Welcome!

Microsoft Cloud Authors: Pat Romanski, Srinivasan Sundara Rajan, Glenn Rossman, Janakiram MSV, Steven Mandel

News Feed Item

Ericsson fourth quarter and full year 2012 report

STOCKHOLM, SWEDEN -- (Marketwire) -- 01/31/13 --


Fourth quarter highlights

* Sales increased 5% YoY and 23% QoQ. Segment Networks sales increased 6% YoY driven mainly by North America. QoQ Networks sales grew 31%, primarily due to normal higher year-end business activity

* Operating margin excl. JVs improved to 7.1% (6.4%) YoY mainly driven by increased Networks sales, offset by continued efficiency measures generating restructuring charges with a negative impact on operating margin of close to -3%-points (-1%)

* Net income SEK -6.3 (1.5) b. negatively impacted by a non-cash charge related to ST-Ericsson of SEK -8.0 b. as previously communicated and a reduction of deferred tax assets of SEK -0.5 b. related to lowered corporate tax rate in Sweden

* EPS diluted SEK -1.99 (0.36). EPS Non-IFRS and excluding ST-Ericsson charge SEK 1.07 (0.81)

* Cash flow from operations increased to SEK 15.7 b. driven by reduced working capital.

Full year highlights

* Sales were flat YoY with growth in Global Services and Support Solutions, while Networks sales declined partly due to the 40% decline of CDMA equipment sales

* Operating margin, excluding JVs, was flat at 9.7% (9.6%). Excluding the gain related to the divestment of Sony Ericsson operating margin was 6.4%

* Net income SEK 5.9 (12.6) b. impacted positively by the Sony Ericsson gain of SEK 7.7 b. and negatively by the ST-Ericsson charge of SEK -8.0 b.

* EPS diluted SEK 1.78 (3.77). EPS Non-IFRS SEK 3.55 (5.54)

* Cash flow from operations SEK 22.0 b. Full year cash conversion of 116%, above the target >70%

* Dividend for 2012, proposed by board of Directors of SEK 2.75 (2.50) per share.

---------------------------------------------------------------------------
                                                     Full       Full   Full
                       Q4    Q4    YoY    Q3    QoQ  year       year   year
 SEK b.             2012   2011 Change  2012 Change  2012       2011 Change
---------------------------------------------------------------------------
 Net sales           66.9  63.7     5%  54.6    23% 227.8      226.9     0%
---------------------------------------------------------------------------
 Of which Networks   35.3  33.3     6%  26.9    31% 117.3      132.4   -11%
---------------------------------------------------------------------------
 Of which Global                                                        16%
 Services            28.0  27.0     4%  24.3    15%  97.0       83.9
---------------------------------------------------------------------------
 Of which Support                                                       26%
 Solutions            3.6   3.4     6%   3.3     9%  13.5       10.6
---------------------------------------------------------------------------
 Gross margin       31.1% 30.2%      - 30.4%      - 31.6%      35.1%      -
---------------------------------------------------------------------------
 EBITA margin excl
 JVs and Sony
 Ericsson sale       8.8%  8.1%      -  8.7%      -  8.4%      11.6%      -
---------------------------------------------------------------------------
 Operating income
 Excl JVs and Sony
 Ericsson sale       4.8   4.1    17%   3.7    30%  14.5       21.7   -33%
---------------------------------------------------------------------------
 Operating margin
 Excl JVs and Sony
 Ericsson sale       7.1%  6.4%      -  6.7%      -  6.4%       9.6%      -
---------------------------------------------------------------------------
 EBITA margin excl
 JVs                 8.8%  8.1%      -  8.7%      - 11.7%      11.6%      -
---------------------------------------------------------------------------
 Operating income
 excl                                                                    2%
 JVs                  4.8   4.1    17%   3.7    30%  22.2       21.7
---------------------------------------------------------------------------
 Operating margin
 excl                                                                     -
 JVs                 7.1%  6.4%      -  6.7%      -  9.7%       9.6%
---------------------------------------------------------------------------
 Of which Networks     8%    8%      -    5%      -    6%        13%      -
---------------------------------------------------------------------------
 Of which Global                                                          -
 Services              6%    6%      -    8%      -    6%         7%
---------------------------------------------------------------------------
 Of which Support                                                         -
 Solutions             8%    0%      -   14%      -    9%        -5%
---------------------------------------------------------------------------
 Operating income
 incl JVs            -3.8   2.2      -   3.1      -  10.5       17.9
---------------------------------------------------------------------------
 Of which
 ST-Ericsson         -8.5  -0.8      -  -0.6      - -11.7       -2.7      -
---------------------------------------------------------------------------
 Income after
 Financial items     -3.9   1.8      -   3.2      -  10.2       18.1
---------------------------------------------------------------------------
 Net income          -6.3   1.5      -   2.2      -   5.9       12.6
---------------------------------------------------------------------------
 EPS diluted, SEK   -1.99  0.36      -  0.67      -  1.78       3.77   -53%
---------------------------------------------------------------------------
 EPS (Non-IFRS),                                                       -36%
 SEK(1))            -1.40  0.81      -  1.04      -  3.55       5.54
---------------------------------------------------------------------------
 Cash flow from                                                        121%
 operations          15.7   5.5   187%   7.0   125%  22.0       10.0
---------------------------------------------------------------------------
 Cash conversion     227%   79%      -  149%      -  116%        40%      -
---------------------------------------------------------------------------
 Net cash, end of                                                       -2%
 period              38.5  39.5    -2%  29.0    33%  38.5       39.5
---------------------------------------------------------------------------
 (1))  EPS, diluted, excl. amortizations, write-downs of acquired
 intangible assets, restructuring
 Twelve months 2012 includes a gain from the divestment of Sony Ericsson
 of SEK 7.7 b.
---------------------------------------------------------------------------

