Executive Summary

Nokia Corporation (Nokia) is into wireless communications products and services. The company is mainly engaged in designing, developing and manufacturing of a wide range of communication devices. It also provides equipment, solutions and services for communications networks. Nokia offers internet services in its communication devices, enabling the users to experience music, navigation, video, television, imaging, and games. The company operates its business through three reportable segments, namely, Devices and Services, NAVTEQ, and Nokia Siemens Networks. The Devices and Services segment comprises three business groups: Mobile Phones, Multimedia, and Enterprise Solutions. It offers digital map information, and related location based content and services under the NAVTEQ brand. The company products are sold in over 150 countries in Europe, Middle East and Africa, Asia-Pacific, North America, and Latin America. Nokia is headquartered in Espoo, Finland. In November 2009, the company launched its Nokia N900 in the US along with five new mobile phones and Nokia Life Tools in Indonesia. Nokia, with SAP and Giesecke & Devrient, announced their plans to establish a new company called Original1 for product authentication and anti-counterfeiting services worldwide in October 2009.We have done financial statements analysis of overall Nokia Company.

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Chapter 1

Introduction To Nokia
Nokia Corporation is a Finnish multinational communications corporation that is headquartered in Keilaniemi, Espoo, a city neighbouring Finland's capital Helsinki.Nokia is engaged in the manufacturing of mobile devices and in converging Internet and communications industries, with over 132,000 employees in 120 countries, sales in more than 150 countries and global annual revenue of over 42 billion and operating profit of 2 billion as of 2010.It is the world's largest manufacturer of mobile phones: its global device market share was 31% in the fourth quarter 2010, up from an estimated 30% in third quarter of 2010 but down from an estimated 35% in the fourth quarter of 2009. Nokia's estimated share of the converged mobile device market was 31% in the fourth quarter, compared with 38% in the third quarter 2010.Nokia produces mobile devices for every major market segment and protocol, including GSM, CDMA, and W-CDMA (UMTS). Nokia offers Internet services such as applications, games, music, maps, media and messaging through its Ovi platform. Nokia's subsidiary Nokia Siemens Networks produces telecommunications network equipment, solutions and services. Nokia is also engaged in providing free digital map information and navigation services through its wholly-owned subsidiary Navteq. Nokia also has greater dependency on England based company duo namely Symbian Corporation for its mobile operating systems and OVI for its mobile based application software development and distribution, which has made Nokia as highest selling mobile phone vendor within the last few years. Nokia has sites for research and development, manufacture and sales in many countries throughout the world. As of December 2010, Nokia had R&D presence in 16 countries and employed 35,870 people in research and development, representing approximately 27% of the group's total workforce. The Nokia Research Center, founded in 1986, is Nokia's industrial research unit consisting of about 500 researchers, engineers and scientists. It has sites in seven countries: Finland, China, India, Kenya, Switzerland, the United Kingdom and the United States. Besides its research centers, in 2001 Nokia founded (and owns) INdT Nokia Institute of Technology, a R&D institute located in Brazil. Nokia operates a total of 4 key manufacturing areas located at Salo, Finland; Beijing and Dongguan , China; and Masan, South Korea. Nokia's industrial design department is headquartered in Soho in London, UK with significant satellite offices in Helsinki, Finland and Calabasas, California in the USA. Nokia is a public limited liability company listed on the Helsinki, Frankfurt, and New York stock exchanges. Nokia plays a very large role in the economy of Finland; it is by far the largest Finnish company, accounting for about a third of the market capitalization of the Helsinki Stock Exchange (OMX Helsinki) as of 2007, a unique situation for an industrialized country. It is an important employer in Finland and several small companies have grown into large ones as its partners and subcontractors. Nokia increased Finland's GDP by more than 1.5% in 1999 alone. In 2004 Nokia's share of the Finnish GDP was 3.5% and accounted for almost a quarter of Finland's exports in 2003. Page | 2

In recent years, Finns have consistently ranked Nokia as one of the best Finnish brands. In 2008, it was the 27th most respected brand among Finns, down from sixth place in 2007. The Nokia brand, valued at $29.5 billion, is listed as the eight most valuable global brand in the Interbrand/BusinessWeek Best Global Brands list of 2010 (first non-US company). It is the number one brand in Asia (as of 2007) and Europe (as of 2009), the 41st most admirable company worldwide in Fortune's World's Most Admired Companies list of 2010 (third in Network and Other Communications Equipment, seventh non-US company), and the world's 120th largest company as measured by revenue in Fortune Global 500 list of 2010. As of 2010, AMR Research ranks Nokia's global supply chain number nineteen in the world. In July 2010, Nokia announced that their profits had dropped 40%. In the global smartphone rivalry, Nokia dominates the worldwide mobile markets, but remains fragile in the United States. On 11 February 2011, Nokia announced a partnership with Microsoft which will mean most future Nokia smart phones will be powered by the Windows Phone 7 operating system. The Nokia House, Nokia's head office located by the Gulf of Finland in Keilaniemi, Espoo, was constructed between 1995 and 1997. It is the workplace of more than 1,000 Nokia employees.

History

Fredrik Idestam, founder of Nokia.

Statesman Leo Mechelin, co-founder of Nokia.

The predecessors of the modern Nokia were the Nokia Company (Nokia Aktiebolag), Finnish Rubber Works Ltd (Suomen Gummitehdas Oy) and Finnish Cable Works Ltd (Suomen Kaapelitehdas Oy). Nokia's history starts in 1865 when mining engineer Fredrik Idestam established a groundwood pulp mill on the banks of the Tammerkoski rapids in the town of Tampere, in southwestern Finland, and started manufacturing paper. In 1868, Idestam built a second mill near the town of Nokia, fifteen kilometers (nine miles) west of Tampere by the Nokianvirta river, which had better resources for hydropower production. In 1871, Idestam, with the help of his close friend statesman Leo Mechelin, renamed and transformed his firm into a share company, thereby founding the Nokia Company, the name it is still known by today.

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Toward the end of the 19th century, Mechelin's wishes to expand into the electricity business were at first thwarted by Idestam's opposition. However, Idestam's retirement from the management of the company in 1896 allowed Mechelin to become the company's chairman (from 1898 until 1914) and sell most shareholders on his plans, thus realizing his vision. In 1902, Nokia added electricity generation to its business activities.

