Nokia posted some very disturbing quarterly results on Thursday morning. The Finnish mobile giant seems to be in a flat spin and CEO Stephen Elop is conceding that the situation is anything but rosy.

Nokia’s operating profit is down 44 percent since Q1 and sales of mobile devices are down 23 percent sequentially. Sales of mobile phones and smartphones are down, along with average selling prices.

Elop described the results as “clearly disappointing” and went on to say that competitive pressures are continuing. He tried to paint a somewhat more positive outlook for the rest of the year, thanks to Nokia’s clear strategy and several major product launches.

Elop is clearly betting on Windows Phone 7 to turn things around towards the end of the year. Still, there is no denying Nokia is facing its most serious crisis since the days of making gas masks and army boots for the Finnish military.