The company's cash reserves fell to 4.2 billion euros. The situation has improved since the first quarter, but is still worse than the same period in 2011.

It said it sold 4 million Lumia phones with Microsoft's  Windows software, in line with the market's forecast. Nokia CEO Stephen Elop said that the company still expects Lumia to turn the company's fortunes around, despite Microsoft's decision not to make Windows Phone 8 compatible with existing Windows Phone products.

"We plan to provide updates to current Lumia products over time, well beyond the launch of Windows Phone 8," Elop was quoted as saying by a Nokia statement. "We believe the Windows Phone 8 launch will be an important catalyst for Lumia."

Turnover was 7.5 billion euros, better than anticipated. In the last quarter Nokia sold 10.2 million were smartphones.

Smartphone sales decreased by 39 percent compared to the same period last year.

Market reaction has so far been positive, in part because expectations ahead of the results were so low, as Nokia shares rose ten percent percent in Helsinki on the results.