Industrial conglomerate
In 1898, Eduard Poln founded Finnish Rubber Works, manufacturer of galoshes and other rubber products, which later became Nokia's rubber business. At the beginning of the 20th century, Finnish Rubber Works established its factories near the town of Nokia and began using Nokia as its product brand. In 1912, Arvid Wickstrm founded Finnish Cable Works, producer of telephone, telegraph and electrical cables and the foundation of Nokia's cable and electronics businesses. At the end of the 1910s, shortly after World War I, the Nokia Company was nearing bankruptcy. To ensure the continuation of electricity supply from Nokia's generators, Finnish Rubber Works acquired the business of the insolvent company. In 1922, Finnish Rubber Works acquired Finnish Cable Works. In 1937, Verner Weckman, a sport wrestler and Finland's first Olympic Gold medalist, became President of Finnish Cable Works, after 16 years as its Technical Director. After World War II, Finnish Cable Works supplied cables to the Soviet Union as part of Finland's war reparations. This gave the company a good foothold for later trade. The three companies, which had been jointly owned since 1922, were merged to form a new industrial conglomerate, Nokia Corporation in 1967 and paved the way for Nokia's future as a global corporation. The new company was involved in many industries, producing at one time or another paper products, car and bicycle tires, footwear (including rubber boots), communications cables, televisions and other consumer electronics, personal computers, electricity generation machinery, robotics, capacitors, military communications and equipment (such as the SANLA M/90 device and the M61 gas mask for the Finnish Army), plastics, aluminium and chemicals. Each business unit had its own director who reported to the first Nokia Corporation President, Bjrn Westerlund. As the president of the Finnish Cable Works, he had been responsible for setting up the companys first electronics department in 1960, sowing the seeds of Nokias future in telecommunications. Eventually, the company decided to leave consumer electronics behind in the 1990s and focused solely on the fastest growing segments in telecommunications. Nokian Tyres, manufacturer of tyres split from Nokia Corporation to form its own company in 1988 and two years later Nokian Footwear, manufacturer of rubber boots, was founded. During the rest of the 1990s, Nokia divested itself of all of its nontelecommunications businesses.

Telecommunications era
The seeds of the current incarnation of Nokia were planted with the founding of the electronics section of the cable division in 1960 and the production of its first electronic device in 1962: a pulse analyzer designed for use in nuclear power plants. In the 1967 fusion, that section was separated into its own division, and began Page | 4

manufacturing telecommunications equipment. A key CEO and subsequent Chairman of the Board was vuorineuvos Bjrn "Nalle" Westerlund (19122009), who founded the electronics department and let it run a loss for 15 years.

Networking equipment
In the 1970s, Nokia became more involved in the telecommunications industry by developing the Nokia DX 200, a digital switch for telephone exchanges. The DX 200 became the workhorse of the network equipment division. Its modular and flexible architecture enabled it to be developed into various switching products. In 1984, development of a version of the exchange for the Nordic Mobile Telephony network was started. For a while in the 1970s, Nokia's network equipment production was separated into Telefenno, a company jointly owned by the parent corporation and by a company owned by the Finnish state. In 1987, the state sold its shares to Nokia and in 1992 the name was changed to Nokia Telecommunications. In the 1970s and 1980s, Nokia developed the Sanomalaite jr jestelm ("Message device system"), a digital, portable and encrypted text-based communications device for the Finnish Defence Forces. The current main unit used by the Defence Forces is the Sanomalaite M/90 (SANLA M/90).

First mobile phones

The Mobira Cityman 150, Nokia's NMT-900 mobile phone from 1989 (left), compared to the Nokia 1100 from 2003. The Mobira Cityman line was launched in 1987. The technologies that preceded modern cellular mobile telephony systems were the various "0G" pre-cellular mobile radio telephony standards. Nokia had been producing commercial and some military mobile radio communications technology since the 1960s, although this part of the company was sold some time before the later company rationalization. Since 1964, Nokia had developed VHF radio simultaneously with Salora Oy. In 1966, Nokia and Salora started developing the ARP standard (which stands for Autoradiopuhelin, or car radio phone in English), a car-based mobile radio telephony system and the first commercially operated public mobile phone network in Finland. It went online in 1971 and offered 100% coverage in 1978. In 1979, the merger of Nokia and Salora resulted in the establishment of Mobira Oy. Mobira began developing mobile phones for the NMT (Nordic Mobile Telephony) network standard, the first-generation, first fully-automatic cellular phone system that went online in 1981,In 1982, Mobira introduced its first car phone, the Mobira Senator for NMT-450 networks.

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Nokia bought Salora Oy in 1984 and now owning 100% of the company, changed the company's telecommunications branch name to Nokia-Mobira Oy. The Mobira Talkman, launched in 1984, was one of the world's first transportable phones. In 1987, Nokia introduced one of the world's first handheld phones, the Mobira Cityman 900 for NMT-900 networks (which, compared to NMT-450, offered a better signal, yet a shorter roam). While the Mobira Senator of 1982 had weighed 9.8 kg (22 lb) and the Talkman just under 5 kg (11 lb), the Mobira Cityman weighed only 800 g (28 oz) with the battery and had a price tag of 24,000 Finnish marks (approximately 4,560). Despite the high price, the first phones were almost snatched from the sales assistants hands. Initially, the mobile phone was a "yuppie" product and a status symbol. Nokia's mobile phones got a big publicity boost in 1987, when Soviet leader Mikhail Gorbachev was pictured using a Mobira Cityman to make a call from Helsinki to his communications minister in Moscow. This led to the phone's nickname of the "Gorba". In 1988, Jorma Nieminen, resigning from the post of CEO of the mobile phone unit, along with two other employees from the unit, started a notable mobile phone company of their own, Benefon Oy (since renamed to GeoSentric). One year later, Nokia-Mobira Oy became Nokia Mobile Phones.

Involvement in GSM
Nokia was one of the key developers of GSM (Global System for Mobile Communications), the second-generation mobile technology which could carry data as well as voice traffic. NMT (Nordic Mobile Telephony), the world's first mobile telephony standard that enabled international roaming, provided valuable experience for Nokia for its close participation in developing GSM, which was adopted in 1987 as the new European standard for digital mobile technology. Nokia delivered its first GSM network to the Finnish operator Radiolinja in 1989. The world's first commercial GSM call was made on July 1, 1991 in Helsinki, Finland over a Nokia-supplied network, by then Prime Minister of Finland Harri Holkeri, using a prototype Nokia GSM phone. In 1992, the first GSM phone, the Nokia 1011, was launched. The model number refers to its launch date, 10 November. The Nokia 1011 did not yet employ Nokia's characteristic ringtone, the Nokia tune. It was introduced as a ringtone in 1994 with the Nokia 2100 series. GSM's high-quality voice calls, easy international roaming and support for new services like text messaging (SMS) laid the foundations for a worldwide boom in mobile phone use. GSM came to dominate the world of mobile telephony in the 1990s, in mid-2008 accounting for about three billion mobile telephone subscribers in the world, with more than 700 mobile operators across 218 countries and territories. New connections are added at the rate of 15 per second, or 1.3 million per day.

Personal computers and IT equipment

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In the 1980s, Nokia's computer division Nokia Data produced a series of personal computers called MikroMikko. MikroMikko was Nokia Data's attempt to enter the business computer market. The first model in the line, MikroMikko 1, was released on September 29, 1981 around the same time as the first IBM PC. However, the personal computer division was sold to the British ICL (International Computers Limited) in 1991, which later became part of Fujitsu. MikroMikko remained a trademark of ICL and later Fujitsu. Internationally the MikroMikko line was marketed by Fujitsu as the ErgoPro. Fujitsu later transferred its personal computer operations to Fujitsu Siemens Computers, which shut down its only factory in Espoo, Finland (in the Kilo district, where computers had been produced since the 1960s) at the end of March 2000, thus ending large-scale PC manufacturing in the country. Nokia was also known for producing very high quality CRT and early TFT LCD displays for PC and larger systems application. The Nokia Display Products' branded business was sold to ViewSonic in 2000. In addition to personal computers and displays, Nokia used to manufacture DSL modems and digital set-top boxes. Nokia re-entered the PC market in August 2009 with the introduction of the Nokia Booklet 3G mini laptop.

