Nokia chief financial officer Timo Ihamuotila pointed out that his company would be willing to sell some of their patents if the price was right. The admission came during a conference call pertaining to a second-quarter profit warning and the announcement of a restructuring effort that took place yesterday.
The executive said that Nokia would be able to sell patents while still maintaining a strong portfolio of intellectual property. This seems like a fair assessment as the communications corporation owns around 30,000 patents and an additional 10,000 patent innovations. They typically pump out around 1,000 new patentable innovations each year.
The idea to sell patents for quick cash is a direct result of the restructuring effort that was announced yesterday. In it, Nokia said they would be cutting 10,000 jobs or the equivalent to nearly 20 percent of their global workforce by the end of 2013. A handset factory and several research centers are among the physical casualties of the plan.
Nokia share prices continue to fall as multiple ratings agencies have moved the stock to non-investment grade status. The latest to do so is Moody’s with a “junk” rating citing concern over their cash position and slow adoption of Windows phones.
"Today's rating action reflects our view that Nokia's far-reaching restructuring plan... delineates a scale of earnings pressure and cash consumption that is larger than we had previously assumed," said Moody's analyst Wolfgang Draack.
Reuters points out that at least 10 other brokerages have cut price targets on Nokia’s shares based on the fact that they have lost 50 percent of their value since the beginning of 2012.
UPDATE 1-Analysts see tough year for Nokia, slash price targets - Reuters UK
June 15 |
June 15 (Reuters) - Struggling Finnish cellphone maker Nokia faces a long and painful transition to smartphones powered by Microsoft's Windows software, warned several analysts, who cut their price targets on the stock after the company forecast a wider-than-expected quarterly loss in its phone business.
"Nokia's current profit warning worryingly reflects the company having to significantly discount its new Microsoft Lumia products in order for the eco-system to gain any traction with retailers, operators and consumers," UBS said.
At least ten brokerages, including UBS, slashed their price targets on Nokia on Friday, after the company said it plans to cut 10,000 more jobs as it burns through cash and loses market share to rivals Apple Inc, Google Inc and Samsung Electronics Co.
Nokia's plan to cut more jobs and reduce operational costs are a step in the right direction, but the moves may be too late, said Wedbush Securities analysts, who cut their price target on the U.S.-listed shares to $2.50 from $3.25.
Nokia is placing its hopes of a turnaround on a new range of smartphones called Lumia, which use largely untried Microsoft software, but Lumia sales have been slow. Nokia ditched its own Symbian operating system and switched to Microsoft last year.
"Due to our expectations for a continued sharp decline in Symbian smartphone sales...combined with a slow ramp in Windows smartphone volume...and continued mobile devices pricing pressure...2012 remains a challenging transitional year for Nokia," Canaccord Genuity analysts said.
Canaccord Genuity analysts lowered their price target on Nokia's U.S.-listed shares to $2.70 from $3.50.
Analysts at Credit Suisse downgraded the stock to "neutral" from "outperform," while those at Nordea Equity Research cut their rating to "hold" from "buy."
Natixis cut its price target on the stock to 1.5 euros from 2.6 euros while Societe Generale cut its target to 1.6 euros from 1.8 euros.
For more details on price target and rating changes on Nokia, please click on
Shares of Nokia, which have fallen more than 50 percent since the start of the year, were trading up 2 percent at 1.86 euros at 0810 GMT on Friday. (Reporting by Tenzin Pema in Bangalore; Editing by Don Sebastian)
Motorola Solutions to Acquire Psion Plc. for $200 Million in Cash - Yahoo Finance
SCHAUMBURG, Ill. & LONDON--(BUSINESS WIRE)--
Motorola Solutions, Inc. (MSI) ("Motorola Solutions") and Psion Plc. (PON.L) ("Psion") today announced that they have agreed on the terms of a recommended offer by Motorola Solutions for all Psion shares for 88 pence (US $1.36) in cash per Psion share. It is intended that the acquisition will be effected by way of a recommended cash offer.
Psion has been a pioneer in ruggedized mobile computing products and their application in industrial segments around the world. With headquarters in London and a major operational presence near Toronto, Canada, Psion has been a leader in mobile computing solutions since 1980. Psion has approximately 830 employees, customers in more than 50 countries and delivered 2011 revenues of £176 million (approximately US $273 million).
Greg Brown, chairman and CEO of Motorola Solutions, said: “Psion is a compelling opportunity to strengthen our industry-leading, mobile-computing portfolio with ruggedized handheld products and vehicle-mount terminals that will deepen our presence in the global markets in which we compete.”
John Hawkins, chairman of Psion, said: "The Psion directors are pleased to unanimously recommend this offer by Motorola Solutions at a price which offers a significant cash premium to both the current and recent market prices. Psion continues to successfully deliver on its strategy of introducing exciting new products while strictly managing the cost base. The offer by Motorola Solutions provides Psion's shareholders with certainty in an environment where certainty is in short supply."
