Nokia: Lumia Sales 'Exceed Expectations'

NEW YORK ( TheStreet) - Nokia ( NOK) reports that its Lumia line of smartphones is doing better than expected.

According to "preliminary information on certain aspects" of the company's fiscal fourth-quarter performance, Nokia estimates that its Devices & Services division has "exceeded expectations and achieved underlying profitability" in the last quarter.

It attributes this achievement to its mobile phone business unit and Lumia phone portfolio, in particular, which delivered better-than-expected results. Nokia adds that lower operating expenses helped the situation as well.

Officially, Nokia reported mobile phone net sales of approximately 2.5 billion Euros ($3.26 billion) which comes out to 79.6 million handsets. Of those phones, 9.3 million were Nokia's low-cost line of Asha models, not sold in the United States.

Lumia branded phones run on Microsoft's ( MSFT) Windows Phone operating system, while Asha phones use a simplified platform called Nokia OS, which is based on its previous Series 30 and Series 40 operating systems.

According to its latest numbers, Nokia estimates that its Devices & Services non-IFRS (International Financial Reporting Standards) operating margin for its fiscal fourth quarter was "between break even and positive 2 percent" which is much better than what had been projected for the same period - "negative 6 percent".

--Written by Gary Krakow in New York.

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Gary Krakow is TheStreet's senior technology correspondent.

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