Network sales down 14% on year ago quarter
Wireless equipment maker Ericsson has reported sales of SEK45.1bn, down 9% compared to SEK49.6bn in the same period last year. Net sales in the quarter showed a decrease of 23% sequentially.
Sales for comparable units, adjusted for currency exchange rate effects and hedging, declined 16% year-over-year.
Gross margin increased 3% year-over-year to 39%, and increased 4% sequentially from 35%. Operating income, excluding joint ventures and restructuring charges, amounted to SEK4.5bn in the quarter.
For the quarter ended March 31, 2010, the company posted a net income of SEK1.3bn, down 30% compared to SEK1.8bn in the same period a year ago.
During the quarter, network sales declined 14% year-over-year, while professional services sales increased 4% compared to the same period a year-ago.
Hans Vestberg, president and CEO of Ericsson, said: “During the quarter, the mobile data traffic increase continued, mainly in North America and Western Europe, driven by increased consumer usage of smartphones and other devices. We forecast that mobile data traffic will double annually over the next five years. In markets with strong data traffic uptake, we increasingly discuss with operators how to manage the higher data volumes and how to maintain a good consumer user experience.
“We also continued to strengthen our position in North America with the important 4G/LTE agreement with AT&T. With a clear roadmap for CDMA, customers show confidence in our broadened offering. The acquired CDMA business developed favorably during the quarter”