Finnish telecom equipment maker Nokia today said that its sales in the first three months of the year slowed to €5.4 billion.
A drop in the first quarter was primarily due to IP/Optical Networks and Fixed Networks, with approximately flat net sales in Mobile Networks and Applications & Analytics.
Overall, networks sales were down 6 percent to €4.9 billion in the first three months of the year.
Meanwhile, another Swedish-based telecom equipment maker Ericsson posted an operating loss of 12.3 billion.
Nokia chief executive Rajeev Suri said, "Nokias first quarter 2017 results demonstrated our improving business momentum, even if some challenges remain."
He said, "we slowed the rate of topline decline and generated healthy orders in what is typically a seasonally weak quarter for us. We also continued to see the expansion of cross-selling across our full portfolio, delivered excellent gross margins and improved group-level profitability."
He added we saw encouraging stabilization in Mobile Networks topline, our strategy to build a strong software business gained momentum in Applications & Analytics, and Nokia Technologies saw significant year-on-year improvement in sales. This progress offset relative weakness in Fixed Networks and IP/Optical Networks, and allowed us to maintain Networks strong gross margin - which was among the strongest Networks has ever delivered for a Q1
The company said that "Comptel is a long-time Nokia partner and in 2016, Comptels net sales were EUR 100 million with an 11% operating margin." The companys major sites are in Finland, Bulgaria, Malaysia, India, the United Kingdom and Norway.