Comments from Hans Vestberg, President and CEO

"Our segments showed mixed developments during the year with strong growth in Global Services and Support Solutions, while Networks had a more challenging year. Support Solutions went from losses in 2011 into profitability and together with Global Services represented close to 50% of Group sales in 2012, compared to 42% in 2011," says Hans Vestberg, President and CEO of Ericsson (NASDAQ: ERIC).

"During the year profitability was negatively impacted by operating losses in ST-Ericsson, the ongoing network modernization projects in Europe as well as the underlying business mix, with a higher share of coverage projects than capacity projects. With present visibility of customer demand, and with the current global economic development, underlying business mix is expected to gradually shift towards more capacity projects during the second half of 2013.

We ended the year with strong cash flow and a full-year cash conversion well above target. The Board of Directors proposes a dividend for 2012 of SEK 2.75 (2.50) per share, an increase by 10%.

Throughout 2012 North America was our strongest market, driven by continued mobile broadband investments and demand for services. However, regions such as South East Asia and Oceania and Sub-Saharan Africa gradually improved during the year.

In the fourth quarter Networks sales recovered, despite continued expected decline in CDMA. Profitability in Networks improved sequentially due to higher sales and a higher share of software sales. Sales and profitability for Global Services and Support Solutions remained stable.

The quarter was negatively impacted by a non-cash charge related to ST-Ericsson. Following the announcement of STMicroelectronics' intention to exit as a shareholder, Ericsson will explore various strategic options for ST-Ericsson assets. We believe that the modem technology, which we originally contributed to the JV, has a strategic value to the wireless industry.

The work to leverage our strength in the growth areas mobile broadband, managed services and operations and business support systems (OSS/BSS) has continued during the year, with both selective acquisitions and divestments. In addition, we completed the divestment of Sony Ericsson and introduced a new strategy for Support Solutions. Improving profitability, reducing costs and working capital remain high on the agenda also for 2013. While the macroeconomic and political uncertainty continues in certain regions the long-term fundamentals in the industry remain attractive and we are well positioned to continue to support our customers in a transforming ICT market," concludes Vestberg.

You find the complete report with tables in the attached PDF or by following this link: www.ericsson.com/res/investors/docs/q-reports/2012/12month12-en.pdf

Editor's note

To read the complete report with tables, please go to:

www.ericsson.com/thecompany/investors/financial-reports/interim-reports/Q4-report-2012

Ericsson invites media, investors and analysts to a press conference at the Ericsson Studio, Grönlandsgången 4, Stockholm, at 09.00 (CET), January 31, 2013. An analysts, investors and media conference call will begin at 14.00 (CET).

Live webcast of the press conference and conference call as well as supporting slides will be available at www.ericsson.com/press and www.ericsson.com/investors

Video material will be published during the day on www.ericsson.com/broadcast_room

Ericsson discloses the information provided herein pursuant to the Securities Markets Act. The information was submitted for publication at 07.30 CET, on January 31, 2013.

Ericsson fourth quarter and full year 2012:

http://hugin.info/1061/R/1674425/545208.pdf

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Ericsson via Thomson Reuters ONE

[HUG#1674425]

For further information, please contact

Helena Norrman
Senior Vice President, Communications
Phone: +46 10 719 3472
E-mail: Email Contact
or Email Contact

Investors

Asa Konnbjer
Director, Investor Relations
Phone: +46 10 713 3928
+46 730 825 928
E-mail: Email Contact

Stefan Jelvin
Director, Investor Relations
Phone: +46 10 714 2039
+46 709 860 227
E-mail: Email Contact

Rikard Tunedal
Director, Investor Relations
Phone: +46 10 714 5400
+46 761 005 400
E-mail: Email Contact

Media

Ola Rembe
Vice President
Head of Corporate Communications & PR
Phone: +46 10 719 9727
+46 730 244 873
E-mail: Email Contact

Corporate Communications & PR
Phone: +46 10 719 69 92
E-mail: Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
Businesses are struggling to manage the information flow and interactions between all of these new devices and things jumping on their network, and the apps and IT systems they control. The data businesses gather is only helpful if they can do something with it. In his session at @ThingsExpo, Chris Witeck, Principal Technology Strategist at Citrix, will discuss how different the impact of IoT will be for large businesses, expanding how IoT will allow large organizations to make their legacy ap...
Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of companies worldwide-from publishers and broadcasters, to enterprises, marketing agencies and household-name brands. Building on its established design leadership, Adobe enables customers not o...
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to connect your brand strategy with the right consumer. 24Notion ranked #12 on Corporate Social Responsibility - Book of List.
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, will discuss key challenges and solutions to powering a ride sharing and/or multimodal model in the a...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...