Financial Performance - Nokia's Q2 2025 net sales experienced a 1% year-over-year decrease on a constant currency and portfolio basis[18] - The Q2 2025 operating margin was 6.6%, a decrease of 290 basis points year-over-year[18] - Free cash flow for Q2 2025 was EUR 0.1 billion[18] Business Segment Performance - Network Infrastructure net sales increased by 8% year-over-year in Q2 2025, reaching EUR 1.904 billion[25, 26] - Mobile Networks net sales decreased by 13% year-over-year in Q2 2025, totaling EUR 1.732 billion[32, 33] - Cloud and Network Services net sales grew by 14% year-over-year in Q2 2025, reaching EUR 557 million[38, 42] - Nokia Technologies net sales increased by 3% year-over-year in Q2 2025, reaching EUR 357 million[45] Outlook and Guidance - The comparable operating profit outlook for full year 2025 has been lowered to EUR 1.6 billion to EUR 2.1 billion, due to currency and tariff headwinds[11, 13] - Free cash flow conversion is expected to be 50% to 80% of comparable operating profit for full year 2025[11, 13] Regional Performance - Americas experienced a 22% decrease, APAC a 3% decrease, and EMEA a 17% decrease[49]

Nokia’s adjusted profit dropped 29% in the second quarter from a year earlier after the 5G equipment maker was hit by impact from tariffs and a weak US dollar https://t.co/O5WQSdJ8ev ...

Core Viewpoint - Nokia Corporation reported solid performance in Q2 2025, although results were impacted by currency fluctuations, particularly a weaker USD, leading to a decline in net sales on a constant currency basis [7][12][13]. Financial Performance - Q2 2025 comparable net sales decreased by 1% year-over-year on a constant currency and portfolio basis, while reported sales declined by 2% [8][15]. - Mobile Networks experienced a significant decline of 13% in net sales, primarily due to a prior year settlement benefit and project timing in India [7][8]. - Network Infrastructure grew by 8%, and Cloud and Network Services saw a growth of 14% [8][9]. - Comparable gross margin remained stable at 44.7%, while the operating margin decreased by 290 basis points to 6.6% due to a negative impact from venture funds and tariffs [10][14]. - The company reported a comparable diluted EPS of EUR 0.04, with a free cash flow of EUR 0.1 billion and a net cash balance of EUR 2.9 billion [8][10]. Outlook - The full-year 2025 comparable operating profit outlook has been revised to a range of EUR 1.6 billion to EUR 2.1 billion, down from EUR 1.9 billion to EUR 2.4 billion, due to currency impacts and tariffs [12][13][20]. - The company expects a stronger performance in the second half of 2025, particularly in Q4, with anticipated growth in Network Infrastructure and Cloud and Network Services [12][19]. - The underlying business is trending largely as expected, with stable net sales in Mobile Networks on a constant currency basis [12][19]. Strategic Positioning - The CEO emphasized the importance of connectivity in the AI supercycle, positioning Nokia as a leader in mobile and fiber access, data center, and transport networks [4][6]. - There is a focus on unifying corporate functions to enhance productivity and customer value [5]. - Continued strong order momentum in Optical Networks was noted, with a book-to-bill ratio above 1, driven by new hyperscaler orders [11].

