& cplSiteName &

Ericsson Posts Q4, Full Year

Light Reading
News Wire Feed
Light Reading
1/30/2014
50%
50%

STOCKHOLM, Sweden --

Fourth quarter highlights

  • Sales of SEK 67.0 b., flat YoY.
  • Sales for comparable units and adjusted for FX, increased 4% YoY.
  • Operating income incl. JV of SEK 9.1 (-3.8) b. with operating margin of 13.5% (-5.7%), including a one-time charge of SEK -0.4 b. related to the acquisition of Airvana
  • Net income SEK 6.4 (-6.3) b.
  • Successfully closed an IPR cross license agreement with Samsung on FRAND terms. Impact on net sales of SEK 4.2 b., on operating income of SEK 4.2 b. and on net income of SEK 3.3 b. included in all numbers.
  • EPS diluted SEK 1.97 (-1.99). EPS Non-IFRS SEK 2.42 (-1.40).
  • Cash flow from operating activities of SEK 14.6 (15.7) b. -- Segment Modems was consolidated as of October 1, 2013

    Full year highlights

  • Sales of SEK 227.4 b., flat YoY.
  • Sales for comparable units and adjusted for FX, up 5% YoY.
  • Operating income incl. JV was SEK 17.8 (10.5) b. with an operating margin of 7.8% (4.6%).
  • Net income SEK 12.2 (5.9) b.
  • All numbers include effects of the IPR cross license agreement with Samsung with impact on net sales of SEK 4.2 b., on operating income of SEK 4.2 b. and on net income of SEK 3.3 b.
  • EPS diluted SEK 3.69 (1.78). EPS Non-IFRS SEK 5.62 (3.55).
  • Cash flow from operating activities of SEK 17.4 (22.0) b.
  • Proposed dividend for 2013 of SEK 3.00 (2.75) per share.

    The business mix, with a higher share of coverage projects than capacity projects, started to shift towards more capacity during the year. As anticipated, sales came under some pressure during the quarter. As previously communicated, the major reason behind this development is the two large mobile broadband coverage projects, which peaked in North America in the first half of 2013 and the impact from reduced activity in Japan.

    While executing on the large rollout projects in the US, we have also strengthened our professional services position and capabilities. For the full year Global Services accounted for the majority of the region's sales and we are today the market leader in both telecom services and mobile infrastructure in one of the world's most advanced and dynamic ICT markets.

    The LTE tenders in China continue and so far the two major operators that have made their vendor selections have chosen Ericsson. During the quarter, sales in China improved as a result of deliveries to the ongoing mobile broadband coverage projects.

    In the fourth quarter Ericsson continued to grow in some of its European key markets. During the last years we have strengthened our position in Europe through the network modernization projects. These projects have been delivered according to plan and the major part of the negative margin impact from these projects is now behind us. Over time, we expect the telecom industry in Europe to improve driven by macroeconomic development and a recent investment announcement made by one of the large operators.

    During 2013 Ericsson executed on a number of strategic initiatives to both manage the ongoing technology transition in the industry and to transform the company for future business opportunities. We have solidified our core business as well as taken important steps to build a leadership position in new and targeted key areas. This includes consolidating the modems business and the acquisition of the IPTV business Mediaroom from Microsoft. We will gradually increase resource and capital allocation in these areas as well as in IP, Cloud, OSS and BSS.

    The long-term fundamentals in the industry remain attractive and with our ongoing strategic initiatives we are well positioned to continue to support our customers in a transforming ICT market.

    Ericsson AB (Nasdaq: ERIC)

    (0)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
    NEXT COURSE
    Friday, September 30, 1:00PM EDT
    Gigabit & the Great Migration
    Robert Howald, Vice President, Network Architecture, Comcast
    UPCOMING COURSE SCHEDULE
    Wednesday, October 5, 1:00PM EDT
    Gigabit & Smart Cities
    Joe Kochan, COO & Co-Founder, US Ignite
    Friday, October 7, 1:00PM EDT
    Gigabit & DOCSIS 3.1
    Ty Pearman, Director, Access Architecture, Comcast
    Wednesday, October 19, 1:00PM EDT
    Securing a Virtual World
    Rita Marty, Executive Director, Mobility and Cloud Security, Chief Security Office, AT&T
    in association with:
    From The Founder
    Light Reading today starts a new voyage as part of a larger Enterprise.
    Flash Poll
    Live Streaming Video
    Charting the CSP's Future
    Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
    LRTV Interviews
    CenturyLink: SDN/NFV Pose New Interconnection Possibilities

    9|28|16   |   04:37   |   (0) comments


    Network operators should develop new APIs and business processes for reselling virtual assets to each other, says CenturyLink's Bill Walker. That will enable them to build digital business portfolios that help them avoid becoming commodity transport providers.
    LRTV Interviews
    Level 3: Overcoming Terror of Being Supplier, Integrator & Developer