Under the terms of the acquisition, Psion shareholders will receive 88 pence (US $1.36) in cash for each Psion share through a recommended cash offer, valuing Psion's issued ordinary share capital at approximately £129 million (US $200 million). The consideration represents a premium of approximately 45 percent to the closing price of 60.5 pence per Psion share on June 14, 2012, the last trading day prior to this announcement and a premium of approximately 66 percent to the six-month average price of 52.9 pence per Psion share prior to June 15, 2012. The acquisition is expected to close in the fourth quarter of 2012.
Motorola Solutions expects to realize cost and revenue synergies resulting in margin expansion opportunities and expects the transaction to be accretive to earnings per share on a non-U.S. GAAP basis in the first full year following completion and on a U.S. GAAP basis in the second full year following completion.
Organization and Management
Upon completion of the acquisition, Motorola Solutions will combine Psion within Motorola Solutions' Enterprise Mobile Computing (EMC) business, reporting to Girish Rishi, corporate vice president, EMC.
Terms and Approvals
Full details of the offer are contained in an announcement made today in the United Kingdom under Rule 2.7 of the U.K. Takeover Code. Each Psion director intends to recommend Psion shareholders to accept the offer, as each Psion director who holds Psion shares has irrevocably undertaken to Motorola Solutions to do so in relation to Psion shares in which he holds a beneficial interest, amounting to, in aggregate, 153,929 Psion shares and representing, in aggregate, 0.11 percent of Psion's issued share capital.
Motorola Solutions has acquired from certain Psion shareholders, in aggregate, 14,077,244 Psion shares (representing, in aggregate, approximately 9.999 percent of Psion's issued share capital).
Motorola Solutions also has received irrevocable commitments from certain Psion shareholders to accept the offer in respect of, in aggregate, 23,766,467 Psion shares (representing approximately 16.88 percent of Psion's issued share capital). These irrevocable commitments are subject to certain conditions, further details of which are described in the Rule 2.7 announcement.
In connection with today's announcement, Motorola Solutions is expected to make the recommended cash offer for all Psion shares within 28 calendar days. The transaction is conditional upon the tender of 90 percent of Psion shares, regulatory approval and the satisfaction of other customary closing conditions.
Advisers
Goldman Sachs is serving as Motorola Solutions' financial adviser and Clifford Chance is serving as Motorola Solutions' legal counsel in relation to the transaction. Canaccord Genuity Hawkpoint Limited is serving as financial adviser to Psion and Slaughter and May is serving as legal counsel to Psion in relation to the transaction.
About Psion
Psion is one of the pioneers of quality mobile handheld computers and their application in industrial segments around the world. Psion has been an innovator in mobile computing since 1980 with the invention of the PDA. Teklogix, founded in 1967 and acquired by Psion in 2000, began development of rugged, wireless products in the early 80s. Today Psion helps its global customers solve their business problems through rugged mobile communications technology and applications.
Psion's core business is the design, manufacture, supply and service of rugged, handheld and vehicle-mounted devices designed to improve business efficiency and productivity for leading enterprises around the world.
Through its open innovation business model, Psion has the ability to work directly with its customers and partners to co-create new variants of its mobile hardware, software and service that meet the specific needs of the marketplace.
About Motorola Solutions
Motorola Solutions is a leading provider of mission-critical communication solutions and services for enterprise and government customers. Through leading-edge innovation and communications technology, it is a global leader that enables its customers to be their best in the moments that matter. Motorola Solutions trades on the New York Stock Exchange under the ticker “MSI.” To learn more, visit www.motorolasolutions.com. For ongoing news, please visit our media center or subscribe to our news feed.
Forward-Looking Statements
This press release, including information included or incorporated by reference in this press release, may contain "forward-looking statements" within the meaning of applicable federal securities laws concerning each of Motorola Solutions and Psion. In respect of Motorola Solutions, these forward-looking statements are made pursuant to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Generally, the words "will", "may", "should", "continue", "believes", "expects", "intends", "anticipates", "estimates" or similar expressions identify forward-looking statements. These statements are based on assumptions and assessments made by Motorola Solutions and/or Psion in light of their experience and their perception of historical trends, current conditions, future developments and other factors they believe appropriate. By their nature, forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those suggested by them. Many of these risks and uncertainties relate to factors that are beyond the companies' abilities to control or estimate precisely, and include, but are not limited to: (1) the satisfaction of the conditions to closing, including (a) receipt of regulatory approvals, and (b) receipt of the requisite number of acceptances by Psion shareholders; (2) the expected timeline for completing the transaction; (3) Motorola Solutions' ability to integrate Psion with its Enterprise Mobility Computing business in an efficient and effective manner; (4) Motorola Solutions' ability to achieve expected cost savings associated with the transaction; (5) the impact on Motorola Solutions' performance and financial results deriving from the perceived benefits of the transaction; and (6) current economic conditions, particularly in Europe, where Psion has a significant amount of sales, as well as future market conditions and the behaviours of other market participants. Therefore undue reliance should not be placed on such statements which speak only as at the date of this press release and do not represent the views of Motorola Solutions or Psion as of any subsequent date. A detailed description of other risks and uncertainties affecting Motorola Solutions is contained in Item 1A of Motorola Solutions' 2011 Annual Report on Form 10-K and in its other filings with the Securities and Exchange Commission (SEC). These filings are available for free on the SEC's website at www.sec.gov and on Motorola Solutions' website at www.motorolasolutions.com. Neither Motorola Solutions nor Psion assume any obligation to, and do not intend to, update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required pursuant to applicable law.
