Nokia Siemens Networks posted a gross profit of $1.23 billion for the first quarter, up 8% from a year ago. However, gross margins trickled down a few percentage points to 26.7% as the telecom equipment vendor said it continues to experience an “intense pricing environment in the infrastructure market, particularly in relation to network infrastructure modernization projects.” Its overall operating margin was 1%.
NSN posted sales of $4.16 billion up 17% year over year, as the joint venture between Nokia Corp. (NOK) and Siemens AG (SI) saw more sales in nearly all regions. Of that total, services contributed roughly half of the revenue.
While Europe accounted for the majority of NSN’s sales in the first quarter, topping $1.46 billion, it was the only market that was down (6%) year over year. The Asia Pacific region is getting close to topping Europe, with $1.4 billion in sales, an astounding 56% jump from the year-earlier quarter. Latin America accounted for $560 million of sales, a 30% increase from the previous year. Greater China was up 17% from a year ago, bringing in $469 million of revenue. The Middle East/Africa region clocked in right below that at $447 million, while North America stood at last place with $246 million in revenues, up 10% for the year.
The company also has received approval from the Chinese government to move forward with its planned acquisition of Motorola Solutions’ (MSI) CDMA business, according to published reports.
NSN revenues up 17%, Moto purchase approved
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