SECOND QUARTER HIGHLIGHTS
•Sales in the quarter were
Sales for comparable units, adjusted for currency, recovered compared to the previous quarter and were down by -1% year-over-year. Operating margin improved year-over-year, mainly driven by stronger performance in segment Networks.
Sales in the quarter year-over-year were driven by growth in the
The operating margin improved year-over-year, especially in segment Networks. This was due to a higher gross margin primarily from improved business mix with an increased share of mobile broadband capacity projects in advanced LTE markets, as well as higher recurring IPR revenues and efficiency improvements.
After a slow start of the year, we are executing on previously awarded 4G/LTE contracts in Mainland China and
Political unrest prevails in parts of the
As previously stated and with current visibility, key contracts awarded will gradually impact sales and business mix in the second half of the year.
In line with our strategic agenda, we have continued investing into new and targeted areas. The addition of the modems and Mediaroom businesses, as well as increased investments in IP, have resulted in increased R&D spending. At the same time, we continue to execute on profit improvement activities.
Our modems business will start generating sales by the end of this year, as our modem M7450 will be featured in smartphones and data devices. During the first half of 2014, we have invested
Support Solutions showed negative result in the quarter due to lower sales related to legacy portfolio. However, the transition from traditional telecom software license business models to recurrent license revenue deals continues.
Operating cash flow was positive in the quarter driven mainly by improved income and maintained working capital days. The execution of the company-wide order-to-cash initiative continues and shows good progress.
In a transforming ICT market, we continue to evolve through investments in both our core business as well as in new and targeted areas. Through our technology and services leadership we are well positioned to continue to be a strategic partner to our customers as they move to capture new market opportunities.
You find the complete report with tables in the attached PDF or by following this link:
www.ericsson.com/res/investors/docs/q-reports/2014/06month14-en.pdf or go to: www.ericsson.com/investors
Live webcast of the briefing and conference call details, 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/press
FOR FURTHER INFORMATION, PLEASE CONTACT
Phone: +46 10 719 34 72
Phone: +46 10 714 64 49
Åsa Konnbjer, Director, Investor Relations
Phone: +46 10 713 39 28
Stefan Jelvin, Director, Investor Relations
Phone: +46 10 714 20 39
Rikard Tunedal, Director, Investor Relations
Phone: +46 10 714 54 00
Phone: +46 10 719 97 27
Phone: +46 10 719 69 92
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