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Nokia Corporation (NOK)

  • Fri, Mar. 27, 12:44 PM
    • Nokia (NOK +0.8%) will manage Vodafone's Vodafone Hutchison Australia's 2G,3G, and 4G network operations for another 4 years. The Sydney Morning Herald reports the deal is worth around $200M.
    • Notably, Nokia will handle the work from an Indian Global Delivery Center. The company's global services revenue totaled €1.58B (+3% Y/Y) in Q4, and €5.11B (-11% Y/Y) over the whole of 2014.
    • Separately, Nokia has its 2014 annual report (form 20-F). It can be downloaded on Nokia's site.
  • Tue, Mar. 10, 1:13 AM
    • Nokia's (NYSE:NOK) current forecast for licensing revenue (exc. the outcome of a 2015 Samsung arbitration ruling) to simply grow from a €600M/year run rate "understates the long-term potential for this business unit now that Nokia no longer will cross license its own mobile device business," says Canaccord Mike Walkley, reiterating a Buy and $12 target.
    • Walkley, who met with Nokia Technologies (licensing division) chief Ramzi Haidamus at last week's Mobile World Congress, also argues Nokia's core Networks business is "well-positioned to maintain strong margins and drive solid cash flows," and that the Here mapping/navigation unit can (like licensing) also boost margins and top-line growth.
    • Nokia is coming off a Q4 in which Technologies revenue rose 23% Y/Y to €149M thanks to rising Microsoft royalties, and Here revenue rose 15% to €292M to automotive growth. North American demand drove an 8% increase in Networks revenue.
    • JPMorgan has also been upbeat about Nokia's licensing potential in the wake of the Microsoft deal.
  • Tue, Mar. 3, 7:06 PM
    • With Mobile World Congress focusing lots of talk on the next generation of wireless radio technology -- 5G -- NTT DoCoMo (NYSE:DCM) is putting itself in the center, working with many firms in the space, in Asia and otherwise, to help define the standards and develop the tech.
    • Recently the Japanese company announced a regional consortium with South Korea's KT Corp. (NYSE:KT) and China Mobile (NYSE:CHL). The three will share information to develop custom 5G tech for Asia, in a bid to get ahead of competitors in the U.S. and Europe.
    • Today China's Huawei said it was teaming with DoCoMo for tests in both China and Japan. At MWC, Huawei announced plans to invest at least $600M on 5G research over the next three years.
    • On Monday, Nokia (NYSE:NOK) said it was working with DoCoMo to develop high-frequency networks for 5G that could offer 2 Gbps speeds by tapping previously unused spectrum.
    • DoCoMo is among the more conservative firms on 5G, expecting it to really arrive in 2020 (just in time for the Tokyo Olympics), with 2030 a target for major deployment.
    • FCC Chairman Tom Wheeler says of 5G: "It is like going to the Picasso museum here in Barcelona and looking at a picture; I’ll see something different than you see," but agreement is crystallizing around goals: speeds of up to 10 Gbps, vs. 4G's theoretical 300 Mbps; latency of 1 ms, 500 times faster than current; green and sustainable; flexible; and secure.
  • Mon, Mar. 2, 11:19 AM
    • Up sharply last week following a Bloomberg report stating HP is in talks to buy Aruba Networks, Ruckus (RKUS -4%) has sold off after HP and Aruba officially announced the deal this morning.
    • HP's purchase price ($3B, or $24.67/share) is slightly below Aruba's Friday close, albeit well above where Aruba traded before Bloomberg's report came out.
    • Meanwhile, Ruckus has used the Mobile World Congress to announce its 802.11ac carrier Wi-Fi tech is being integrated into partner Nokia's (NYSE:NOK) small cell 3G/4G base stations. Nokia will begin offering the solution later in 1H15. It comes as Qualcomm rolls out chips supporting the use of unlicensed 5GHz. spectrum (used for Wi-Fi) to offer 4G services via small cells.
