What’s Nokia Technologies?
Nokia Technologies is one of the business segments for Europe-based (FEP) (EFA) Nokia (NOK). Following the sale of its mobile phone business to Microsoft (MSFT) in 2014, this business primarily focuses on digital media, brand licensing, and patent licensing.
Net sales in the Nokia Technologies business fell 27% YoY (year-over-year) in 1Q16—driven by a variety of nonrecurring items. Sales rose 10% YoY in 1Q16, in case we exclude these items, primarily driven by higher intellectual property licensing income. The firm continued to make progress in 1Q16. It expanded in digital media and digital health.
In 1Q16, Nokia started shipping its OZO virtual reality camera. OZO is the a virtual reality camera for content creators. Now, OZO is available in Europe. It can be purchased or rented through authorized reseller partners in the US and Canada (EWC). The firm also signed a deal with Disney (DIS) where OZO will support the creation of virtual reality experiences in Disney theatrical releases.
Licensing discussions with Samsung continued in 1Q16
In the last quarter, Nokia continued licensing discussions with Samsung (SSNLF) as a follow-on to the arbitration outcome that was announced in February 2016. Nokia’s CEO, Rajeev Suri, stated that “These discussions are a big priority for us and receive considerable focus from myself and others on the senior management team.”