Financial Data and Key Metrics Changes - Revenue reached an all-time high of $221 million in Q2 2025, representing a 15% increase year over year and exceeding guidance [15][23] - Adjusted EBITDA increased by 47% year over year to $32 million, aligning with the high end of guidance [17][23] - Non-GAAP gross margin was 52.1%, slightly below guidance due to a higher mix of hardware and professional services [16][23] Business Line Data and Key Metrics Changes - Cloud and Edge business revenue grew by 24% year over year to $137 million, with adjusted EBITDA for the segment increasing by 43% [18][19] - IP Optical Networks revenue was $84 million, a 2% increase year over year, with adjusted EBITDA showing a loss of $5 million [19][20] - Sales to service providers increased by 18% year over year, while enterprise revenue rose by 7% year over year [8][19] Market Data and Key Metrics Changes - Strong demand in North America, particularly from service providers and enterprise markets, including U.S. federal agencies [6][7] - IP Optical sales in North America grew over 45% year over year, driven by critical infrastructure projects [13] - Sales in Asia Pacific, particularly India, saw over 40% growth year over year, supported by major operators investing in network modernization [12][13] Company Strategy and Development Direction - The company is in a multi-year investment period to modernize communication networks across service providers and enterprise verticals [24][25] - Focus on leveraging the entire voice and IP networking portfolio to differentiate offerings against larger competitors [24][25] - Continued innovation in cloud-native voice and edge routing solutions to capture market share [6][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a robust demand picture for the second half of the year, projecting revenue growth of 15% to 20% compared to the first half [23][30] - Anticipated strong performance in Q4, similar to previous years, due to timing of enterprise deals and service provider projects [23][30] - Potential pressure on operating expenses and gross margins due to a weakening U.S. dollar [25][26] Other Important Information - The company announced a new stock repurchase program to buy back up to $50 million of common stock [22] - Cash from operations was a usage of $1 million, with a closing cash balance of $62 million [20] - The company expects a cash tax saving of approximately $15 million to $20 million for 2025 due to recent tax legislation [21] Q&A Session Summary Question: Clarification on gross margins being below expectations - Management explained that the lower gross margins were primarily due to a shift towards more hardware in the cloud and edge segment and increased professional services [34][35] Question: Insights on revenue guidance for Q3 - Management indicated that while Q3 revenue is expected to be flat sequentially, it will still show year-over-year growth [36][38] Question: Outlook on the separation of cloud and edge businesses - Management expressed confidence in the synergy between the two business segments, highlighting successful integration in projects with Verizon [39][40] Question: Commentary on classified replacement opportunities - Management noted a correlation between fiber upgrades and modernization of voice services, emphasizing cost savings from parallel upgrades [46][47] Question: CapEx spending environment - Management acknowledged a positive outlook for CapEx due to recent tax legislation allowing for immediate expensing of R&D investments [49][50] Question: FX impact on operations - Management confirmed that the weakening U.S. dollar had a minor impact in Q2 but could pose a headwind of approximately $2 million per quarter moving forward [60][61] Question: Details on Verizon's contribution to revenue - Management confirmed that Verizon accounted for over 20% of total sales in Q2, with expectations for continued strong performance [70][71] Question: Deferred revenue trends - Management explained that the increase in deferred revenue is indicative of future revenue growth, particularly from maintenance contracts [92][94] Question: Gross margin expectations for Q3 - Management projected an increase in gross margin for Q3 due to a favorable mix of software over hardware [62][63]

Financial Performance Highlights - Ribbon Communications reported Q2 2025 revenue of $221 million, a 15% year-over-year increase[9] - The company's gross margin for Q2 2025 was 52%[9] - Adjusted EBITDA for Q2 2025 reached $32 million, representing a 47% year-over-year growth[9] - For the first half of 2025, revenue totaled $402 million, an 8% increase year-over-year[9] - First half of 2025 Adjusted EBITDA was $38 million, a 13% increase year-over-year[9] Segment Performance - Cloud & Edge segment revenue for Q2 2025 was $137 million, a 24% increase year-over-year[20] - IP Optical Networks segment revenue for Q2 2025 was $84 million, a 2% increase year-over-year[26] Key Metrics and Outlook - The company's cash position at the end of Q2 2025 was $62 million[10] - Ribbon Communications maintains a net debt leverage of 2.3x[10] - The outlook for full year 2025 revenue is projected to be between $870 million and $890 million[46] - The outlook for full year 2025 Non-GAAP Adjusted EBITDA is projected to be between $130 million and $140 million[46]

Nokia shares fell before the start of regular trading after the Finnish maker of 5G gear cut its profit guidance, citing a weaker US dollar and tariffs https://t.co/mexKHddana ...

Core Viewpoint - Nokia has lowered its 2025 operating profit guidance due to adverse currency fluctuations and tariff impacts, adjusting the range from EUR 1.9 billion to EUR 2.4 billion down to EUR 1.6 billion to EUR 2.1 billion [2][4][7] Financial Guidance Update - The updated comparable operating profit outlook for 2025 is now EUR 1.6 billion to EUR 2.1 billion, down from the previous range of EUR 1.9 billion to EUR 2.4 billion [4][7] - Free cash flow conversion guidance remains unchanged at 50% to 80% from comparable operating profit [4] - The new guidance is based on a EUR:USD exchange rate of 1.17, compared to the previous rate of 1.04 used in January [2][4] Impact of External Factors - Currency fluctuations, particularly the weaker USD, are expected to have a negative impact of approximately EUR 230 million on the 2025 outlook, which includes EUR 140 million operationally and EUR 90 million from non-cash venture fund currency revaluations [3] - The current tariff landscape is anticipated to affect full year operating profit by EUR 50 million to EUR 80 million [3] Preliminary Q2 Financials - For the second quarter, Nokia expects to report net sales of approximately EUR 4.55 billion and a comparable operating profit of EUR 300 million, which includes a negative impact of EUR 50 million from its venture funds primarily related to currency [5][7] - The official release of the second quarter and half year 2025 financial results is scheduled for July 24, 2025 [5][6]