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  • Thu, Jan. 29, 3:32 AM
    • "While 2014 was a year of reinvention, we see 2015 as a year of execution," announced Nokia's (NYSE:NOK) chief executive Rajeev Suri, saying the company was ready to take more steps to grow this year.
    • Net profit in the three months to end-December quarter was €443M ($505M), or €0.11 a share, beating a median analyst forecast of €325M, or €0.09 a share.
    • The stronger-than-expected quarterly profits was lifted by robust sales of latest-generation wireless telecom equipment in North America.
    • Update: Nokia forecasts weakening profitability in 2015, saying adjusted operating margin at its network division will probably shrink this year.
    • NOK -2.8% premarket
  • Wed, Jan. 28, 5:30 PM
  • Wed, Jan. 14, 9:28 AM
    • JPMorgan Cazenove (JPM's European bank) has hiked its Nokia (NYSE:NOK) target by €1 to €9 ($10.62), and predicted the company will benefit from a weak euro and a favorable royalty arbitration ruling against Samsung.
    • The firm also thinks Nokia will beat Q4 EPS estimates when it reports on Jan. 29, thanks to better-than-expected margins, and sees the company renegotiating licensing deals to direct licensing agreements (could provide a 1% royalty) from fixed-price ones.
    • BofA/Merrill named Nokia a top telecom equipment pick on Monday: It cited Samsung arbitration, improving Chinese patent monetization, U.S./European equipment share gains, and the ability to participate in industry consolidation; Alcatel-Lucent rumors have been swirling for a long time.
  • Tue, Jan. 13, 5:42 PM
  • Mon, Jan. 5, 9:57 AM
    • With Greece and oil-related fears once more taking a toll, The Euro Stoxx 50 is down 2.1%, and many continental indices posting ~2% declines. U.S.-traded European tech and telecom names are performing much the same way.
    • Tech decliners: NOK -4.2%. ALU -3.3%. SAP -2.9%. STM -2%.
    • Telecom decliners: VOD -2.4%. TEF -4%. ORAN -3.6%. TI -2.2%. PT -6%.
  • Dec. 18, 2014, 9:59 AM
    • Germany's Manager Magazin reports Alcatel-Lucent (ALU +4.8%) and Nokia (NOK +0.6%) have revived M&A talks this fall, and could agree to a merger or close partnership.
    • Reuters reported a year ago Nokia was "discussing internally" whether it should pursue a tie-up with Alcatel-Lucent, after reaching a deal to sell its phone unit to Microsoft. The WSJ later reported Nokia had decided not to pursue an Alcatel deal for the time being.
    • Nokia and Alcatel have considerable mobile infrastructure overlap, but a relatively limited amount of wireline equipment overlap. Alcatel's carrier IP networking (router/switch) ops are often seen as the company's most valuable asset.
    • Nokia is currently worth $30B, and Alcatel $9.8B. The latter has been aggressively cutting costs.
  • Dec. 15, 2014, 5:38 PM
    • Nokia's (NYSE:NOK) Here unit will power Baidu's (NASDAQ:BIDU) PC and mobile mapping services outside of China. The solution will cater to Chinese tourists traveling abroad.
    • With Baidu's search services squaring off against Google's in non-Chinese markets, it might have been more comfortable partnering with a third party. The Baidu deal comes shortly after Nokia made Here's Android app available to all; it was previously offered only to Samsung users. An iOS app will launch in 2015.
    • Separately, Nokia has announced Bernard Najm, an 18-year company vet, is its new Middle East/Africa chief. Najm succeeds Igor Leprince, who was recently named the company's Global Services chief.
  • Nov. 21, 2014, 1:10 PM
    • Nokia (NOK +3.1%) and Alcatel-Lucent (ALU +2.4%) are posting healthy gains after Mario Draghi signaled the ECB would step up its asset-buying if inflation didn't rise, thus sparking a big rally in European equities.
    • YTD, Nokia is up 5%, and Alcatel is down 24%.
