Good News for Nokia, but Still a Long Road Aheadhttp://www.fool.com/investing/general/2013/03/08/good-news-for-nokia-but-still-a-long-road-ahead.aspx Chris Neiger
March 8, 2013
Yesterday, Nokia (NYSE: NOK) filed a 20-F with the SEC and said the company would net slightly more with its current Microsoft (NASDAQ: MSFT) deal this year than it pays out in software fees to the Redmond company. That's good news for Nokia investors, but there's still a lot of work to be done.
Let's make a deal
In the filing, Nokia said, "Over the life of the agreement the total amount of the platform support payments is expected to slightly exceed the total amount of the minimum software royalty commitment payments. As of the end of 2012, the amount of platform support payments received by Nokia has exceeded the amount of minimum software royalty commitment payments made to Microsoft, thus the net cash flows have been in our favor."
So far, Nokia has sold a total of 15 million Lumia phones, 1 million in the last few months of 2011 and 14 million in 2012, with 4.4 million of those coming in Q4 2012. The money from the Microsoft deal and the current Lumia sales are all good news for Nokia, but the company still faces some major difficulties.
The road ahead
If the Windows Phone platform takes off, Nok