Feeds

Ericsson suffers as customers delay network investment

Says GPRS and 3G will give it a boost

  • alert
  • submit to reddit

Next gen security for virtualised datacentres

Ericsson has reported a Q2 loss - but that's what the market expected.

Pre-tax losses in the period ending 30 June were SKr5.3 billion ($498 million). It had enjoyed profits of SKr6.7 billion ($629.55 million) a year earlier.

Customers holding back on expanding their networks are mainly to blame. Ericsson's mobile network systems unit saw margins slashed to one per cent, where they'd been 21 per cent a year earlier. But CEO Kurt Hellstrom said 50 operators had launched GPRS already and thought this would stimulate the market later this year.

"Regardless of how the Mobile Internet market develops in the short term, it is only a matter of time before additional network capacity is required to support the continuing subscriber growth and increasing voice traffic," he said.

The company said the development of the 3G market remains on track for volume business from 2003.

But the handset business is in the toilet and that unit lost SKr4.6 billion ($432.2 million). Ericsson has now cut its worldwide annual sales estimates for handsets down to 400-440 million, from a previous forecast of 430-480 million. Inventory build up with distributors is blamed.

Revenues fell three per cent to SKr62.8 billion ($5.9 billion) for the quarter. Ericsson also took a SKr15 billion ($1.41 billion) restructuring charge in the period. ®

Next gen security for virtualised datacentres

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.