Mobile maker Nokia has announced another loss, as it fights to stay in a smartphone market dominated by Apple's iPhone and Samsung's Galaxy models.
The company has managed, however, to cling on to more of its cash reserves in the second quarter than the market had feared, giving its battered shares an 18% boost.
The shares had fallen around 80% since February 2011 when the company announced its shift to the largely untried Microsoft Windows phone operating system.
Sales of its new Lumia phones, which run the Microsoft software, doubled from a low base in the previous quarter, but have yet to grab share back from Apple and Samsung Electronics in the most profitable part of the mobile market.
Nokia reported a second-quarter net loss of €1.53 billion, or eight euro cents a share when adjusted for one-off items, compared with the market's average forecast for a loss of nine euro cents a share.
It held net cash of €4.2 billion, compared with the market estimate of €3.7 billion, but still down from €4.9 billion at the end of the first quarter.
Details showed that advance royalty payments of €400m accounted for most of the lower fall in its cash position.
Nokia sold 4 million Windows phones in the second quarter, still only a fraction of Apple's expected sales of 30 million iPhones or Samsung's 50 million smartphones.
Nokia forecast its third-quarter loss in the phone business would be just as steep as the second at minus 9.1%, an outlook that was worse than analysts had expected.
In the three months to June, all three major credit ratings agencies have cut Nokia bonds to "junk", while the company warned twice on profits and said it planned to cut one in five jobs.
