Light Reading
Sales flat year-on-year at Swedish equipment giant.

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
    Educational Resources
    sponsor supplied content
    Educational Resources Archive
    Flash Poll
    From The Founder
    It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
    LRTV Huawei Video Resource Center
    Huawei Highlights at BBWF 2014

    11|20|14   |   3:40   |   (0) comments


    Broadband World Forum is one of the world's largest telecoms, media and technology events with over 7,800 senior executives from across the globe converging on Amsterdam every year to identify the Next Big Thing. BBWF is an exciting place to meet the entire industry under one roof and identify the latest in network innovation, service optimization and customer ...
    LRTV Huawei Video Resource Center
    How Will BCMS Stimulate Margin for Broadband Operators?

    11|19|14   |   6:52   |   (0) comments


    In BBWF 2014, Liu Shuqing emphasizes the value of FMC 2.0 based full service experience by throwing light on the BCMS solution. The underlying principle of this innovative technique is to create network robustness and driving network from connection oriented to ACE – BAND oriented infrastructure, in which applications, cloud, and user experiences will be an asset ...
    LRTV Huawei Video Resource Center
    SingleFAN3.0: Better Connected Experience

    11|19|14   |   3:06   |   (0) comments


    At the BBWF 2014, David Hu, the VP of Huawei Access Network Product Line, talked about the future of access networks – SingleFAN3.0: faster broadband, wider coverage, and smarter connection.
    LRTV Interviews
    Basil Alwan Interview: The Road to Cloud

    11|19|14   |   09:09   |   (0) comments


    Alcatel-Lucent's head of IP and Transport talks about the migration towards a web-like networking environment, the impact of the cloud, SDN and NFV, and the yet-to-be-announced FP4 chip.
    LRTV Documentaries
    FairPoint Makes a Fair Point About Analytics

    11|19|14   |   1:56   |   (1) comment


    The US-based communication service provider gets to grips with advanced analytics, tackling data and breaking down the silos within its own business.
    LRTV Documentaries
    Analytics Lets C Spire Get to Know Subs

    11|19|14   |   3:01   |   (2) comments


    It's all about the data for US operator C Spire as it uses analytics to personalize its customer service down to individual subscribers.
    LRTV Interviews
    Nuage Branches Out With SDN: CEO Interview

    11|17|14   |   9:32   |   (0) comments


    Sunil Khandekar, CEO of Alcatel-Lucent's SDN-focused unit Nuage Networks, talks about the opportunities and challenges of breaking out of the data center into wide-area networks.
    Light Reedy
    Telecom Analytics Grows Up

    11|14|14   |   1:15   |   (4) comments


    The big data analytics debate has moved on from a year ago, with some experts suggesting it's no longer a technology challenge.
    LRTV Huawei Video Resource Center
    Huawei Compass

    11|14|14   |   3:17   |   (1) comment


    At OpenStack Summit 2014, Shuo Yang, Huawei Principal Cloud Infrastructure Architect introduced Huawei Compass, the software tool for solving customers' problems on the journey of OpenStack Cloud.
    LRTV Huawei Video Resource Center
    Huawei's Cloud Strategy in European Region

    11|14|14   |   2:56   |   (1) comment


    At OpenStack Summit 2014, Dr. Gotz, CTO of Huawei IT in European Region introduced Huawei's cloud strategy in European region.
    LRTV Huawei Video Resource Center
    Huawei's Contribution on OpenStack

    11|14|14   |   5:58   |   (0) comments


    At OpenStack Summit 2014, Dennis Gu, Huawei Chief Architect of Cloud Computing introduced the relationship between OpenStack and cloud computing, and Huawei's contribution on OpenStack.
    LRTV Huawei Video Resource Center
    Caroline Chappell on Open Cloud Trends

    11|14|14   |   2:00   |   (0) comments


    At OpenStack Summit 2014, Caroline Chappell from Heavy Reading shared her perspective of open cloud trends. She believes it's really important to all work as a community and establish stable core to OpenStack.
    Upcoming Live Events
    December 2, 2014, New York City
    December 3, 2014, New York City
    December 9-10, 2014, Reykjavik, Iceland
    February 10, 2015, Atlanta, GA
    April 14, 2015, New York City, NY
    May 6, 2015, McCormick Convention Center, Chicago, IL
    May 30, 2015, The Westin Peachtree, Atlanta, GA
    June 9-10, 2015, Chicago, IL
    Infographics
    WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
    Hot Topics
    Bell Labs Chief Slams 'Toy' Networks
    Robert Clark, 11/19/2014
    'Job Security' Biggest SDN Security Challenge
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/14/2014
    Subsea Market Lures New Cast of Characters
    Dan O'Shea, Managing Editor, 11/14/2014
    Pics: Verizon's Chicago Destination Store
    Sarah Reedy, Senior Editor, 11/19/2014
    Like Us on Facebook
    Twitter Feed