Nokia (NYSE: NOK) to cut 10,000 jobs as Q2 weak

Northern, WI 6/14/12 (StreetBeat) – Nokia (NYSE:NOK) plans to cut one in five jobs at its global cellphone business as it loses market share to rivals Apple (Nasdaq:AAPL) and Samsung (OTCBB:SSNLF) and burns through cash, raising new fears over its future.

In a second profit warning in nine weeks, Nokia said on Thursday that its phone business would post a deeper-than-expected loss in the second quarter due to tougher competition.

Once the world's dominant mobile phone provider, Nokia was wrongfooted by the rise of smartphones and is struggling to keep up with Apple, Samsumg and Google (Nasdaq: GOOG). It is also losing market share in cheaper, more basic phones.

Chief Executive Stephen Elop is placing hopes of a turnaround on a new range of smartphones called Lumia, which use largely untried Microsoft Corp (Nasdaq: MSFT) software. But Lumia sales have so far been slow, disappointing investors.

"The job cuts and profit warning underline the seriousness of the challenges Nokia is facing, particularly in light of the eye-watering competition from Apple and Samsung," said Ben Wood, head of research at CCS Insight.

Nokia, whose cash position is increasingly scrutinized by investors, also said restructuring-related cash outflows would be around 650 million euros in the remaining three quarters of 2012 and around 600 million in 2013.

Shares in Finland-based Nokia were down 10.5 percent to 1.99 euros, below the psychologically important 2 euros mark last, not seen since 1996. The stock has crashed more than 70 percent since it announced the switch to Microsoft's software in February 2011.

Analysts have said that even with the dramatic fall in the share price, the worsening outlook made it hard to judge how much lower the shares could go.

"I won't comment on the stock price anymore, since it's been seen over and over, that there is no definitive bottom," said Evli analyst Mikko Ervasti.

"People are worried over Lumia sales. I think expectations for the third quarter will be cut," said Nordea analyst Sami Sarkamies.

The job cuts, which include the closure of Nokia's only plant in Finland, bring total planned cuts at the group since Elop took over as chief executive in 2010 to more than 40,000.

The move will result in additional restructuring charges of around 1 billion euros by the end of 2013.

The company said it expects its operating margin in the second quarter to be below the negative 3 percent level reported in the first quarter. It previously forecast it would be similar to or below that level.

Nokia also said it would sell luxury phone business Vertu to venture firm EQT and revamp its management team.

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Ahead of the Bell: All eyes on Apple (Nasdaq: AAPL) stock

Northern, WI 4/17/12 (StreetBeat) -- Investors are wondering what is in store for Apple Inc. (Nasdaq: AAPL) after shares of the world's most valuable public company closed down 4 percent on Monday, their fifth straight drop. But analysts remain upbeat on the iPhone and iPad maker's shares, encouraging investors to buy the stock after its decline.

The Cupertino, Calif., company has lost $50 billion of its market capitalization over the past five days and was worth about $541 billion on Tuesday — still well ahead of Exxon Mobil Corp. (NYSE: XOM), the world's second-most valuable company, at $395 billion.

The stock slide comes after a rally that had driven Apple's shares up nearly 60 percent in 2012, driving its market cap to $600 billion. Only one other public company, Microsoft Corp. (Nasdaq: MSFT), has been worth that much. Shares peaked at $644 on April 10.

Before the market opened Tuesday, Apple stock dipped $2.68, or less than 1 percent, to $577.45.

The drop in stock price and market cap is a cause for concern for the stock market. Not only is Apple a bellwether for the technology industry, it is also the biggest stock in the Standard & Poor's 500 index and the largest on the Nasdaq Composite index. Its decline weighs on broader stock measures.

The drop in the company's shares comes about two weeks after an analyst set a $1,001 price target on Apple's shares, the highest yet. That implies a company value of $933 billion, well above what any company has ever been worth. But since that price target was set by Topeka Capital Markets' Brian White on April 2, shares of the maker of iPads and iPhones have dropped 6.2 percent.

One cloud hovering over the tech giant this month is the U.S. government's accusations that it conspired with major book publishers to raise the price of e-books. Apple denied that accusation on Friday.

Many market watchers wonder if Apple's stock may just be coming back down to earth. The company's shares have risen 77 percent over the past year and are still up 43 percent in 2012. Apple's stock price ascent this year has been fueled by blowout sales of iPhones and iPads in the holiday quarter, plus the announcement that the company will start paying a dividend this summer and buy back shares. That's a way to reward shareholders by tapping Apple's $97.6 billion cash hoard.

Sterne Agee & Leach's Shaw Wu maintained a "Buy" rating and $750 price target for Apple, saying that the company remains a top pick and that investors should take advantage of the recent stock price decline.

Baird's William Power echoed that, reiterating his "Outperform" rating and $700 price target on the company's shares.

Please contact www.thestreetbeat.com for interest in our latest investor relations platform the “CEO Interview Series” with its host Steve Kanaval. The package includes a one-on-one interview with a seasoned industry professional; published segment to our web site with embedded audio/video file; and a compressed file that can be easily e-mailed out to your current and/or potential investors. Please e-mail bflautt@gmail.com or call (662) 392-0740 for pricing and scheduling.

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AOL (NYSE: AOL) to sell 800 patents to Microsoft (Nasdaq: MSFT) for $1 billion

Orlando, FL 4/9/12 (StreetBeat) -- AOL Inc (NYSE: AOL) said it would sell over 800 of its patents and related applications to Microsoft Corp (NASDAQ: MSFT), and would grant Microsoft a non-exclusive license to the patents it retains, for slightly over $1 billion in cash.

AOL's shares jumped 37 percent to $25.16 in trading before the bell on Monday. They closed at $18.42 on Friday on the New York Stock Exchange.

The Internet company said it plans to return a "significant portion of the sale proceeds" to shareholders.

AOL will continue to hold over 300 patents including advertising, search, and mapping, and said it received a license to the patents being sold to Microsoft.

"This is a valuable portfolio that we have been following for years and analyzing in detail for several months," Microsoft's General Counsel Brad Smith said.

Last month, media reports said that AOL had hired Evercore Partners after being pushed by activist shareholder Starboard Value LP who believed the company's patent portfolio could produce more than $1 billion in licensing income if properly monetized.

The transaction, which is expected to be completed by the end of 2012, includes the sale of an AOL unit on which AOL expects to record a capital loss for tax purposes.

Evercore Partners and Goldman Sachs acted as financial advisors to AOL. Wachtell, Lipton, Rosen & Katz and Finnegan, Henderson, Farabow, Garrett & Dunner acted as legal counsel.

If the deal falls through, Microsoft will pay AOL a termination fee of $211.2 million, AOL said in a regulatory filing.

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