QUOTE AND NEWS
Motley Fool  Jul 18  Comment 
The S&P 500 roars higher following strong tech earnings reports as NQ Mobile, Skyworks Solutions, and Ericsson explode higher.
SeekingAlpha  Jul 18  Comment 
LM Ericsson Telephone Company (NASDAQ:ERIC) Q2 2014 Earnings Conference Call July 18, 2014 08:00 AM ET Executives Peter Nyquist – Head of Investor Relations Hans Vestberg – Chief Executive Officer Jan Frykhammar – Chief...
Motley Fool  Jul 18  Comment 
Ericsson crushed European analyst targets in the second quarter, while Wall Street projections hit closer to the mark. Either way, the stock is soaring this morning.
Bloomberg  Jul 18  Comment 
The Hindu Business Line  Jul 18  Comment 
Global telecom gear maker Ericsson registered sales growth of about 35 per cent in India at Rs 1,489 crore (Swedish Krona 1.6 billion) in the second quarter ended June 30, 2014.“Sales (in I...
Benzinga  Jul 18  Comment 
Gentiva Health Services (NASDAQ: GTIV) shares surged 11.51% to $17.25 in pre-market trading after the company's board rejected Kindred's bid. The company announced the receipt of alternative proposal at $17.25 per share in cash. InterCloud...
Wall Street Journal  Jul 18  Comment 
The Swedish mobile network giant said it continues to expect higher sales in the second half of this year, as its financial results in the second quarter overshot expectations.
The Economic Times  Jul 13  Comment 
The telecom gear maker estimates that India's mobile broadband user base is expected to grow four times by 2020 to reach 500 million subscribers.
Forbes  Jul 11  Comment 
Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative...
Cellular News  Jul 9  Comment 
South Korea based SK Telecom says that it has signed a MOU with Ericsson for joint research for 5G-related technologies. Click here for more.
Cellular News  Jul 9  Comment 
Ericsson is expanding its Global Network Operations Center in India by opening a fourth site in Kolkata, complementing the existing sites in Noida, Gurgaon and Bangalore. Click here for more.




 

LM Ericsson Telephone Company (NASDAQ: ERIC) is a multinational company engaged in manufacturing and selling wireless infrastructure equipment for the telecom sector. Ericsson is a leading provider of communications networks, related services and handset technology platforms. It is a total network solutions provider, serving wireless and wireline operators, enterprises, and consumers. The company is primarily a supplier of global system for mobile communications (GSM) based equipment, and looks to benefit to the next generation systems as more broadband content is being streamed to mobile devices, prompting network providers to upgrade their networks. GSM is the dominant wireless standard in Europe and most of the world. Sony Ericsson, the company's 50/50 mobile handset joint venture with Sony, is one of the top-five largest manufacturers of cell phones in the world.

Company Overview

Ericsson is a supplier of equipment, integrated solutions, multimedia applications and services to operators worldwide. The Company is a provider of communications networks, related services and multimedia solutions. Through its joint ventures ST-Ericsson and Sony Ericsson, it also provides handsets. It offers a portfolio of telecommunication and data communication systems, multimedia solutions and professional services, covering a range of technologies.[1]

In 2009, Ericsson reported sales of SEK 206.5 billion and operating income of SEK 24.6 billion.

Business and Financial Metrics

Second Quarter 2010 Results[2]

During the second quarter of 2010, Ericsson reported sales declined 8% year-over-year to 48 billion SEK. Sales in Global Services were flat due to decline in network rollout although Professional Services increased 5%. Group sales increased sequentially by 6%. Operators showed a continued strong demand for mobile broadband driven by smartphone and laptop usage. However, sales were impacted by continued industry component shortages and supply chain bottlenecks. Gross margin improved year-over-year and sequentially due to business mix and efficiency gains. Cash flow declined year-over-year, mainly due to increased working capital. Sony Ericsson continued to show improved results and ST-Ericsson's transition program is on track.

Net income improved year-over-year and sequentially to 2 billion SEK, positively impacted by improved earnings in Sony Ericsson.

Ericsson's sales by geography in 2009
Ericsson's sales by geography in 2009[3]

Business Segments

The Company operates in five segments: Networks, Professional Services, Multimedia, Sony Ericsson and ST-Ericsson.

