There's good news and bad news for Nokia at the company's earning call for the first quarter of 2013. As it stands, Windows Phone sales continue to grow; however, overall revenue is still in decline.

Nokia reported first quarter sales of €5.85 billion, that's a 20 percent decline year over year, and a €272 million net loss, which is smaller than the €928 million net loss a year ago. This shows that Nokia's strategy is working somewhat, as net loss is declining sharply, if this continues down this road, then the company could be profitable again in the second quarter.

During the first quarter, Nokia sold 61.9 million phones: 6.1 million of which were smartphones, which includes 5.6 million Lumia devices. A year ago, the company managed to sell 82.7 million phones: 11.9 million of which were smartphones, 2 million of which were Lumia handsets.

The increase in sales Nokia has experienced in the first quarter is good for the company. With the release of the Lumia 520 and the Lumia 720, there's a possibility sales could yet again improve in the second quarter. However, with the coming of the Galaxy S4 and the HTC One, hitting that milestone might prove to be difficult.

Statement from Nokia boss, Stephen Elop:

"At the highest level, we are pleased that Nokia Group achieved underlying operating profitability for the third quarter in a row. While operating in a highly competitive environment, Nokia is executing our strategy with urgency and managing our costs very well.

We have areas where we are making progress, and areas where we are further increasing the focus. For example, people are responding positively to the Lumia portfolio, and our volumes are increasing quarter over quarter. Nokia Siemens Networks delivered another strong quarter and contributed to an overall improvement in Nokia Group's cash position. On the other hand, our Mobile Phones business faces a difficult competitive environment, and we are taking tactical actions and bringing new innovation to market to address our challenges.

All of these efforts are aimed at improving our financial performance and delivering more value to our shareholders."

Nokia needs that rumored EOS to keep up with rivals now more than ever.