Ericsson revenue grew 1%, net income plunges by 63 percent

Telecom Lead Europe: Swedish wireless equipment maker
Ericsson has posted revenues of SEK 55.3 billion for the second quarter of
2012, up 1 percent, as compared to SEK 54.8 for the same quarter a year

Net income declined 64 percent to SEK 1.11 billion ($158
million), down 63 percent, as compared to SEK 3.11 billion a year earlier.

Networks sales stood at SEK 27.8 billion, decreased 17
percent, as compared to SEK 33.4 billion, due to the expected decline in CDMA
equipment sales as well as weaker sales in China and Russia.

Global services support revenue accounted at SEK 24.1
billion, up 26 percent, against SEK 19 billion for the same quarter a year ago.

Under Global services segment, Professional Services
fetched revenue of SEK 16.9 billion, up 26 percent, against SEK 13.5 billion a
year earlier. Managed services accounted for SEK 6.5 billion revenue with 37
percent increase Y-o-Y. The company’s network rollout segment also grew 28
percent at SEK 7.1 billion for the second quarter of 2012.

On the other hand, Support solutions fetched revenue of
SEK 3.5 billion for Q2 FY12, up 47 percent, as compared to SEK 2.4 billion a
year earlier.

The official release read that the acquired Telcordia
operation added sales of SEK 1.1 billion in the quarter, split 50/50 between
segments Global Services and Support Solutions.

Region-wise, North America accounted for revenues of SEK
13 billion for Q2 FY12, up 5 percent Y-o-Y. The growth in North America region
was impacted by the decline in CDMA sales, however, partly offset by the
continued transition to LTE. Major wireless network expansion and
transformation projects contributed to the growth in Global Services sales.

Latin America grew 6 percent Y-o-Y to reach SEK 5.2
billion revenue, whereas North Europe and Central Asia stood at SEK3.4 billion,
plunged 26 percent as compared to revenue a year earlier.

Revenues from Western and Central Europe plunged 6
percent at SEK 4.1 billion, due to mpact from the macroeconomic environment
causing cautious operator capex spending and focus on measures to improve

Mediterranean grew 12 percent to reach at revenues of SEK
6.2 billion and Middle East up 4 percent to reach SEK 3.7 billion.

Revenues from India plunged maximum at 39 percent and
accounted at SEK 1.7 percent, due to the strong H111, when the initial 3G
deployments peaked. Also, rvenues of the company are largely being hampered by
regulatory uncertainties in India.

The company said that it sees some recovery in network
capex spend as Indian operators have started focused investments in areas where
data traffic is growing.

Revenues from China and North-East Asia recorded at SEK
8.4 billion, down 7 percent for the second quarter of 2012.

Revenues from South-East Asia and Sub-Saharan Africa grew
21 percent and 26 percent respectively.

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