Challenges of growth
In the 1980s, during the era of its CEO Kari Kairamo, Nokia expanded into new fields, mostly by acquisitions. In the late 1980s and early 1990s, the corporation ran into serious financial problems, a major reason being its heavy losses by the television manufacturing division and businesses that were just too diverse. These problems, and a suspected total burnout, probably contributed to Kairamo taking his own life in 1988. After Kairamo's death, Simo Vuorilehto became Nokia's Chairman and CEO. In 19901993, Finland underwent severe economic depression, which also struck Nokia. Under Vuorilehto's management, Nokia was severely overhauled. The company responded by streamlining its telecommunications divisions, and by divesting itself of the television and PC divisions. Probably the most important strategic change in Nokia's history was made in 1992, however, when the new CEO Jorma Ollila made a crucial strategic decision to concentrate solely on telecommunications. Thus, during the rest of the 1990s, the rubber, cable and consumer electronics divisions were gradually sold as Nokia continued to divest itself of all of its non-telecommunications businesses. As late as 1991, more than a quarter of Nokia's turnover still came from sales in Finland. However, after the strategic change of 1992, Nokia saw a huge increase in sales to North America, South America and Asia. The exploding worldwide popularity of mobile telephones, beyond even Nokia's most optimistic predictions, caused a logistics crisis in the mid-1990s. This prompted Nokia to overhaul its entire logistics operation. By 1998, Nokias focus on telecommunications and its early investment in GSM technologies had made the company the world's largest mobile phone manufacturer. Between 1996 and 2001, Nokias turnover increased almost fivefold Page | 7

from 6.5 billion euros to 31 billion euros. Logistics continues to be one of Nokia's major advantages over its rivals, along with greater economies of scale.

Product releases

Nokia released its first touch screen phone, the Nokia 7710, which was a huge success. In May 2007, Nokia announced that its Nokia 1100 handset, launched in 2003, with over 200 million units shipped, was the best-selling mobile phone of all time and the world's top-selling consumer electronics product. In November 2007, Nokia announced and released the Nokia N82, its first N-series phone with Xenon flash. At the Nokia World conference in December 2007, Nokia announced their "Comes with Music" program: Nokia device buyers are to receive a year of complimentary access to music downloads. The service became commercially available in the second half of 2008. Nokia Productions was the first ever mobile filmmaking project directed by Spike Lee. Work began in April 2008, and the film premiered in October 2008. In 2008, Nokia released the Nokia N97 which was marketed to directly compete with the other BlackBerry-type devices offering a full "Qwerty" keyboard and cheaper prices. Nokia announced in August 2009 that they will be selling a high-end Windows-based mini laptop called the Nokia Booklet 3G. On September 2, 2009, Nokia launched two new music and social networking phones, the X6 and X3. The Nokia X6 features 32GB of on-board memory with a 3.2" finger touch interface and comes with a music playback time of 35 hours. The Nokia X3 is a first series 40 Ovi Store-enabled device. The X3 is a music device that comes with stereo speakers, built-in FM radio, and a 3.2 megapixel camera. On September 10, 2009, Nokia unveiled a new handset, the 7705 Twist, a phone with a sports square shape that swivels open to reveal a full QWERTY keypad. The new mobile, which will be available exclusively through Verizon Wireless, features a 3 megapixel camera, web browsing, voice commands and weighs around 3.44 ounces.

Plant movements
Nokia opened its Komrom, Hungary mobile phone factory on May 5, 2000. In March 2007, Nokia signed a memorandum with Cluj County Council, Romania to open a new

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plant near the city in Jucu commune. Moving the production from the Bochum, Germany factory to a low wage country created an uproar in Germany.

Reorganizations
In April 2003, the troubles of the networks equipment division caused the corporation to resort to similar streamlining practices on that side, including layoffs and organizational restructuring. This diminished Nokia's public image in Finland, and produced a number of court cases and an episode of a documentary television show critical of Nokia. On February 2006, Nokia and Sanyo announced a memorandum of understanding to create a joint venture addressing the CDMA handset business. But in June, they announced ending negotiations without agreement. Nokia also stated its decision to pull out of CDMA research and development, to continue CDMA business in selected markets. In June 2006, Jorma Ollila left his position as CEO to become the chairman of Royal Dutch Shell and to give way for Olli-Pekka Kallasvuo. In May 2008, Nokia announced on their annual stockholder meeting that they want to shift to the Internet business as a whole. Nokia no longer wants to be seen as the telephone company. Google, Apple and Microsoft are not seen as natural competition for their new image but they are considered as major important players to deal with. In November 2008, Nokia announced it was ceasing mobile phone distribution in Japan. Following early December, distribution of Nokia E71 is cancelled, both from NTT docomo and SoftBank Mobile. Nokia Japan retains global research & development programs, sourcing business, and an MVNO venture of Vertu luxury phones, using docomo's telecommunications network.

Acquisitions
The Nokia E55, a mobile phone in the business segment and part of the Nokia Eseries range. On September 22, 2003, Nokia acquired Sega.com, a branch of Sega which became the major basis to develop the Nokia N-Gage device. On November 16, 2005, Corporation, a provider synchronization software, Nokia and Intellisync of data and PIM signed a definitive Page | 9

agreement for Nokia to acquire Intellisync. Nokia completed the acquisition on February 10, 2006. On June 19, 2006, Nokia and Siemens AG announced the companies would merge their mobile and fixed-line phone network equipment businesses to create one of the world's largest network firms, Nokia Siemens Networks.[95] Each company has a 50% stake in the infrastructure company, and it is headquartered in Espoo, Finland. The companies predicted annual sales of 16 bn and cost savings of 1.5 bn a year by 2010. About 20,000 Nokia employees were transferred to this new company. On August 8, 2006, Nokia and Loudeye Corp. announced that they had signed an agreement for Nokia to acquire online music distributor Loudeye Corporation for approximately US $60 million. The company has been developing this into an online music service in the hope of using it to generate handset sales. The service, launched on August 29, 2007, is aimed to rival iTunes. Nokia completed the acquisition on October 16, 2006. In July 2007, Nokia acquired all assets of Twango, the comprehensive media sharing solution for organizing and sharing photos, videos and other personal media. In September 2007, Nokia announced its intention to acquire Enpocket, a supplier of mobile advertising technology and services. In October 2007, pending shareholder and regulatory approval, Nokia bought Navteq, a U.S.-based supplier of digital mapping data, for a price of $8.1 billion. Nokia finalized the acquisition on July 10, 2008. In September, 2008, Nokia acquired OZ Communications, a privately held company with approximately 220 employees headquartered in Montreal, Canada. On July 24, 2009, Nokia announced that it will acquire certain assets of cellity, a privately owned mobile software company which employs 14 people in Hamburg, Germany. The acquisition of cellity was completed on August 5, 2009. On September 11, 2009, Nokia announced the acquisition of "certain assets of Plum Ventures, Inc, a privately held company which employed approximately 10 people with main offices in Boston, Massachusetts. Plum will complement Nokias Social Location services". On March 28, 2010, Nokia announced the acquisition of Novarra, the mobile web browser firm from Chicago. Terms of the deal were not disclosed.Novarra is a privately-held company based in Chicago, IL and provider of a mobile browser and service platform and has more than 100 employees. On April 10, 2010, Nokia announced its acquisition of MetaCarta, whose technology was planned to be used in the area of local search, particularly involving location and other services. Financial details of acquisition were not disclosed.

