|
|
Topic
Top news source/blog that we're missing
Why do you recommend this news source?
|
||
Headquartered in Stockholm, Sweden, LM Ericsson Telephone Company (NASDAQ : ERIC) is a multinational company engaged in manufacturing and selling wireless infrastructure equipment for the telecom sector. Founded in 1876, 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.
[edit] Business Segments
Ericsson reports the following business segments
Business segment Networks includes products for mobile and fixed broadband access, core networks, transmission and next-generation IP-networks. Related network rollout services are also included. In addition, the power modules and cables operations are included within Networks, as well as the acquired operations of Redback and Entrisphere.
Business segment Professional Services includes all service operations, excluding Network rollout reported under Networks. Services for system integration of IP and core networks previously reported as network rollout are now reclassified as Professional Services. Sales of managed services as a part of the total Professional Services will be disclosed since this represents service revenues of a recurring nature.
Business segment Multimedia includes multimedia systems enterprise solutions and mobile platforms. The operations of Tandberg TV, Drutt, LHS and Mobeon will also be included in Multimedia.
Phones Segment is a 50 percent share in earnings of the JV with Sony Corporation.
Wireless Chip Business includes all the assets from its Ericsson Mobile Platforms (EMP) division and ST-NXP Wireless JV.
ST Micro had previously bought NXP's chip business with NXP owning 20% of that JV. Ericsson then contributed $1.1bn to the joint venture, with around $700m of that going to ST so that it can buy out the remaining 20 per cent it didn't own of the NXP Wireless business. This new company is now called ST-Ericsson. It is a fabless semiconductor company. ST-Ericsson will utilize the wafer-processing capabilities of ST Micro. ST-Ericsson is a supplier to four of the top five handset manufacturers (Nokia, Samsung, Sony Ericsson, and LG), had combined pro-forma revenues of about $3.6 billion in 2008, and has a solid cash position of $400 million.
[edit] Revenues by Geography
In the first nine months of 2007, Ericsson derived 28% of its revenues from Western Europe 26% from Eastern Europe, the Middle East and Africa 30% from the Asia Pacific 7% from North America and 9% from Latin America.
[edit] Revenues by Products
Revenue by product category for the first nine months of 2007 was: Networks (68.7%), Professional Services (23.1%) and Multimedia (8.2%).
[edit] Recent Acquisitions
At the end of January, 2007 Ericsson closed the acquisition of Redback Networks for $1.9 billion. Redback is a pioneer in intelligent routing solutions, and has a strong position in multi-service edge routing technology, which will mesh well with Ericsson's IMS, Optical transport and broadband access solutions.
In June 2007, Ericsson announced a voluntary public cash offer to acquire LHS AG for approximately 310 million ($418 million). The company acquired 84% of the shares of LHS AG in September 2007.
Also in June 2007, Ericsson acquired 100 percent of the shares of Drutt Corporation, a leading provider of Service Delivery Platform (SDP) solutions.
[edit] References
| ||||||
|
|
