Nokia Networks net sales in Q2 2014 was dropped by 7 percent Y-o-Y to EUR 2.6 billion ($3.5 billion), compared to EUR 2.8 billion ($3.77 billion) in Q2 2013.
Operating profit for Nokia Networks during the quarter stands at EUR 281 million, or 11.0 percent of net sales, compared to EUR 328 million, or 11.8 percent of net sales, in Q2 2013.
Meanwhile HERE net sales in Q2 2014 was increased by 0.6 million vehicles. In Q2 2014, HERE sold map data licenses for the embedded navigation systems of 3.3 million new vehicles globally, compared to 2.7 million vehicles in Q2 2013.
Nokia Technologies net sales increased sequentially in Q2 2014. The growth is attributed primarily to Microsoft becoming a more significant intellectual property licensee following the sale of all substantial Devices & Services business to Microsoft, for approx EUR 5.0 billion.
Overall Nokia ended Q2 2014 with gross cash of EUR 9.0 billion and net cash of EUR 6.5 billion compared to EUR 6.9 billion and EUR 2.1 billion, respectively, at the end of Q1 2014, the company said.
During the quarter, Nokia benefitted EUR 4.8 billion from the Devices & Services business sale, with the balance expected to be received in the second half 2014.
Commenting on the second quarter results, Rajeev Suri, Nokia President and CEO, said, “In Nokia Networks, our unique operating model has allowed us to deliver strong profitability while improving our topline trend. Maintaining this balance will remain a clear priority in the second half of the year, when we expect Networks to return to year-on-year growth.”
“Our expectations for the full year 2014 have improved and we now expect full year underlying profitability for Networks to be at or slightly above our long term target range of 5 to 10 percent,” Suri added.
Nokia will continue to invest in HERE, which has demonstrated good year-on-year growth in automotive business, Suri said.
“The licensing and innovation engine of Nokia Technologies remains very much on track. We see opportunities to expand this business with both new and existing licensees, and the Technologies team continues to increase its industry-leading patent portfolio,” he added.
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