Alliance with Microsoft

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On 11 February 2011, Nokia's CEO Stephen Elop, a former Microsoft employee, unveiled a new strategic alliance with Microsoft, and announced it would replace Symbian and MeeGo with Windows Phone 7. Nokia will, however, retain Symbian for use in mid-to-low-end devices. It will also invest into the Series 40 platform and release a single MeeGo product in 2011. As part of the restructuring plan, Nokia plan to reduce spending on research and development, instead refocusing on customising and enhancing the software line for Windows Phone 7. Nokia's "applications and content store" (Ovi) will be integrated into Microsoft Marketplace, while Nokia Maps will be at the heart of Microsoft's Bing and AdCenter. Microsoft will provide developer tools to Nokia, to replace the Qt framework which will not be supported by Windows Phone 7 devices. Symbian is now described as a "franchise platform" with Nokia planning to sell 150 million Symbian devices into the future. MeeGo emphasis will be on longer-term exploration with plans to ship "a MeeGo-related product" later this year. Microsoft's search engine, Bing, will be the search engine for all Nokia phones. Nokia also will get some level of customisation on WP7. After this announcement, Nokia's share price fell about 14%, its biggest drop since July 2009. As Nokia is the largest mobile phone manufacturer worldwide the alliance will make Microsoft's Windows Phone 7 a stronger contender against Android and iOS.

Divisions
Since July 1, 2010, Nokia comprises three business groups: Mobile Solutions, Mobile Phones and Markets. The three units receive operational support from the Corporate Development Office, led by Kai istm, which is also responsible for exploring corporate strategic and future growth opportunities. On April 1, 2007, Nokias Networks business group was combined with Siemens carrier-related operations for fixed and mobile networks to form Nokia Siemens Networks, jointly owned by Nokia and Siemens and consolidated by Nokia.

Mobile Solutions

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The Nokia N900, a Maemo 5 Linux based mobile Internet device and touchscreen smartphone from Nokia's Nseries portfolio. Mobile Solutions is responsible for Nokia's portfolio of smartphones and mobile computers, including the more expensive multimedia and enterprise-class devices. The team is also responsible for a suite of internet services under the Ovi brand, with a strong focus on maps and navigation, music, messaging and media. This unit is led by Anssi Vanjoki, along with Tero Ojanper (for Services) and Alberto Torres (for MeeGo Computers). The Nokia E90, a Symbian smartphone from Nokia's Eseries portfolio.

Mobile Phones
Mobile Phones is responsible for Nokia's portfolio of affordable mobile phones, as well as a range of services that people can access with them, headed by Mary T. McDowell. This unit provides the general public with mobile voice and data products across a range of devices, including high-volume, consumer oriented mobile phones. The devices are based on GSM/EDGE, 3G/W-CDMA and CDMA cellular technologies. In the first quarter of 2006 Nokia sold over 15 million MP3 capable mobile phones, which means that Nokia is not only the world's leading supplier of mobile phones and digital cameras (as most of Nokia's mobile telephones feature digital cameras, it is also believed that Nokia has recently overtaken Kodak in camera production making it the largest in the world), Nokia is now also the leading supplier of digital audio players (MP3 players), outpacing sales of devices such as the iPod from Apple. At the end of the year 2007, Nokia managed to sell almost 440 million mobile phones which accounted for 40% of all global mobile phones sales. By 2010, Nokia's market share in the mobile phone market had dropped to 32.6% (453 million phones).

Markets
Markets is responsible for Nokia's supply chains, sales channels, brand and marketing functions of the company, and is responsible for delivering mobile solutions and mobile phones to the market. The unit is headed by Niklas Savander.

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Subsidiaries
The Nokia 5800 XpressMusic, a touchscreen smartphone and portable entertainment device which emphasizes music and multimedia playback. Nokia has several subsidiaries, of which the two most significant as of 2009 are Nokia Siemens Networks and Navteq. Other notable subsidiaries include, but are not limited to Vertu, a British-based manufacturer and retailer of luxury mobile phones; Qt Software, a Norwegian-based software company, and OZ Communications, a consumer e-mail and instant messaging provider. Until 2008 Nokia was the major shareholder in Symbian Limited, a software development and licensing company that produced Symbian OS, a smartphone operating system used by Nokia and other manufacturers. In 2008 Nokia acquired Symbian Ltd and, along with a number of other companies, created the Symbian Foundation to distribute the Symbian platform royalty free and as open source.

Nokia Siemens Networks

Nokia Siemens Networks (previously Nokia Networks) provides wireless and fixed network infrastructure, communications and networks service platforms, as well as professional services to operators and service providers. Nokia Siemens Networks focuses in GSM, EDGE, 3G/WCDMA and WiMAX radio access networks; core networks with increasing IP and multiaccess capabilities; and services. On June 19, 2006 Nokia and Siemens AG announced the companies are to merge their mobile and fixed-line phone network equipment businesses to create one of the world's largest network firms, called Nokia Siemens Networks. The Nokia Siemens Networks brand identity was subsequently launched at the 3GSM World Congress in Barcelona in February 2007. As of March 2009, Nokia Siemens Networks serves more than 600 operator customers in more than 150 countries, with over 1.5 billion people connected through its networks.

Navteq

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Navteq is a Chicago, Illinois-based provider of digital map data and location-based content and services for automotive navigation systems, mobile navigation devices, Internet-based mapping applications, and government and business solutions. Navteq was acquired by Nokia on October 1, 2007. Navteqs map data is part of the Nokia Maps online service where users can download maps, use voice-guided navigation and other contextaware web services. Nokia Maps is part of the Ovi brand of Nokia's Internet based online services.

Corporate governance
The control and management of Nokia is divided among the shareholders at a general meeting and the Group Executive Board (left), under the direction of the Board of Directors (right). The Chairman and the rest of the Group Executive Board members are appointed by the Board of Directors. Only the Chairman of the Group Executive Board can belong to both, the Board of Directors and the Group Executive Board. The Board of Directors' committees consist of the Audit Committee, the Personnel Committee and the Corporate Governance and Nomination Committee. The operations of the company are managed within the framework set by the Finnish Companies Act, Nokia's Articles of Association and Corporate Governance Guidelines, and related Board of Directors adopted charters.