Networks[1]

The Company’s Networks segment delivers products and solutions for mobile and fixed broadband access, core networks and transmission, as well as related network rollout services. Its offering includes radio access solutions interconnect with devices, such as mobile phones, notebooks and personal computers (PCs), supporting mobile technologies, such as global system for mobile communications (GSM) and wideband code division multiple access (WCDMA) on the same platform; fixed access solutions; Ericsson’s core network solutions include softswitches, Internet protocol (IP) infrastructure for enhanced data GSM environment (EDGE) and core routing, IP multimedia subsystem (IMS) and media gateways; transmission/backhaul; micro wave and optical transmission solutions for mobile and fixed networks; related network rollout services; network management tools, and supporting operator activities for management of existing networks, as well as for introduction of new network architectures, technologies and services.

Professional Services[1]

The Company’s Professional Services delivers managed services, systems integration, consulting, education and general customer support services. Its offering includes managed services, systems integration, consulting, education and customer support services. Its managed services consist of network operations and hosting of service layer platforms and applications. Ericsson integrates equipment from multiple suppliers and handles technology change programs, as well as design and integration of new solutions.

Multimedia[1]

The Company’s Multimedia segment provides enablers and applications enabling operators to deliver an experience seamlessly on any device, any time and anywhere. The offerings include television solutions, which consists of end-to-end solutions for operators, service providers, advertisers and content providers; customer and business applications includes multimedia solutions for the consumer and enterprise markets; multimedia brokering solutions, which facilitate payment and distribution of content, and service delivering and provisioning platforms, which enables operators and service providers to create, sell and manage multimedia offerings and multi-play offerings.

Sony Ericsson[1]

The Company’s Sony Ericsson segment consists of the joint venture Sony Ericsson Mobile Communications. Sony Ericsson delivers mobile phones and accessories.

ST-Ericsson[1]

ST-Ericsson segment consists of the joint venture ST-Ericsson. ST-Ericsson designs, develops and creates mobile platforms and wireless semiconductors. On February 2, 2009, ST-Ericsson was formed by merging ST-NXP Wireless and Ericsson Mobile Platforms.

Ericsson's Acquisitions[1]

On June 17, 2009, the Company purchased Elcoteq SE’s manufacturing operations in Tallinn, Estonia. During the year ended December 31, 2009, the Company acquired Nortel’s code division multiple access (CDMA) and long-term evolution (LTE) operations in North America. In February 2010, the Company acquired the remaining interest in LHS AG. In April 2010, Telefonaktiebolaget LM Ericsson acquired Nortel Networks' North American global system for mobile communications (GSM) business. In June 2010, Nortel Networks Ltd. sold its 50% interest in LG-Nortel Co. Ltd., the Company's Korean joint venture with LG Electronics Inc., to Telefonaktiebolaget LM Ericsson.

Trends and Forces

The economic slowdown has harmed the entire telecom industry

Due to the economic slowdown, the market for GSM/WCDMA network equipment and related services is estimated to have declined by more than 10%.[3] Ericsson’s sales for comparable units were down 9%, adjusted for currency and hedging effects.[3] A decline in Networks in line with the market was partly offset by an increase in Professional Services, driven by strong growth in managed services.[3] Reported Multimedia sales increased by 5% for comparable units.[3]

4G technology provides a growth opportunity for Ericsson

Ericsson is the only supplier selected to participate in all major 4G/LTE projects.[3] Ericsson provides managed services to network operators which together serve 370 million subscribers. North America is set to become Ericsson’s largest and fastest growing market as major telecom operators adopt 4G technology. Ericsson's presence in North America has been elevated as its Chief Technology Officer has been relocated to Silicon Valley.

Competition

Ericsson competes with Alcatel-Lucent (ALU), Huawei, Nokia (NOK)/Siemens, Cisco Systems (CSCO), ZTE, Juniper Networks (JNPR), Accenture (ACN), HP/EDS, International Business Machines (IBM), Tata Consultancy Services (BOM:532540), Tech Mahindra (BOM:532755), Acision, Amdocs (DOX), Comverse Technology Inc (CMVT), Harmonic (HLIT), Oracle (ORCL), Thomson (EPA:TMS), Nokia (NOK), Motorola (MOT), Samsung Electronics (SEO:005930), LG, Nec Electronics (BER:NEN), Sharp Corporation (SHCAY), Apple (AAPL), High Tech Computer (TPE:2498) (HTC), Research in Motion (RIMM), Google (GOOG) and Microsoft (MSFT).

References

  1. Company Website
  2. ST Ericsson
  3. Sony Ericsson
  4. Nortel Acquisition Press Release
  1. 1.0 1.1 1.2 1.3 1.4 1.5 1.6 Reuters: Ericsson Company Profile
  2. "Ericsson second quarter results" July 23, 2010
  3. 3.0 3.1 3.2 3.3 3.4 3.5 Ericsson 2009 Annual Report



Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki