Nokia's latests financial results are in, and they don't make for very pleasant reading. An operating loss of £424 million has been declared, with a net loss of £323 million.

This time last year Nokia posted a £257 million profit and was the number one smartphone producer in the word - a title it has now lost to Apple.

Total shipments of Nokia smartphones declined to 16.7 million units, a drop of 34 per cent. Apple meanwhile, shifted 20.3m iPhones in its second quarter.

Nokia CEO Stephen Elop hinted that Windows Phone 7 could be Nokia's great saviour but admitted that the issues the Finnish company now faces have "manifested in a greater than expected way".

"We are making better-than-expected progress towards our strategic goals," he said. "Those who already have viewed our early Windows Phone work are very optimistic about the devices Nokia will bring to market."

Earlier this year Pocket-lint reported how Nokia had slashed 4,000 people from its payroll, and offloaded a further 3,000.

We've seen the first Nokia WP7 device leaked a couple of times now. But whether the Sea Ray and its buddies have the power to save the ailing company remains to be seen.