Core Viewpoint - Nokia has lowered its 2025 operating profit guidance due to adverse currency fluctuations and tariff impacts, adjusting the range from EUR 1.9 billion to EUR 2.4 billion down to EUR 1.6 billion to EUR 2.1 billion [2][8]. Financial Guidance Update - The updated comparable operating profit outlook for 2025 is now EUR 1.6 billion to EUR 2.1 billion, down from the previous range of EUR 1.9 billion to EUR 2.4 billion [4][8]. - The guidance for free cash flow conversion from comparable operating profit remains unchanged at 50% to 80% [4]. - The new guidance is based on a EUR:USD exchange rate of 1.17, compared to the previous rate of 1.04 used in January [2][4]. Impact of External Factors - Currency fluctuations, particularly the weaker USD, are expected to have a negative impact of approximately EUR 230 million on the operating profit, which includes EUR 140 million operationally and EUR 90 million from non-cash venture fund currency revaluations [3]. - The current tariff landscape is anticipated to further impact the full year operating profit by EUR 50 million to EUR 80 million [3]. Preliminary Financial Results - For the second quarter, Nokia expects to report net sales of approximately EUR 4.55 billion and a comparable operating profit of EUR 300 million, which includes a negative impact of EUR 50 million from its venture funds primarily related to currency [5][8]. - The official release of the second quarter and half-year 2025 financial results is scheduled for July 24, 2025 [5].

Core Viewpoint - Critical Infrastructure Technologies Ltd. (CiTech) is conducting a non-brokered private placement financing to raise up to C$500,000 through the issuance of up to 10,000,000 units, each consisting of one common share and one warrant [1][2] Financing Details - The offering price is set at C$0.05 per unit, with each warrant exercisable at $0.10 per share for a period of 36 months [1] - The net proceeds from the offering will be used for general working capital and compensation payments to Plutus [2] Debt Settlement - The company has agreed to settle certain management fees by issuing 10,000,000 settlement units at a deemed price of $0.05 per unit, similar in structure to the offering [4] - Each settlement unit also consists of one share and one warrant, with the same exercise terms as the offering [4] Equity Incentive Plan - An amended and restated equity incentive plan has been adopted, allowing for the issuance of up to 16,675,000 common shares to eligible participants [6] - The company has granted 7,450,000 stock options and 8,000,000 restricted share units under this plan [7] Consulting Agreement - CiTech has entered into a consulting agreement with Plutus Invest and Consulting GmbH for marketing and communications services over a twelve-month term, with a fee of approximately €100,000 [8]

Core Insights - Applied Optoelectronics Inc. (AOI) has completed testing and received certification from Charter Communications for its 1.8GHz amplifiers and QuantumLink™ remote management software, facilitating Charter's network evolution project [1][2]. Group 1: Product Development and Certification - AOI's latest HFC networking solutions, including system amplifiers, line extenders, and booster amplifiers, have been certified by Charter, enabling support for symmetrical and multi-gigabit services up to 10 Gbps downstream and 1 Gbps upstream [2][3]. - The Quantum18 amplifier lineup addresses the need for providers like Charter to transition from legacy systems while ensuring compatibility with existing amplifier housings [3]. Group 2: Collaboration and Innovation - AOI collaborates with Digicomm International to enhance the end-to-end experience for ongoing installations, leveraging Digicomm's logistics services for Quantum Bandwidth networking products [2]. - Charter Communications emphasizes the importance of AOI's products in driving broadband engineering innovation, particularly in Distributed Access Architecture and DOCSIS 4.0 network upgrades [4]. Group 3: Company Overview - AOI is a leading developer and manufacturer of advanced optical and HFC networking products, supplying critical infrastructure to tier-one customers across various markets, including cloud computing and telecom [5].