Mobile equipment maker Nokia Corporation (ADR)(NYSE:NOK) Siemens Networks is in negotiations to sell its business support systems unit, its chief executive Rajeev Suri said on Tuesday.
The company is no planning to junk some product lines and focus on mobile broadband. It is selling non-core units and laying off about a quarter of its staff.
"I would say overall we have about six divestments that already took place," Suri told reporters. "They're either not core to our mobile broadband or we see that the profitability is not where we want it to be."
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The company has sold off its network equipment for wired networks and exited the market for WiMax, a wireless technology that has failed to win as much support among carriers as Long Term Evolution (LTE).
Suri said that the company was ahead of schedule with its restructuring plans, after which it planned to raise its headcount in India as it scales p its offshore services.
The restructuring is yielding benefits as Nokia Siemens has generated positive cash flows for three straight quarters.
Shares of NOK soared 6.30% to $2.80.
Meanwhile here's something to watch out for. Facebook Inc(NASDAQ:FB)’s Mark Zuckerberg will appear in public for the first time since its IPO in May, to make a speech at the TechCrunch conference in San Francisco.
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The world's youngest billionaire is expected to address the company's plans to grow, its strategy for expanding into the all-important mobile space and, perhaps most importantly for investors, how to reverse the stock's decline since the IPO, Market Watch said.
Shares of FB rose 3% to $19.37.