LM Ericsson Telephone Company (ERIC)

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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.

[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

Company Website