Nokia restores profitability after Microsoft deal

HELSINKI - Nokia has restored profitability in the first quarter of 2014, and regained a strong balance sheet and solid cash position after a massive deal with Microsoft, the former mobile technology company said on Tuesday.

Nokia said in its 2014 fist quarter financial report, its net sales was 2.66 billion euros (3.61 billion U.S. dollars), which dropped by 15 percent compared to the first quarter of 2013. However, the operating profit was 304 million euros, which increased by 20 percent from the first quarter last year.

As a mainstay of Nokia after the sale of its mobile phone business to Microsoft, Nokia Solutions and Networks' operating profit was 216 million euros, which increased by 10 percent on a yearly basis.

After selling its mobile phone business to Microsoft, the company regained a strong balance sheet and solid cash position with gross cash of 6.9 billion euros and net cash of 2.1 billion euros respectively.

The market reacted positively to Nokia's results. Nokia's share price surged nearly 6 percent in Helsinki Stock Exchange Market as soon as it opened in Tuesday morning two hours after the publication of the company's report.

"With the closing of our transaction with Microsoft, Nokia begins a new era. We are confident in our future. Nokia's vision is to be a leader in technologies which will be important in a world of billions of intelligent connected devices," commented Risto Siilasmaa, Chairman of Board of Directors of Nokia.

Nokia announced Friday it had substantially completed the sale of its devices and services division to Microsoft. The total price was said to be slightly higher than the 5.44 billion euros initially agreed last September.

Nokia first announced the sale of its devices and services business to Microsoft on Sept. 3, 2013. Nokia shareholders approved the sale on Nov. 19, 2013. (1 euro = 1.39 U.S. dollars)