Nothing in this press release is intended, or is to be construed, as a profit forecast or to be interpreted to mean that earnings per Psion share or Motorola Solutions share for the current or future financial years, or those of the combined group, will necessarily match or exceed the historical published earnings per Psion share or Motorola Solutions share.
MOTOROLA, MOTO, MOTOROLA SOLUTIONS and the Stylized M Logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC and are used under license. All other trademarks are the property of their respective owners. ©2012 Motorola Solutions, Inc. All rights reserved.
Nicholas Sweers
+01 847 450 4957
Simon Craddock
+44 7738 928 092
Psion Media Contacts
Buchanan Communications
Charles Ryland/Suzanne Brocks/
Louise Hadcocks
+44 (0) 20 7466 5000
Motorola Solutions Investor Contacts
Shep Dunlap
+01 847 400 6291
Psion Investor Contacts
John Conoley, CEO
Adrian Colman, CFO
+44 (0) 207 025 6860
Clear the decks: Nokia cuts 10,000 jobs in radical shake-up - zdnet.co.uk
A series of moves, which also includes the selling-off of luxury handset division Vertu and the acquisition of imaging technology from Scalado, was announced early on Thursday. The heads of Nokia's mobile phone, markets and marketing departments have also been ousted as part of the reorganisation.
Nokia is to cut 10,000 people from its workforce as it looks to 'broaden' the price range of its Lumia phones. Image credit: Ben Woods/ZDNet
"We are increasing our focus on the products and services that our consumers value most while continuing to invest in the innovation that has always defined Nokia," Nokia chief Stephen Elop said in a statement. "We intend to pursue an even more focused effort on Lumia, continued innovation around our feature phones, while placing increased emphasis on our location-based services."
Although Nokia's UK representatives refused to say whether this forms part of the 10,000 figure or not, 1,000 job cuts will take place by selling off Vertu, a move that was expected. The luxury handset division, which coats normal Nokia phones in precious stones and sells them alongside a 'concierge' service, is headquartered in the UK, although its 1,000 workers are spread around the world.
Vertu is to be sold to the private equity firm EQT VI, although Nokia will retain a 10 percent minority stake in the business.
Nokia has not broken down its lay-off numbers by country — indeed, the company's representatives refused to say how many people Nokia employs in the UK, let alone how many cuts will take place here. However, Nokia did say it would be closing research and development facilities in Ulm, Germany, and in Burnaby, Canada.
The company's manufacturing plant in Salo, Finland, is also going to be shut down, although R&D will continue at the site. Jobs will also go among Nokia's marketing, sales, IT, corporate and support staff, the company added.
"These planned reductions are a difficult consequence of the intended actions we believe we must take to ensure Nokia's long-term competitive strength," Elop said. "We do not make plans that may impact our employees lightly, and as a company we will work tirelessly to ensure that those at risk are offered the support, options and advice necessary to find new opportunities."
Cheaper Lumia, better photos
The renewed focus on Lumia, Nokia's range of smartphones running Microsoft's Windows Phone OS, will make the devices "available to more consumers", the company said.
Nokia explained that it would be "broadening the price range" of Lumia, which almost certainly means the introduction cheaper phones. The manufacturer will also move to further differentiate its Windows Phone implementations from others, by using "new materials, new technologies and location-based services".– Stephen Elop, Nokia
We intend to pursue an even more focused effort on Lumia, continued innovation around our feature phones.
Buying imaging technology from Sweden's Scalado is apparently part of that strategy. Nokia pointed out that Scalado's tech, for taking, editing and viewing photos, is used on more than a billion devices.
"Nokia has been working with Scalado for more than ten years and they've contributed to many of our leading imaging applications," Nokia smart devices executive vice president Jo Harlow said in a statement. "This transaction would enable us to combine our leadership in camera devices with their expertise in imaging, helping people move beyond taking pictures to capturing moments and emotions and then reliving them in many different ways."
The Scalado deal comes with a site in Lund, Sweden, which is to become "a key site for Nokia's imaging software for smartphones", alongside existing facilities in Espoo and Tampere, both of which are in Finland.
The upper management shake-up will see a few Finns promoted to C-level seats. Although markets EVP Niklas Savander is one casualty — with no explicit replacement being announced — Timo Toikkanen will replace Mary McDowell as mobile phones chief and Tuula Rytila is to be the new chief marketing officer, taking over from Jerri DeVard.
Interestingly, given Nokia's new push for location-based services, both Savander and McDowell were at some point in their lengthy Nokia careers on the board of navigation subsidiary Navteq.
Other new appointments include Juha Putkiranta as operations head, Susan Sheehan as communications chief, and Chris Weber as executive vice president of sales and marketing.
No comments:
Post a Comment