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Chapter 2

Financial Statement Analysis Ratios

Financial statement analysis (or financial analysis) refers to an assessment of the viability, stability and profitability of a business, sub-business or project. It is performed by professionals who prepare reports using ratios that make use of information taken from financial statements and other reports. These reports are usually presented to top management as one of their bases in making business decisions. Based on these reports, management may: Continue or discontinue its main operation or part of its business; Make or purchase certain materials in the manufacture of its product; Acquire or rent/lease certain machineries and equipment in the production of its goods; Issue stocks or negotiate for a bank loan to increase its working capital; Make decisions regarding investing or lending capital; Other decisions that allow management to make an informed selection on various alternatives in the conduct of its business.

Types of Ratios

Liquidity Ratios
Liquidity ratios provide information about a firm's ability to meet its short-term financial obligations. They are of particular interest to those extending short-term credit to the firm. Two frequently-used liquidity ratios are the current ratio (or working capital ratio) and the quick ratio. 1. Current Ratio: The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts over the next 12 months. It compares a firm's current assets to its current liabilities. It is expressed as follows:

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Current Ratio = Current Assets/Current Liabilities

Short-term creditors prefer a high current ratio since it reduces their risk. Shareholders may prefer a lower current ratio so that more of the firm's assets are working to grow the business. Typical values for the current ratio vary by firm and industry. For example, firms in cyclical industries may maintain a higher current ratio in order to remain solvent during downturns. One drawback of the current ratio is that inventory may include many items that are difficult to liquidate quickly and that have uncertain liquidation values. The quick ratio is an alternative measure of liquidity that does not include inventory in the current assets. The quick ratio is defined as follows:

2. Quick ratio In finance, the Acid-test or quick ratio or liquid ratio measures the ability of a company to use its near cash or quick assets to extinguish or retire its current liabilities immediately. Quick assets include those current assets that presumably can be quickly converted to cash at close to their book values. A company with a Quick Ratio of less than 1 cannot currently pay back its current liabilities. Quick Ratio or Acid test Ratio = Current Assets Inventory/Current Liabilities The current assets used in the quick ratio are cash, accounts receivable, and notes receivable. These assets essentially are current assets less inventory. The quick ratio often is referred to as the acid test. Finally, the cash ratio is the most conservative liquidity ratio. It excludes all current assets except the most liquid: cash and cash equivalents. The cash ratio is defined as follows: 3. Working capital: Working capital (abbreviated WC) is a financial metric which represents operating liquidity available to a business, organization, or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Net working capital is calculated as current assets minus current liabilities. It is a derivation of working capital that is commonly used in valuation techniques such as DCFs (Discounted cash flows). If current assets are less than current liabilities, an entity has a working capital deficiency, also called a working capital deficit.

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Working Capital = Current Assets Current Liabilities 4. Gross working capital: Gross working capital is the total cash, and cash equivalents, that a business has onhand. Cash equivalents may include inventory, accounts receivable, and investments, such as marketable securities, which may be liquidated within the calendar year. This may also be known as current assets or circulating capital. Gross working capital = Current assets

Financial leverage (debt) Ratios

In finance, leverage is a general term for any technique to multiply gains and losses. Common ways to attain leverage are borrowing money, buying fixed assets and using derivatives. Important examples are: A public corporation may leverage its equity by borrowing money. The more it borrows, the less equity capital it needs, so any profits or losses are shared among a smaller base and are proportionately larger as a result. A business entity can leverage its revenue by buying fixed assets. This will increase the proportion of fixed, as opposed to variable, costs, meaning that a change in revenue will result in a larger change in operating income. Hedge funds often leverage their assets by using derivatives. A fund might get any gains or losses on $20 million worth of crude oil by posting $1 million of cash as margin.

1. Debt-to-equity ratio: The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. Closely related to leveraging, the ratio is also known as Risk, Gearing or Leverage. The two components are often taken from the firm's balance sheet or statement of financial position (so-called book value), but the ratio may also be calculated using market values for both, if the company's debt and equity are publicly traded, or using a combination of book value for debt and market value for equity financially. Debt-to-equity ratio = total debts/total equity 2. Debt-to-total assets: Page | 17

Debt to total assets = total debts/total assets 3. Interest coverage ratio: Interest coverage ratio is a measure of a company's ability to honor its debt payments. It may be calculated as either EBIT or EBITDA divided by the total interest payable. Interest coverage ratio = Operating profit/interest Interest Coverage is a great tool when measuring a company's ability to meet its debt obligations. When the interest coverage ratio is smaller than 1, the company is not generating enough cash from its operations EBIT to meet its interest obligations. The Company would then have to either use cash on hand to make up the difference or borrow funds. Typically, it is a warning sign when interest coverage falls below 2.5x.

Activity Ratios
Activity ratios measure company sales per another asset accountthe most common asset accounts used are accounts receivable, inventory, and total assets. Activity ratios measure the efficiency of the company in using its resources. Since most companies invest heavily in accounts receivable or inventory, these accounts are used in the denominator of the most popular activity ratios. As an important aspect of the Accounts Receivable process, monitoring the rate of Accounts Receivable Turnover is crucial to the financial health of any business. Essentially, Accounts Receivable Turnover is the average amount of time that it takes a given client or group of clients to pay outstanding invoices after they are generated and mailed to the customer. 1. Accounts receivable turnover It is important to note that this number simply represents an average calculation for assessing accounts receivable turnover. Using average figures in business or financial ratios can distort the companys actual operational performance Accounts receivable turnover = total sale/ Accounts receivable 2. The average collection period: The average collection period is the number of days, on average, that it takes a company to collection its credit accounts or its accounts receivables. In other words, the average collection period of accounts receivable is the average number of days Page | 18

required to convert receivables into cash. The formula to calculate average collection period is the following: Account Receivable turnover in days = (Accounts Receivable/ Sales)*365 Days In order to calculate average collection period, the number for accounts receivable comes off the company's balance sheet. Sales comes off the income statement and is adjusted for credit sales. Sales is then divided by the number of days in a year to come up with average daily credit sales. The final result is a number of days, which is the average collection period. In order to interpret the average collection period, you have to have comparative data. If you compare the average collection period to past years and it is increasing, that means your accounts receivables aren't as liquid or aren't being converted to cash as quickly. If the average collection period is decreasing, the opposite is true. You also have to look at the company's credit policy. The average collection period should be compared with the firm's credit policy to see how well the firm is doing. If the average collection period, for example, is 45 days, but the firm's credit policy is to collect its receivables in 30 days, then the small business owner needs to fix the company's collection efforts. 3. Inventory turnover: A ratio showing how many times a company's inventory is sold and replaced over a certain period. It is calculated as follows: Inventory turnover = cost of goods sold/inventory 4. Inventory turnover in days: Inventory turnover in days = (inventory/cost of goods sold) *360 days 5. Total assets turnover or capital turnover: Sometimes referred to as an equity turnover or a working capital turnover, the capital turnover is the total amount of sales revenue divided by the average net capital achieved from the production effort. This essentially makes it possible to compare the usage of working capital with the amount of sales that are generated for a given period of time. From this perspective, the capital turnover can be viewed as an assessment of how effectively the business is using its resources to generate a profit. Total assets turnover or capital turnover = net sale/ total assets

