This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Nokia Swings to Profit, But There's No Dividend

NEW YORK ( TheStreet) -- Nokia's (NOK - Get Report) back in the black again.

According to the company's fourth-quarter numbers, released early Thursday, sales of Lumia smartphones helped the company turn a profit of 202 million euros (nearly $270 million). That's a lot better than last year's fourth-quarter loss of 1 billion euros.

While those numbers are encouraging, investors won't be overjoyed by the announcement that, despite the profit, Nokia won't pay a dividend for 2012 (the company's 2011 dividend was 0.2 euro a share). Instead, the board decided to keep the money to improve the company's "liquidity position."

Nokia's shares were down 6.5% to $4.34 in morning trading.

Nokia's latest numbers were also helped by Microsoft's (MSFT - Get Report) $250 million aid package to the Finnish phone maker. This "platform support payment" was started to help Nokia make the transition from its old software to Microsoft's Windows Phone OS. Now that the company has started to turn a profit, Nokia will have to pay royalties to use the new software.

The turnaround is due, in large part, to Nokia's line of Lumia phones (Windows Phone OS 7.5 and 8.0). Nokia sold 4.4 million Lumias during the quarter.

The company also sold 2.2 million phones which run on its now-retired Symbian operating system. TheStreet tested the top-of-the-line 808 PureView smartphone (the one with the 41-megapixel camera on the back) and liked it a lot as a digital camera - but not so much as a modern-day smartphone. Nokia said today that the 808 is the last Nokia Symbian device ever.

When Nokia ended the Symbian era, former engineers and developers formed a new company, Jolla, which is busy working on an upgraded software platform and new handset designs.

-- Written by Gary Krakow in New York.

>To submit a news tip, send an email to: tips@thestreet.com.
Gary Krakow is TheStreet's senior technology correspondent.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
NOK $6.31 1.40%
MSFT $43.96 1.40%
AAPL $112.08 -0.23%
FB $89.44 -0.50%
GOOG $616.31 0.32%

Markets

Chart of I:DJI
DOW 16,465.59 +114.21 0.70%
S&P 500 1,959.75 +10.89 0.56%
NASDAQ 4,769.43 +19.4510 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs