Nokia (NYSE: NOK) has published its Q1 2012 financials, for the three months ending 31 March.

Net sales were €7.35 billion (around $9.8 billion), down 29 percent year-on-year.

58 percent of sales were generated by its Device and Services division, 42 percent from Nokia Siemens Networks, and 2 percent from its Location and Commerce division, including NATVEQ.

The company made an operating loss of €1.34 billion (around $1.8 billion), compared to a €439 million profit 12 months ago.

In terms of net cash flow from operations, Nokia lost €590 million (around $790 million). It ended the quarter with net cash and other liquid assets worth €4.9 billion ($6.5 billion).

Hard times

"We are navigating through a significant company transition in an industry environment that continues to evolve and shift quickly. Over the last year we have made progress on our new strategy, but we have faced greater than expected competitive challenges," commented CEO Stephen Elop.

"We have launched four Lumia devices ahead of schedule to encouraging awards and popular acclaim. The actual sales results have been mixed.

"We exceeded expectations in markets including the United States, but establishing momentum in certain markets including the UK has been more challenging."

Tail wags dog

During the three months, Nokia sold 82.7 million mobile devices, down 24 percent from the 108.5 million it sold 12 months ago.

Of that total, 11.9 million were smartphones, and around 2 million were Lumia devices. 

It generated €1.7 billion ($2.3 billion) from smartphone sales and €2.3 billion ($3 billion) from sales of feature phones.

However, the company recognises that its cost base remains much too high. It will accelerate plans to reduce costs, especially in its Devices and Services division.

Nokia hopes to make savings worth more than €1 billion (around $1.3 billion) by 2013.

[source: Nokia]