  • Nov. 18, 2014, 10:25 AM
    • The $249 Nokia N1, hinted at in a teaser image yesterday, features a 7.9" 2048x1536 display (similar to the retina iPad Mini's), an Intel Z3580 Atom CPU (quad-core, 2.3GHz.), an aluminum body, 32GB of storage, 8MP (rear) and 5MP (front) cameras, and stereo speakers.
    • The tablet runs on Google's Android 5.0 and Nokia's (NYSE:NOK) Z Launcher (now available to all Android users) and is among the first devices to support Type-C USB cables (they look the same on both ends). It's due in China in February, and will hit Russia and certain European countries afterwards.
    • Notably, Foxconn will manufacture the N1 and also license Nokia's brand; that could prevent Nokia from having to strike patent cross-licensing deals that could affect its IP licensing revenue. Nokia stated last week it's looking to license its brand for consumer products.
    • "It's the first of many [consumer products] coming – more SKUs, more sizes, more features," says Nokia exec Ramzi Haidamus. "We will go beyond tablets for sure." The Microsoft deal prohibits Nokia from selling phones under its brand, but only until 2016.
  • Nov. 17, 2014, 10:17 AM
    • Raymond James has downgraded Nokia (NOK -2.4%) to Underperform in the wake of its 2014 Capital Markets Day. The firm thinks expectations are too high for both Nokia's Networks and Technologies units.
    • Nokia's Twitter account has posted an image of a black box (resembles a set-top or a Mac Mini), while suggesting the product will be unveiled tomorrow at Helsinki's Slush startup conference.
    • David Einhorn bought back into Nokia in Q3: Einhorn's Greenlight Capital owned 7.8M Nokia shares at the end of Q3. Greenlight had a 3.5M-share Nokia position at the end of Q1, but unloaded it in Q2.
    • Capital Markets Day coverage: I, II
  • Nov. 14, 2014, 12:30 PM
    • Though Nokia (NOK -4.7%) hiked its Networks op. margin target range to 8%-11% from 5%-10%, some analysts wanted more. "The margin range in Networks should be seen as a bit bearish by some as the upper end already is priced into the estimates," says Nordea's Sami Sarkamies. Pohjola Bank's Hannu Rauhala was expecting 2015 op. margin guidance of 11%-12%.
    • CEO Rajeev Suri: "I think you can expect our brand will return to the consumer world ... We see brand licensing as an opportunity ... But I would say it is more of a long-term opportunity." The remarks come shortly after Microsoft began using its own brand (rather than Nokia's) for its Lumia phones.
    • Meanwhile, Suri calls the prospects for mobile network spending to be "flattish" in the coming years; Nokia has said it's aiming for Networks (depends heavily on mobile capex) to slightly outgrow the broader market long-term.
    • Suri strikes a more positive tone regarding Nokia's IP licensing growth opportunity. "We haven’t yet tapped the full potential of our patent portfolio."
    • Earlier: Nokia lower after providing 2015 guidance
  • Nov. 14, 2014, 8:04 AM
    • In tandem with its 2014 Capital Markets Day (webcast), Nokia (NYSE:NOK) guides for 2015 Nokia Networks sales to be up Y/Y (no specific number is given). Networks' long-term op. margin target range has been raised to 8%-11% from 5%-10%; 2015 op. margin is expected to be in the new target range.
    • Long-term, Nokia is aiming for Networks revenue to grow "slightly faster than the market." Yesterday, rival Ericsson forecast its total addressable market would see a 3%-5% CAGR from 2013-2017.
    • The Here unit is also expected to see revenue grow Y/Y; its op. margin is expected to be in a 5%-10% range. Nokia Technologies (IP licensing) revenue is expected to be up, not counting expected Samsung arbitration revenue; the unit's opex is expected to "increase meaningfully."
    • 2015 capex guidance is at €200M ($250M), financial income/expenses guidance at -€160M (-$200M), and Common Functions opex guidance at €120M ($150M).
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Company Description
Nokia Oyj is a mobile communications company. The Company has three business: Networks, HERE, and Technologies and four business segments: mobile Broadband and Global Services within Networks, HERE, and Technologies.
Sector: Technology
Country: Finland