Nokia’s ip systems and applications business: key developments – market realist
Nokia’s IP Systems and Applications business includes the IP/Optical and Applications and Analytics segments (or perhaps a&A). Nokia (NOK) has mentioned the firm is “gaining momentum” with major web-scale players.
Nokia mentioned that the part of its A&A company remains mounted on mobile equipment, whose performance continues to be influenced by global mobile market conditions. In 2Q16, Nokia launched its new IoT (internet of products) platform, IMPACT, in addition to a cloud-based solution for network signaling needs referred to as Nokia Dynamic Diameter Engine.
How did Nokia’s IP Systems and Applications business perform in 2Q16?
Nokia’s sales from the IP Systems and Applications business fell 11% YoY (year-over-year) in 2Q16. Sales in IP/Optical Systems fell 7% YoY, and purchasers inside a&A segment fell 20% YoY in 2Q16. The gross margin within this business fell 210 basis points in 2Q16, whereas its operating margin fell by 680 basis points—particularly driven by lower charges.
Nokia’s IP Systems and Applications business includes the IP/Optical and Applications and Analytics segments (or perhaps a&A). Nokia (NOK) has mentioned the firm is “gaining momentum” with major web-scale players.Nokia mentioned that the part of its A&A company remains mounted on mobile equipment, whose performance continues to be influenced by global mobile market conditions. In 2Q16, Nokia launched its new IoT (internet of products) platform, IMPACT, in addition to a cloud-based solution for network signaling needs referred to as Nokia Dynamic Diameter Engine.
How did Nokia’s IP Systems and Applications business perform in 2Q16?
Nokia’s sales from the IP Systems and Applications business fell 11% YoY (year-over-year) in 2Q16. Sales in IP/Optical Systems fell 7% YoY, and purchasers inside a&A segment fell 20% YoY in 2Q16. The gross margin within this business fell 210 basis points in 2Q16, whereas its operating margin fell by 680 basis points—particularly driven by lower charges.
Nokia is positive about its Optical portfolio and believes this segment can help expand its subscriber base among web-scale players. Nokia sees lengthy-term growth and profit possibilities within the A&A segment and wishes to create “a true software business having a stand-alone portfolio that may be scaled across multiple vertical markets.”
Resourse: https://marketrealist.com/2016/09/impacts-revenue-nokias-ip-systems-applications-business/
