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Nokia names Suri CEO as sales drop

Suri previously headed Nokia's networks unit, its biggest business following the sale of its handsets unit to Microsoft

By Mikael Ricknäs
April 29, 2014 04:41 AM ET

IDG News Service - Nokia has named the head of its networks division, Rajeev Suri, as its new CEO from May 1. He will take over from company chairman Risto Siilasmaa, who has been serving as acting CEO.

On Tuesday it also reported a profit for its continuing operations, but a drop in sales and an overall loss for the first quarter. Nokia retains its networking equipment unit, the Here mapping business, and its patent portfolio following completion of the sale of its Devices & Services business to Microsoft on Friday.

A majority of Nokia's future revenue will come from the networking unit, previously headed by Suri, making him a logical appointment as CEO. Suri has served as the CEO of Nokia Solutions and Networks (formerly the joint venture Nokia Siemens Networks) since October 2009. Now that it has full control of the division, Nokia plans to refer to NSN simply as its Networks business unit.

The success of the unit will be key to the company's future. As network operators adopt cloud-based infrastructures and technologies such as network functions virtualization, their networks will become more nimble and less reliant on proprietary hardware. Nokia plans to take advantage of these changes, saying it has conducted trials and pre-commercial live projects with more than 50 customers last year.

But the company also aims to get the most out of its patent portfolio, and will invest in location services. The sale of the devices business to Microsoft leaves Nokia with a significant cash pile, equivalent to a!7.1 billion in net cash if the sale had closed during the first quarter, it said.

The company reported a first-quarter loss of $312 million.

Sales from continuing operations fell 15 percent year on year, to 3.66 billion as of March 31, the last day of the period reported.

Send news tips and comments to mikael_ricknas@idg.com

Reprinted with permission from IDG.net. Story copyright 2014 International Data Group. All rights reserved.
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