Tuesday, July 31, 2012

postheadericon The Nokia torture

10:32 AM | Posted by ProJ | | Edit Post

Once the leader in the mobile phone, Nokia is now in free fall - to take their employees on the floor

How would you like to be an employee of Nokia?

last week, the leaders came with bad news: To reduce 3000000000 ? (about £ 2.4 billion) towards the end of 2013, 10,000 other employees will be posted door - this after before cutting the payroll by 4000. The news business is expressed in two ways - Nokia refine the strategy and provides updates to its goals and perspectives, with a shamefully misleading subtitle:

Company announces targeted investments in key areas of growth, operational changes and targets increased significantly reduce costs

followed by a second, finally, referring to the bad news:

Company

devices and services reduces the prospects for the second quarter 2012

In Sun, 2900-word statement, business management recognizes that the situation is worse than expected, with no immediate hope for improvement:

the second quarter of 2012, the competitive dynamics of the industry affect business unit of Smart Devices to a level slightly more than expected. Furthermore, while the limited visibility, Nokia expects that the competitive dynamics of the industry to continue to negatively impact devices and services in the third quarter of 2012. Nokia now expects its non-IFRS Devices & Services operating margin in the second quarter of 2012 will be lower in the first quarter of 2012, the rate of negative 3.0%. This compares with the previous forecast of similar or below the first quarter of negative 3.0%.

In English: "Our business smartphone sucks

who lost money last quarter, will lose even more money for the quarter currently ending in June, probably in the range of operating loss of 5%, and we will have bleeding similar for the foreseeable future. "

Bond-rating agencies took note and quickly downgraded the debt to junk status on Nokia, another disturbing fact. Read Nokia Q1 2012, the number, we see that net cash of ? 4.8 billion, down 24% from a year ago, 13% from the prior quarter. With the acceleration of losses, the cash drain is likely to do the same. This puts Nokia in a handful dangerous: You may have to borrow money at unfavorable rates or prevented from doing so, or be forced into liquidation
  • is how: We know that Nokia has already borrowed money, about ? 4.9 billion, but do not know what the fine print say these obligations. Lenders usually put conditions (covenants), giving them the option to require immediate repayment if the debtor is impaired too.
  • management
Nokia is concerned, it shows in the small signs
such as duration of precautions taken in what is known as forward-looking statements . They consist of legal language that tells us everything we have heard or read could be overturned by a series of changes in climate, the price of pork or crop failure. Practice, so often started with the best intentions. Management must be free to share their views on the future without being held too strictly to their description of the circumstances inherently fragile

In February 2011, the cautious language of Nokia ran about 255 words. Last week, the court-appointed lawyers to cover the back of Nokia executives need more than 1400 words, the list of precautions to K, and 1 to 39.

In short, it reveals a growing fear of lawsuits.



Find best price for : --Microsoft----Smart----Devices----Nokia--

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