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Euronews: Ericsson, Nokia Shine Brighter in Q3

It's a third-quarter bunfight today, as Ericsson AB (Nasdaq: ERIC), Nokia Corp. (NYSE: NOK), Colt Technology Services Group Ltd and others give their books an airing, while ARM Ltd. is feeling chipper about its new, er, chip.

  • Ericsson had what can only be described as an impressive third quarter, reporting revenues of 55.5 billion Swedish kronor (US$8.4 billion), up 17 percent compared with a year ago, and net income of SEK 3.8 billion ($573 million), up 6 percent. The chief concern for the Swedish giant is that its current mix of business (a lot of new network builds) is putting pressure on its margins. And its joint ventures aren't helping much either... (See Ericsson Sets the Pace in Q3 and Euronews: Sony Ericsson Breaks Even.)

  • ST-Ericsson , the Swedish vendor's mobile chip joint venture, is still making a loss, but less of a loss than it did this time last year. Its third-quarter scoresheet showed it in the red to the tune of US$211 million, compared with a net loss of $221 million for third quarter 2010. ST-Ericsson is in a battle to cut costs, and announced major job losses in June. (See ST-Ericsson Reports Q3 and Euronews: ST-Ericsson Cuts, Huawei Eyes a Buy.)

  • Nokia gave itself some breathing space with better than expected third-quarter results. Its sales are down 13 percent from a year ago at €8.98 billion ($12.4 billion) and it reported a small operating loss, so there are no champagne corks popping at Nokia HQ. However, it sold more basic phones and smartphones than expected and is predicting a better than anticipated fourth quarter. Investors took the news well, sending Nokia's share price up more than 11 percent to €4.99 on the Helsinki exchange. (See Nokia Reports Q3.)

  • ARM, the chip designer based in Cambridge, U.K., is saying it has produced its most energy-efficient application processor EVER in the shape of the Cortex-A7, which is one fifth the size of the existing Cortex-A8 processor. The company claims that the wonderchip will make for a "rich user experience in sub-$100 entry level smartphones." (See ARM Unveils Energy-Saving Chip and Apple Gives ARM a Leg Up.)

  • It's steady as she goes at Colt, the pan-European services provicer, with its third-quarter financials showing revenue up 0.6 percent year-on-year to €395 million ($542 million) and EBITDA (earnings before interest, tax, depreciation and amortization) also up 0.6 percent at €84.3 million. (See Colt Reports Q3 and Ethernet Europe: COLT's Service Wrap.)

  • Neelie Kroes, the European Commission 's vice president for the Digital Agenda, used a speech on Wednesday to urge the European Parliament and the EU's Council of Ministers to pull their collective finger out and get on with approving the proposed €9.2 billion "Connecting Europe Facility" über-plan to bolster the member states' digital infrastructures. It's a "matter of urgency," stressed the Steely One. (See EC Proposes €9B for Broadband, Steely Neelie's FTTX Face Off and EC Updates on Broadband Initiative.)

  • Mobistar SA , Belgium's second-largest mobile operator, saw its third-quarter results hit by a fall in termination rates and roaming tariffs. EBITDA was down 4.1 percent year-on-year to €400.9 million ($553.6 million). (See Mobistar Reports Q3, Brussels Sprouts LTE Auction Plans and Mobistar Replaces Nortel With Huawei.)

    — Paul Rainford, Assistant Editor, Europe, Light Reading

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