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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Reason To Recover? Find Out Here
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.
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