Finland’s Nokia took a tumble on Thursday after poorer-than-expected quarterly profits sent shares down by as much as 12%. at one point.

Nokia said its main telecom network equipment business suffered from lower software sales, the need to compete for low-margin deals in China and higher research and development costs.

It repeated its belief its ongoing takeover of Alcatel-Lucent would help improve the situation and allow it to scale up and take on main rivals Ericsson and Huawei.

Nokia no longer makes phones themselves, having sold out last year to Microsoft.