Nokia Projects Missing 2023 Sales Targets Due To Prolonged Licensing Talks

Nokia Corporation (NYSE: NOK) said it will not achieve its 2023 sales outlook, as licensing renewal discussions are expected to continue into 2024.

While there have been intense negotiations between the relevant parties and courts around the world have found in Nokia's favor, the company will prioritize protecting the value of its patent portfolio versus achieving certain timelines for resolution, the company said in a statement, as reported by Bloomberg.

Due to this development and ongoing limitations on customer spending in the quarter, Nokia foresees falling short of its financial predictions for the entire year 2023, which will affect net sales, comparable operating margin, and free cash flow.

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As the financial period is not concluded – Nokia said it is not able to provide preliminary financial results and will report its fourth quarter and full year 2023 financial results on Jan. 25, 2024, according to Bloomberg.

Regarding the Q4 2023 performance of Nokia's Networks businesses to date, net sales will see significant improvement sequentially. Nokia's Networks businesses include Network Infrastructure, Mobile Networks, and Cloud and Network Services.

The quarter has proved somewhat more difficult than expected, given ongoing customer spending constraints and the recently communicated customer purchasing decision.

The company has observed noticeably improved order trends in the fourth quarter, especially in Network Infrastructure.

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Price Action: NOK shares closed 1.48% higher at $3.42 on Friday.

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