Ericsson (ERIC) recently deployed its cutting-edge 5G Cloud Radio Access Network (RAN) technology on Turkcell Communication Services Inc's (TKC) network. Ericsson's Cloud RAN is a cloud-native solution that virtualizes radio access network functions and separates hardware from software. This design supports communication service providers (CSPs) in evolving toward cloud-native technologies and open network architectures, offering enhanced flexibility, faster service delivery and improved scalability for mod ...

iconectiv is a US subsidiary of Ericsson acquired in 2012, and a provider of network number portability solutions and data exchange services The divestment will allow iconectiv to continue its growth trajectory under the new ownership of Koch Equity Development LLC STOCKHOLM, Aug. 16, 2024 /PRNewswire/ -- Ericsson (NASDAQ: ERIC) announces that it has entered into a binding agreement with Koch Equity Development LLC in relation to the sale of iconectiv (the "Transaction"). Ericsson's cash benefit from the Tr ...

Industry Veteran and Former adidas Group Executive Will Join the Company Following the Acquisition of UNLESS COLLECTIVE, INC BALTIMORE, Md., Aug. 6, 2024 /PRNewswire/ -- Under Armour, Inc. (NYSE: UA, UAA) today announced that Eric Liedtke will join the company as Executive Vice President of Brand Strategy following the completion of its acquisition of UNLESS COLLECTIVE, INC (UNLESS), a zero-plastic regenerative fashion brand. The transaction is expected to be completed later this week. Eric Liedtke, Under A ...

PLANO, Texas, Aug. 6, 2024 /PRNewswire/ -- Ericsson (NASDAQ: ERIC) today announced a landmark collaboration with NRTC, Southern Linc, and Anterix (NASDAQ: ATEX) to deliver cutting-edge private network solutions to electric cooperatives (co-ops) of all sizes and service terrains across the United States. This strategic partnership aims to provide reliable, resilient, and secure network infrastructure, empowering co-ops to meet the challenges of modernizing the grid infrastructure and ensuring uninterrupted s ...

Ericsson and UScellular are collaborating to enhance 5G transport infrastructure and reliable 5G networks in rural communities across the U.S. Local economies will receive a boost by the enablement of modern digitalization services as part of midband deployment that started in 2023, continues in 2024 and beyond PLANO, Texas, Aug. 5, 2024 /PRNewswire/ -- Ericsson (NASDAQ: ERIC) and UScellular (NYSE: USM) today announced an infrastructure upgrade, leveraging Ericsson's existing Router 6000 portfolio along wit ...

AI-powered platform drives better management of voice connectivity and deeper, smarter voice engagement HOLMDEL, N.J., July 25, 2024 /PRNewswire/ -- Vonage, a global leader in cloud communications helping businesses accelerate their digital transformation and a part of Ericsson (NASDAQ: ERIC), has announced the launch of intelligent SIP capabilities for SIP Trunking customers. With just a few clicks, developers and enterprises can easily deploy elastic SIP trunks globally, and access rich, AI-powered voice ...