Profitability Ratios
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Every firm is most concerned with its profitability. One of the most frequently used tools of financial ratio analysis is profitability ratios which are used to determine the company's bottom line. Profitability measures are important to company managers and owners alike. If a small business has outside investors who have put their own money into the company, the primary owner certainly has to show profitability to those equity investors. Profitability ratios show a company's overall efficiency and performance. We can divide profitability ratios into two types: margins and returns. Ratios that show margins represent the firm's ability to translate sales dollars into profits at various stages of measurement. Ratios that show returns represent the firm's ability to measure the overall efficiency of the firm in generating returns for its shareholders. 1. Net profit margin: Profit margin, net margin, net profit margin or net profit ratio all refer to a measure of profitability. It is calculated by finding the net profit as a percentage of the revenue. Net profit margin = net profit/ net sale The profit margin is mostly used for internal comparison. It is difficult to accurately compare the net profit ratio for different entities. Individual businesses' operating and financing arrangements vary so much that different entities are bound to have different levels of expenditure, so that comparison of one with another can have little meaning. A low profit margin indicates a low margin of safety: higher risk that a decline in sales will erase profits and result in a net loss, or a negative margin. Profit margin is an indicator of a company's pricing strategies and how well it controls costs. Differences in competitive strategy and product mix cause the profit margin to vary among different companies. 2. Gross profit margin: A measure calculated by dividing gross profit by net sales. Gross profit margin is an indication of a firm's ability to turn a dollar of sales into profit after the cost of goods sold has been accounted for. Also called gross margin, margin of profit. Gross profit margin = gross profit/net sale 3. Return on asset or earning power: The return on assets (ROA) percentage shows how profitable a company's assets are in generating revenue.

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Return on asset or earning power = net profit/total assets This number tells you what the company can do with what it has, i.e. how many dollars of earnings they derive from each dollar of assets they control. It's a useful number for comparing competing companies in the same industry. The number will vary widely across different industries. Return on assets gives an indication of the capital intensity of the company, which will depend on the industry; companies that require large initial investments will generally have lower return on assets. Return on assets is an indicator of how profitable a company is before leverage, and is compared with companies in the same industry. Since the figure for total assets of the company depends on the carrying value of the assets, some caution is required for companies whose carrying value may not correspond to the actual market value. Return on assets is a common figure used for comparing performance of financial institutions (such as banks), because the majority of their assets will have a carrying value that is close to their actual market value. Return on assets is not useful for comparisons between industries because of factors of scale and peculiar capital requirements (such as reserve requirements in the insurance and banking industries). 4. Return on equity: Return on equity (ROE) measures the rate of return on the ownership interest (shareholders' equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE shows how well a company uses investment funds to generate earnings growth. ROEs between 15% and 20% are considered desirable. Return on equity = net profit/total equity

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Chapter 3

Financial Statements Analysis Of Nokia Corporation

According to Balance Sheet and income Statements of Nokia Corporation we have the following financial statements analysis of ratios: For year 2007
Liquidity Ratios Current ratio = Current assets / Current liability = $29294 / $18976 = 1.54x Quick ratio = (Current assets Inventory) / Current liability = ($29294 $2876) / $18976 = 1.39x Working capital = Current assets Current liability = $29294 $18976 = $10318 Gross works capital = Current assets = $29294 Leverage ratios Debt to equity ratios = Total debt / Total equity = $1090 / $14773 = 0.073x Debt to total assets = Total debt / Total assets = $1090 / $37599 = 0.028x Activity ratios Account receivable turnover = Sale / Account receivable = $51058 / $11356 = 4.496x Account receivable turnover (in days) = Account receivable / Sale days = ($11356 / $51058) 365days = 81 days Inventory turnover = Cost of goods sold / Inventory = $33781 / $2876 = 11.74x Inventory turnover (in days) = Inventory / Cost of goods sold days = ($2876 / $33781) 365days = 31 days Total assets turnover or capital turnover = Net sale / Total assets = $51058 / $37599 = 1.35x Profitability ratios Net profit margin = Net profit / Net sale = $7205 / $51058 = 0.14111 = 14.11% Gross profit margin = Gross profit / Net sale = $17277 / $51058 = 0.3383 = 33.83% Page | 22

Return on assets = Net profit / Total assets = $7205 / $37599 = 0.1916 = 19.16% Return on equity = Net profit / Total equity = $7205 / $1477 = 0.4877 = 48.77%

For year 2008

Liquidity Ratios Current ratio = Current assets / Current liability = $24470 / $20355 = 1.20x Quick ratio = (Current assets Inventory) / Current liability = ($24470 $2533) / $20355 = 1.07x Working capital = Current assets Current liability = $24470 $20355 = $4115 Gross works capital = Current assets = $24470 Leverage ratios Debt to equity ratios = Total debt / Total equity = $4452 / $14208 = 0.31x Debt to total assets = Total debt / Total assets = $4452 / $39582 = 0.11x Activity ratios Account receivable turnover = Sale / Account receivable = $50710 / $9545 = 5.31x Account receivable turnover (in days) = (Account receivable / Sale) days = ($9545 / $50710) 365 = 68 days Inventory turnover = Cost of goods sold / Inventory = $33337 /$2533 = 13.16x Inventory turnover (in days) = (Inventory / Cost of goods sold) days = ($2533 / $33337) 365 = 27.73x Total assets turnover or capital turnover = Net sale / Total assets = $50710 / $39582 = 1.281x Profitability ratios Net profit margin = Net profit / Net sale = $3988 / $50710 = 0.0786 = 7.86% Gross profit margin = Gross profit / Net sale

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= $17373 / $50710 = 0.3425 = 34.25% Return on assets = Net profit / Total assets = $3988 / $39582 = 0.1007 = 10.07% Return on equity = Net profit / Total equity =$3988 / $14208 = 0.2806 = 28.06%

For year 2009

Liquidity Ratios Current ratio = Current assets / Current liability = $23613 / $15188 = 1.55x Quick ratio = (Current assets Inventory) / Current liability = ($23613 $1865) / $15188 = 1.43x Working capital = Current assets Current liability = $23613 $15188 = $8425 Gross works capital = Current assets = $23613 Leverage ratios Debt to equity ratios = Total debt / Total equity = $5203 / $13088 = 0.39x Debt to total assets = Total debt / Total assets = $5203 / $35738 = 0.14x Activity ratios Account receivable turnover = Sale / Account receivable = $40984 / $7995 = 5.12x Account receivable turnover (in days) = (Account receivable / Sale) days = ($7995 / $40984) 365days = 71 days Inventory turnover = Cost of goods sold / Inventory = $27720 / $1865 = 14.86x Inventory turnover (in days) = (Inventory / Cost of goods sold) days = ($1865 / $27720) 365days = 24 days Total assets turnover or capital turnover = Net sale / Total assets = $40984 / $35738 = 1.14x Profitability ratios Net profit margin = Net profit / Net sale

