New CEO Börje Ekholm says Ericsson must become more profitable if it is to flourish in the long run but admits he is still formulating his strategic vision.
Ericsson's misfortunes continued on Thursday as the company reported another sharp fall in quarterly sales and swung to a $180 million net loss, blaming weak demand for mobile broadband products and a fall in licensing revenues for the latest setback.
Net sales in the October-to-December quarter dropped 11%, to 65.2 billion Swedish kronor ($7.4 billion), compared with the year-earlier quarter, and would have fallen 15% without favorable currency movements. For all its ongoing restructuring efforts, Ericsson AB (Nasdaq: ERIC) reported a net loss of SEK1.6 billion ($180 million) compared with a profit of SEK7 billion ($790 million) for the same period a year ago.
Q4 2016 | Q4 2015 | YoY change | |
Revenues | 65.2 | 73.6 | -11% |