Nokia Corporation (NYSE:NOK) [Detail Analytic Report] showed bearish momentum after opening bell on Friday, shares dropped over 1.14% after it has revealed its plans to slash more than 1,000 jobs in Germany. In April Nokia reported that following its acquisition of telephony vendor Alcatel-Lucent, it planned to cut its German workforce by 1,400 during the coming two to three years. The cuts form part of a worldwide plan to cut annual operating costs by €900 million, while allowing investment in emerging technologies such as 5G, cloud, and the IoT.
Nokia announced further details of its plans for its German business, from which it plans to excise 1,022 positions by the end of next year. Its operations in Stuttgart and Munich will be worst affected, losing a total of 360 and 354 jobs respectively. Some 141 positions will be lost across the firm’s locations in Dusseldorf and Bonn, while its Berlin office will see 84 jobs shed. Nuremberg will have its workforce lowered by 49, Ulm will lose eight employees, and a further 26 positions will be axed from across the remainder of Nokia’s smaller offices throughout Germany.
Wilhelm Dresselhaus, chairman of the board at nokia Germany stated in a statement that by implementing the transformation plan, they can invest more in future technologies such as 5G, cloud, connected cars, industry 4.0, high-speed optical networks, and network security. In Germany, they will continue to have significant sites for the R&D of these technologies and plan to continue to invest in these fields. Nokia completed the acquisition of Alcatel-Lucent shortly after the start of 2016.
Ericsson (NASDAQ:ERIC) [Detail Analytic Report] proclaimed that it has been selected by MTN Ghana for the deployment of a new LTE network in the Greater Accra region. The deployment will allow MTN to offer its 16 million subscribers high-quality mobile broadband experiences based on HSPA and LTE technologies. According to the contract, Ericsson will install its multi-standard radio solution which supports GSM/EDGE, WCDMA/HSPA, and LTE. The solution supports cost-effective deployment, along with capacity and functionality evolution.
Ebenezer Twum Asante, Chief Executive of MTN Ghana commented that MTN Ghana is happy to launch its LTE services. Their customers are looking for world-class data access that is capable of meeting all their unique connectivity requirements and they are thrilled at the opportunity to provide them this latest technology.
Ignacio Gelso, Country Manager, Ericsson Ghana stated that as an international LTE leader, they are excited by the opportunities for inclusion and empowerment that connectivity brings to Africa and Ghana. There is a growing recognition among operators of the need to deploy 4G/LTE to keep their mobile broadband offerings competitive. Ericsson’s technology leadership makes them a trusted transformation partner for operators exploring the possibilities of the Networked Society.
Mitel Networks Corporation (NASDAQ:MITL) [Detail Analytic Report] posted loss of $22.4 million in its first quarter, after reporting a profit in the same quarter a year ago. The Ontario-situated firm reported that it had a loss of 19 cents a share. Earnings, revised for one-time gains and costs, came in 6 cents a share. The results trailed Wall Street outlooks. The average estimate of experts polled by Zacks Investment Research was for earnings of 7 cents a share.
Mitel Networks declared its Q1 revenue of $276.1 million, which also missed Street forecasts. According to Zacks, analysts have expected $282.7 million. For the current quarter completing in July, Mitel Networks expects its earnings to be 10 to 16 cents a share. Shares of Mitel Networks have plunged 13 percent since the starting of the year. The stock has dropped 27 percent in the previous twelve months.
Richard McBee, Chief Executive Officer of Mitel Networks stated that their solid results in the period showed continued momentum in their Cloud and Mobile divisions. Their Cloud business set a new quarterly record with revenue of $45.8 million, increased 32% year-over-year as they continue to gain market traction internationally. Year-over-year growth of 55% in Mobile was fueled by new footprint wins as well as the transition of existing footprints into network-wide roll-outs.