Nokia said it will not be able to meet its full-year sales, operating margin and free cash flow expectations for 2023 as license renewals for its technology unit have not yet been completed. The Finnish telecoms company said it had expected to reach a deal by the end of the year, but it may now take until 2024 to complete the deal.
"Despite intense negotiations between the parties involved and court rulings in Nokia's favor around the world, the company will prioritize protecting the value of its patent portfolio over a specific timeline for achieving a resolution," Nokia said in a statement on Friday.
It is understood that Nokia lost a key contract in the United States earlier this month and said its 5G network business will face challenges in the next two years, and subsequently lowered its long-term profit target.
The company said it will announce fourth-quarter and full-year results on January 25 next year. Nokia said the preliminary outlook for 2024 it provided when it lowered its long-term profit guidance on December 12 "remains unchanged."