The joint infrastructure venture between Nokia and Siemens appears to be heading upwards in its efforts to achieve profitability. The company reported a 25 per cent leap in Q4 revenues and managed to end its long run of quarterly operating losses.
Despite many rumours that the two firms were becoming increasingly unhappy with the JV, the nine-month-old company is looking to achieve almost all the €2 billion it has targeted in annual cost synergies by the end of 2008.
In the fourth quarter, Nokia Siemens Networks (NSN) generated revenues of €4.58 billion, reported gross margins of 29.7 per cent (up sequentially from 28.3 per cent), and broke even at the operating profit level after various one-off charges and restructuring costs.
However, this news came as arch-rival Huawei issued a press release stating that it had beaten NSN to win a contract to build a US$46 million 3G network in the Middle East for state-owned incumbent Omantel's cellular arm, Oman Mobile.