    9|28|16   |     |   (0) comments


    At Light Reading's NFV & Carrier SDN event in Denver, Travis Ewert of Level 3 Communications said there is terror in becoming supplier, integrator and developer, but it can be overcome and be cost effective.
    LRTV Custom TV
    Introducing IoT World News

    9|27|16   |   01:43   |   (0) comments


    Self-driving cars, medical sensors, smart cities... and refrigerators. In order to address the huge scope of IoT, KNect365 has created a unique online community that will help businesses to understand and monetize the opportunities that live within the IoT market. We look forward to welcoming you to IoT World News -- your gateway to a better connected future.
    LRTV Interviews
    AT&T: Re-usable Functions Next NFV Key

    9|27|16   |   06:03   |   (0) comments


    The next generation of NFV has to break functions down into re-usable software chunks, making everything much more cloud-like.
    LRTV Interviews
    Masergy on Security: Attackers Gaining Upper Hand

    9|27|16   |   5:10   |   (2) comments


    At Light Reading's NFV & Carrier SDN event in Denver, Ray Watson, vice president of Global Technology at Masergy, says that because of the growth in virtualization, the threat landscape is shifting in favor of the attackers. As a result, service providers need to think beyond just defending the perimeter and take a more holistic approach to security.
    LRTV Interviews
    Verizon Takes Next Step on Biz Virtualization Journey

    9|26|16   |   4:38   |   (2) comments


    At September's NFV & Carrier SDN event in Denver, Light Reading sat down with Victoria Lonker, director of Product and New Business Innovation at Verizon, to chat about where the carrier is with delivering virtualized services to business customers.
    LRTV Interviews
    Global Services: The $40B Face-Off

    9|26|16   |   05:53   |   (1) comment


    More service providers than ever before are battling it out to win a slice of what is now a $40 billion global communications services pie, explains Ovum Principal Analyst David Molony.
    LRTV Documentaries
    MEC Congress: The Key Takeaways

    9|22|16   |   03:25   |   (3) comments


    Three key takeaways from the Mobile Edge Computing (MEC) Congress in Munich, Germany.
    Wagner’s Ring
    Time to Shut Up About 'Dumb Pipes'

    9|22|16   |     |   (12) comments


    Service providers can't compete with OTT players. It just isn't in their DNA. Instead, service providers need to embrace what they're good at -- providing reliable, secure connectivity.
    Wagner’s Ring
    Keeping Your Tech Career Going After 50

    9|21|16   |     |   (13) comments


    How do you keep your career moving forward when you're past the half-century mark?
    LRTV Interviews
    Peering Into the Digital Future

    9|20|16   |   04:25   |   (0) comments


    Nick Thomas, practice leader of digital media at Ovum, talks about how digital transformation in the technology, media and telecom sectors will enable the development of a new range of applications and services for enterprises and consumers and how the upcoming Digital Futures event in London will examine ...
    LRTV Custom TV
    Napatech Tackles NFV's Major Challenge

    9|7|16   |   08:42   |   (0) comments


    One of the main challenges for network operators introducing NFV is to combine performance and flexibility in a cost-effective way, but there is a solution, explains Napatech's Dan Joe Barry.
    Upcoming Live Events
    November 3, 2016, The Montcalm Marble Arch, London
    November 30, 2016, The Westin Times Square, New York City
    December 1, 2016, The Westin Times Square, New York, NY
    December 6-8, 2016, The Westin Excelsior, Rome
    May 16-17, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    Hot Topics
    Time to Shut Up About 'Dumb Pipes'
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 9/22/2016
    Verizon CFO: Eat Our (Fixed) 5G Dust!
    Dan Jones, Mobile Editor, 9/22/2016
    WiCipedia: The Women Helping Women Edition
    Eryn Leavens, Special Features & Copy Editor, 9/23/2016
    Eurobites: Telefónica Taps Juniper for Network Security
    Paul Rainford, Assistant Editor, Europe, 9/26/2016
    Open Source Getting on My Nerves
    Carol Wilson, Editor-at-large, 9/26/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
    Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
    Animals with Phones
    There's Nothing Like Missing a Full Minute of Pokémon Go Click Here
    Live Digital Audio

    A vital part of increasing the number of women in comms is transforming the ways companies can support and empower women. While progressive company policies that support both men and women in achieving work-life balance are a step in the right direction, creating a company culture that supports those policies can at times be more challenging.

    During this show, we'll talk to Lynn Comp, Senior Director of Industry and Sales Enabling (ISE) in the Network Platforms Group at Intel, about why those challenges exist and how companies can overcome them. She'll provide insight into how Intel has worked to create a culture that supports work-life balance, and provide steps and guidance for other companies wishing to do the same. We will also leave plenty of time to get your questions answered live on the air.