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= $891 / $40984 = 0.0217 = 2.17% Gross profit margin = Gross profit / Net sale = $13264 / $40984 = 0.3236 = 32.36% Return on assets = Net profit / Total assets = $891 / $35738 = 0.0249 = 2.49% Return on equity = Net profit / Total equity = $891 / $13088 = 0.0680 = 6.80%

For year 2010

Liquidity Ratios Current ratio = Current assets / Current liability = $27145 / $17540 = 1.54x Quick ratio = (Current assets Inventory) / Current liability = ($27145 $2523) / $17540 = 1.40x Working capital = Current assets Current liability = $27145 $17540 = $9605

Leverage ratios Debt to equity ratios = Total debt / Total equity = $5279 / $14384 = 0.367x Debt to total assets = Total debt / Total assets = $5279 / $39123 = 0.134x

Activity ratios Account receivable turnover = Sale / Account receivable = $42446 / $7609 = 5.578x Account receivable turnover (in days) = (Account receivable / Sale) days = ($7609 / $42446) 365days = 65 days Inventory turnover = Cost of goods sold / Inventory = $29629 / $2523 = 11.74x Inventory turnover (in days) = (Inventory / Cost of goods sold) days = ($2523 / $29629) 365days = 31 days Total assets turnover or capital turnover = Net sale / Total assets = $42446 / $39123 = 1.084x Page | 25

Profitability ratios Net profit margin = Net profit / Net sale = $1850 / $42446 = 0.043 = 4.35% Gross profit margin = Gross profit / Net sale = $12817 / $42446 = 0.3019 = 30.19% Return on assets = Net profit / Total assets = $1850 / $39123 = 0.0472 = 4.72% Return on equity = Net profit / Total equity =$1850 / $14384 = 0.1286 = 12.86%

Liquidity Ratios:
1. Current Ratio: Years Current Ratio 2007 1.54x 2008 1.2x 2009 1.55x 2010 1.54x

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Ratio

Description

The company

Current ratio

Current ratio = Current assets / Current liability

Nokia Corp.'s current ratio deteriorated from 2007 to 2008 but then improved from 2008 to 2010.

2. Quick Ratio: Years Quick Ratio 2007 1.39x 2008 1.07x 2009 1.43x 2010 1.4x

Ratio

Description

The company

Quick Ratio

Quick ratio = (Current assets Inventory) / Current liability

Nokia quick ratio from year 2007 to 2008 went down and then from year 2008 t0 2010 flourished very nicely.

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3. Working Capital: Years Working Capital 2007 $103 18 2008 $4115 2009 $8425 2010 $9605

Ratio

Description

The company

Working Capital

Working capital = Current assets Nokia working capital from year 2007 to 2008 went down and then Current liability flourished nicely form 2008 to 2010.

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4. Gross working capital: Years Gross working capital 2007 $29294 2008 $24470 2009 $23613 2010 $27145

Ratio

Description

The company

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Gross working capital

Gross works capital = Current assets

Nokia gross working capital from year 2007 to 2009 went down and then from 2009 to 2010 flourished nicely.

Leverage Ratios:
1. Debt to equity Ratio Years Debt to equity ratio 2007 0.073x 2008 0.31x 2009 0.39x 2010 0.36x

Ratio

Description

The company

Debt to equity Ratio

Debt to equity ratios = Total debt / Nokia debt to equity ratio was not

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Total equity

nice in 2007 but from 2007 to 2009 Improved and then in 2010 fall down.

2. Debt to total assets Years Debt to total assets 2007 0.028x 2008 0.11x 2009 0.14x 2010 0.13x

Ratio

Description

The company

Debt to total assets

Debt to total assets = Total debt / Total assets

Nokia debt to total assets were down in 2007 but from 2007 to 2009 it went up and then went down in

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2010.

Activity ratios:
1. Account receivable turnover Years Account receiva ble turnove r 2007 4.49x 2008 5.31x 2009 5.12x 2010 5.57x

Ratio

Description

The company

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Account receivable turnover

Account receivable turnover = Sale /Nokia account receivable turnover Account receivable was down in 2007 and then went up from 2007 to 2008 and then went down from 2008 t0 2009 and then again went up from 2009 to 2010.

2. Account receivable turnover (in days) Years Account receivabl e turnover (days) 2007 81 2008 68 2009 71 2010 65

Ratio

Description

The company

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Account receivable turnover (in days)

Account receivable turnover (in Nokia account receivable turnover days) = (Account receivable / Sale) (in days) went down from 2007 to days 2008 and then went up from 2008 to 2009 and then went down from 2009 to 2010.

3. Inventory turnover Years Inventory turnover 2007 11.74x 2008 13.16x 2009 14.86x 2010 11.74x

Ratio

Description

The company

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Inventory turnover

Inventory turnover = Cost of goods Nokia inventory turnover went up sold / Inventory from 2007 to 2009 and then went down from 2009 to 2010.

4. Inventory turnover (in days) Years Inventory turnover in days 2007 31 2008 27 2009 24 2010 31

Ratio

Description

The company

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Inventory turnover (in days)

Inventory turnover (in days) = (Inventory / Cost of goods sold) days

Nokia inventory turnover (in days) went down from year 2007 to 2009 and then went up from 2009 to 2010.

5. Total assets turnover or capital turnover Years Total assets turnover 2007 1.35x 2008 1.28x 2009 1.14x 2010 1.08x

Ratio

Description

The company

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Total assets turnover or capital turnover

. Total assets turnover or capital turnover = Net sale / Total assets

Nokia total assets turnover went down from 2007 to 2010.

Profitability ratios
1. Net profit margin Years Net profit margin 2007 14.11% 2008 7.86% 2009 2.17% 2010 4.35%

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Ratio

Description

The company

Net profit margin

Net profit margin = Net profit / Net Nokia net profit margin went down sale from year 2007 to 2009 and then went up from 2009 to 2010.

2. Gross profit margin Years Gross profit margin 2007 33.83% 2008 34.25% 2009 32.36% 2010 30.19%

Ratio

Description

The company

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Gross profit margin

Gross profit margin = Gross profit / Nokia gross profit margin went up Net sale from year 2007 to 2008 and then went down from year 2008 to 2010.

3. Return on assets Years Return on assets 2007 19.16% 2008 10.07% 2009 2.49% 2010 4.72%

Ratio

Description

The company

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Return on assets

Return on assets = Net profit / Total Nokia return on assets went down assets from year 2007 to 2009 and then went up from 2009 to 2010.

4. Return on equity Years Return on equity 2007 48.77% 2008 28.06% 2009 6.80% 2010 12.86%

Ratio

Description

The company

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Return on equity

Return on equity = Net profit / Total Nokia return on equity went down equity from year 2007 to 2009 and then went up from year 2009 to 2010.

