon, Feb. 1, 9:19 AM
Mon, Feb. 1, 4:59 AM
- After much hype and anticipation, Nokia (NYSE:NOK) has settled a lengthy patent dispute with Samsung (OTC:SSNLF), but investors were disappointed by the financial terms of the deal.
- The agreement will lift sales of the company's patent division to around €1.02B ($1.1B) in 2015, including catch-up payments, from €578M in 2014.
- The annualized run-rate for the unit, which will become a smaller part of Nokia after its proposed €15.6B takeover of Alcatel-Lucent (NYSE:ALU), is now about €800M.
- NOK -12.5%; ALU -12.7% premarket
- Previously: Nokia-Samsung patent verdict expected within days (Jan. 31 2016)
Sun, Jan. 31, 9:25 AM
- Nokia (NYSE:NOK) and Samsung (OTC:SSNLF) are expected to settle their two-year patent dispute shortly, with analysts forecasting a one-time payment of hundreds of millions of euros for the Finnish company.
- The International Chamber of Commerce's arbitration court is due to make its ruling on the issue within days.
- Nokia, which once dominated the global mobile phones market, is now focused on telecom network equipment but still holds on to a portfolio of phone patents.
Mon, Jan. 4, 3:51 AM
- Nokia (NYSE:NOK) has officially gained control of French rival Alcatel-Lucent (NYSE:ALU) through a €15.6B all-share deal after the French stock market authority declared the offer successful.
- "The two companies will begin to progress their integration plans, with the first day as an operationally combined group on January 14, 2016," Nokia said in a statement.
- According to interim results, the Finnish firm will hold around 79% of Alcatel shares.
Sun, Jan. 3, 9:16 AM
- When the Centers for Disease Control and Prevention published new guidelines 18 months ago regarding the radiation risk from cellphones, it used unusually bold language: "We recommend caution in cellphone use."
- Within weeks, though, the CDC reversed course. It no longer recommended caution, and deleted a passage specifically addressing potential risks for children.
- Mainstream scientific consensus currently holds that there is little to no evidence that cellphone signals raise the risk of brain cancer or other health problems. Nevertheless, more than 500 pages of internal records obtained by NYT, along with interviews with former agency officials, reveal a debate and some disagreement among scientists and health agencies about what guidance to give as the use of mobile devices skyrockets.
- Related tickers: NOK, AAPL, BBRY, MSI, SNE, VZ, TMUS, T, S, OTC:SSNLF, OTC:HTCXF, OTCPK:ZTCOF, OTCPK:ZTCOY
Dec. 31, 2015, 11:29 AM
- Aided by strong smartphone and telecom equipment sales in emerging markets, Huawei expects to report its 2015 sales rose 35% to RMB390B ($60B), topping a prior target for 20% growth.
- The closely-held Chinese company adds it saw a "solid increase in profits and cash flow." A formal annual report typically arrives around early April.
- Though its networking and telecom equipment is blacklisted by many U.S. enterprises and carriers due to security/spying fears, Huawei's strong growth elsewhere (aided by aggressive pricing) has made it a thorn in the side of everyone from Samsung (OTC:SSNLF) to Cisco (NASDAQ:CSCO) to Nokia (NYSE:NOK) and Ericsson (NASDAQ:ERIC). IDC estimates Huawei had a 7.5% Q3 smartphone unit share on the back of 26.5M shipments (+60.9% Y/Y).
Dec. 28, 2015, 5:39 PM
Nokia Oyj provides network infrastructure, technology and software services. It operates through four segments: Mobile Broadband, Global Services, HERE, and Nokia Technologies. The Mobile Broadband offers network solutions for mobile voice and data services through its Radio and Core clusters... More
Industry: Communication Equipment
Other News & PR