Wireless equipment maker Ericsson has reported sales of SEK58.3bn, down 13% compared to SEK67bn in the same period last year. Net sales in the quarter showed an increase of 2% sequentially with further momentum in China.
Net sales in the quarter decreased 16% year-over-year for comparable units, and decreased 20% adjusted for currency exchange rate effects and hedging.
The gross margin remained flat year-over-year, and decreased slightly sequentially to 35%. Operating income, excluding joint ventures and restructuring charges, amounted to SEK7.5bn in the quarter, including positive contribution from the acquired Nortel business.
For the quarter ended December 31, 2009, the company posted a net income of SEK700m, down 82% compared to SEK4.1bn in the same period a year ago.
During the quarter, network sales declined 16% year-over-year, while professional services sales increased 2% compared to the same period a year-ago. Adjusted cash flow amounted to SEK13.6bn, compared to SEK7.9bn in the same period last year, up sequentially from SEK6.9bn.
For the full year 2009, the company posted net sales of SEK206.5bn, a decrease of 1%, compared to net sales of SEK208.9bn. Operating expenses amounted to SEK52.9bn, also positively affected by the ongoing cost reduction activities. For the full year, net income was SEK4.1bn and earnings per share were SEK1.14.
Hans Vestberg, president and CEO of Ericsson, said: “During the second half of 2009, Networks’ sales were impacted by reduced operator spending in a number of markets. Group sales for the full year were less affected and the operating margin increased slightly.
“We maintained market shares well in all segments, cash flow was good and our financial position is strong. The services business performed well, and our joint ventures remain on track to return to profit.”