Chapter 4

Conclusion and Recommendations

Conclusion:
The financial statements analysis is applied by every type of companies. The Nokia Corporation is one of the largest sellers of telecommunication technologies. So the ratio analysis is the most important step to know best about the company financial position. As in every business there will be loss and profit. If an organization runs in loss it can be removed by launching new products, innovative technologies and some other factors. So by the help of financial statement analysis a company can find its overall performance. Financial statement analysis (or financial analysis) refers to an assessment of the viability, stability and profitability of a business, sub-business or project.

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Recommendations:
It is high time that Nokia starts applying some sense to its strategies to improve the financial position and performance of their company. The Nokia can become first richest company in the world if they focus more on their financial statements and analysis of the resources used by their company. Now also the Nokia is selling its best quality products and services. But they must go on changing their strategies with the time and innovation technologies to make their company performance best.

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Annexure:

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Balance Sheet: Income statement:

In Millions of EUR (except for per share 12 months ending 12 months ending 12 months ending 12 months ending items) 2010-12-31 2009-12-31 2008-12-31 2007-12-31 In Millions of EUR (except for per share items) As of 2010-12-31 As of 2009-12-31 As of 2008-12-31 As of 2007-12-31 Revenue 42,446.00 40,984.00 50,710.00 51,058.00 Other Revenue, Total - 2,125.00 Cash & Equivalents 1,951.00 1,142.00 1,706.00 Total Revenue 42,446.00 40,984.00 50,710.00 51,058.00 Short Term Investments 10,324.00 27,720.00 7,731.00 5,114.00 9,628.00 Cost of Revenue, Total 29,629.00 33,337.00 33,781.00 Gross Profit Term Investments 12,817.00 Cash and Short Selling/General/Admin. Expenses, Total 4,992.00 Accounts Receivable - Trade, Net Research & Development 5,863.00 Depreciation/Amortization Receivables - Other Interest Expense(Income) - Net Operating Total Receivables, Net Unusual Expense (Income) 0.00 Total Operating OtherInventory Expenses, Total -108.00 Total Operating Expense 40,376.00 Prepaid Expenses Operating Income 2,070.00 Other Current Assets, Total Interest Income(Expense), Net NonOperating Total Current Assets Gain (Loss) on Sale of Assets Property/Plant/Equipment, Total - Gross Other, Net -285.00 Income Before Tax 1,786.00 Accumulated Depreciation, Total Income After Tax 1,343.00 Goodwill, Net Minority Interest 507.00 Equity In Affiliates Intangibles, Net Net Income Before Extra. Items 1,850.00 Long Term Investments Accounting Change Other Long Term Assets, Discontinued Operations Total Extraordinary Item Total Assets Net Income 1,850.00 Accounts Payable Preferred Dividends Income Available to Common Excl. 1,850.00 Accrued Expenses Extra Items Notes Payable/Short Term Debt Incl. Extra 1,850.00 Income Available to Common Items Port. of LT Debt/Capital Leases Current Basic Weighted Average Shares Other EPS Excluding Total Basic Current liabilities,Extraordinary Items Current Liabilities Total Basic EPS Including Extraordinary Long Term Debt Items Dilution Lease Obligations Capital Adjustment Diluted Weighted Average Shares 3,713.25 Total Long Term DebtExtraordinary Items 0.50 Diluted EPS Excluding Diluted EPS Including Extraordinary Total Debt Items Deferred Income Tax Dividends per Share - Common Stock 0.40 Primary Issue Minority Interest Gross Dividends - Common Stock Other Liabilities, Total Net Income after Stock Based Comp. Total Liabilities Expense Basic EPS after Stock Based Comp. Redeemable Preferred Stock, Total Expense Preferred Stock - Stock Based Comp. Diluted EPS after Non Redeemable, Net Expense Stock, Total Common Depreciation, Supplemental Additional Paid-In Capital Total Special Items Normalized Income Before Taxes Retained Earnings (Accumulated Deficit) Effect of Special Items on Income Taxes Treasury StockEx. Impact of Special Items Income Taxes - Common Normalized Income After Taxes Other Equity, Total Normalized Income Avail to Common Total Equity Basic Normalized EPS Diluted Normalized Shareholders' Equity 0.50 Total Liabilities & EPS Shares Outs - Common Stock Primary Issue Total Common Shares Outstanding 12,275.00 13,264.00 8,873.00 4,562.00 7,570.00 7,981.00 5,345.00 935.00 7,609.00 7,995.00 1,197.00 2,523.00 28.00 1,865.00 4,360.00 39,787.00 4,551.00 1,197.00 378.00 329.00 -11.00 27,145.00 962.00 260.00 5,723.00 631.00 1,968.00 891.00 669.00 1,600.00 39,123.00 891.00 6,101.00 7,365.00 891.00 921.00 116.00 891.00 23,613.00 5,447.00 -3,580.00 5,171.00 2,905.00 623.00 1,513.00 35,738.00 4,950.00 5,958.00 727.00 44.00 3,509.00 15,188.00 4,432.00 17,373.00 6,820.00 5,160.00 9,444.00 5,418.00 694.00 9,545.00 953.00 182.00 2,533.00 45,744.00 4,538.00 4,966.00 -14.00 1,034.00 24,470.00 5,652.00 4,970.00 -3,562.00 3,889.00 6,257.00 99.00 4,157.00 3,988.00 608.00 1,973.00 39,582.00 3,988.00 5,225.00 3,988.00 6,491.00 3,578.00 3,988.00 13.00 5,048.00 20,355.00 861.00 17,277.00 11,753.00 5,544.00 11,200.00 5,609.00 - 11,356.00 -1,940.00 2,876.00 79.00 43,073.00 3,070.00 7,985.00 239.00 19.00 29,294.00 - 5,267.00 8,268.00 -3,355.00 6,746.00 1,384.00 459.00 - 2,736.00 7,205.00 666.00 - 1,597.00 - 37,599.00 7,205.00 - 7,074.00 7,205.00 6,611.00 714.00 7,205.00 173.00 - 4,404.00 18,976.00 203.00

3,037.00 17,540.00 4,242.00

0.00 3,721.07 4,242.00 0.24 4,432.00 5,279.00 5,203.00 1,022.00 1,847.00 88.00 24,739.00 246.00 312.00 0.40 1,303.00 1,661.00 66.00 22,650.00 246.00 279.00 13,371.00 -681.00 -127.00 13,088.00 35,738.00 3,744.96

0.00 3,780.36 1.05 861.00 4,452.00 0.40 1.37 1,787.00 2,302.00 69.00 25,374.00 246.00 442.00 15,060.00 -1,881.00 341.00 14,208.00 39,582.00 3,697.87

0.00 3,932.01 203.00 1.83 - 1,090.00 963.00 0.53 2,565.00 119.00 22,826.00 - 246.00 - 644.00 - 17,192.00 - -3,146.00 - -163.00 14,773.00 1.44 37,599.00 3,845.95

13,664.00 -663.00 825.00 14,384.00 39,123.00 0.48 3,744.96

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