Financial Data and Key Metrics Changes - Organic sales declined by 7% in Q2 2024, primarily driven by networks, although North America saw a selective increase in investments from larger customers [3][18] - Gross margin for the group was reported at 43.9%, supported by strategic actions and a new 5G licensing agreement [16][21] - Adjusted EBITA increased to SEK4.1 billion with a margin of 6.8% despite lower sales [22] - Free cash flow was SEK7.6 billion before M&A, showing significant improvement due to favorable changes in working capital [23] Business Line Data and Key Metrics Changes - In the Networks segment, organic sales were down by 11% year-on-year, with a notable decline in India following last year's rapid 5G rollout [112] - The Cloud Software and Services segment saw stable organic sales year-on-year, with an adjusted gross margin of 47.2% [106] - The Enterprise segment experienced stable sales overall, with increased demand for private cellular network solutions [115] Market Data and Key Metrics Changes - Sales in Southeast Asia, Oceania, and India decreased by 44%, attributed to the normalization of the market after last year's 5G rollout [10] - In Europe and Latin America, sales decreased by 3%, with increased competition from Chinese vendors noted [19] - North America returned to growth for the first time since 2022, with sales up 20% [18][112] Company Strategy and Development Direction - The company aims to strengthen its leadership in mobile networks while expanding into enterprise solutions and pursuing cultural transformation [107][108] - The focus remains on leveraging technology leadership and creating new monetization models through network APIs [27][119] - The strategic rationale for the Vonage acquisition is to create new ways to monetize network capabilities despite recent impairment charges [8][172] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging market environment but emphasized the underlying strength of the business and competitive portfolio [26] - Future growth is expected to be supported by North America, although overall market conditions remain cautious [24][139] - The need for new revenue streams beyond mobile broadband subscriptions is critical for long-term industry growth [119] Other Important Information - The company recorded an impairment related to Vonage, reflecting lower anticipated market growth rates [8] - Adjusted gross margin in the Enterprise segment increased to 51.1%, although EBITA was a loss of SEK1.2 billion due to higher operating expenses [116] Q&A Session Summary Question: What is the outlook for North America and other regions? - Management noted that North America is seeing selective investments, but visibility into sustainability beyond AT&T is limited [38][39] Question: How does the company view competition from Chinese vendors? - Management confirmed increased competition from Chinese vendors in Europe and Latin America, but emphasized the importance of maintaining gross margins [19][152] Question: What is the timeline for achieving profitable growth in the Vonage business? - Management stated it is too early to provide a specific timeline for profitable growth in the Vonage business [84] Question: How does the company plan to manage costs amid declining sales? - Management highlighted ongoing cost reduction actions and the need to balance investments in R&D with maintaining gross margins [22][166] Question: What are the drivers for the expected gross margin improvement in Q3? - Management indicated that cost-out activities and a favorable geographical mix are expected to support gross margin improvement [60][139]

Core Insights - Ericsson reported a net loss of SEK 11 billion ($1.03 billion) in Q2 2024, compared to a net loss of SEK 0.6 billion in the same quarter last year, primarily due to non-cash impairment charges and declining net sales [1] - The company's revenue for Q2 2024 was SEK 59.8 billion ($5.59 billion), down 7% year over year, but exceeded the Zacks Consensus Estimate of $5.29 billion [9] - The Networks segment saw a revenue decline of 11% year over year, generating SEK 37.7 billion ($3.53 billion), although it surpassed revenue estimates [2][8] Revenue Breakdown - Revenue from South-East Asia, Oceania, and India fell to SEK 7.7 billion ($720 million) from SEK 13.8 billion in the prior-year quarter, while North America saw a 15% increase in revenue to SEK 16.6 billion ($1.55 billion) [3][8] - The Cloud Software and Services segment contributed SEK 15.2 billion ($1.42 billion) in revenues, slightly up from SEK 15.1 billion in the year-ago quarter, surpassing revenue estimates [16] - Enterprise sales remained flat at SEK 6.5 billion ($608 million), with a 2% year-over-year increase, driven by growth in Enterprise Wireless Solutions [10] Margin and Cost Management - The gross margin for the Networks segment improved to 46.1% from 39.3% in the year-ago quarter, supported by higher IPR licensing revenues and cost reduction actions [2][4] - Adjusted gross margin for the overall company increased to 43.9%, up from 38.3% in the previous year, driven by enhanced gross profitability [25] Future Outlook - Management anticipates continued challenges in market conditions due to a slowdown in network investments in India, but expects contract deliveries in North America to improve net sales in the second half of the year [5][8] - For Q3 2024, revenues from the Networks and Cloud Software and Services segments are expected to follow historical seasonal trends, with adjusted gross margin in the Networks segment projected to be between 45-47% [19]

Core Insights - Ericsson reported a 7% year-over-year decline in overall revenue, totaling 59.85 billion Swedish kronor ($5.68 billion), but North American sales increased by 15% to SEK16.6 billion [1][3] - The company's American depositary receipts (ADRs) reached their highest level in nearly two years following the positive sales report [1] - Despite the revenue drop, the company incurred a net loss of SEK11.0 billion due to a SEK11.4 billion impairment charge, resulting in a loss per share of SEK3.34 [1] Company Performance - The overall revenue decline was primarily attributed to an 11% drop in networks revenue [1] - CEO Börje Ekholm indicated that industry investment levels are "unsustainably low" and expects challenging market conditions to persist throughout the year [3] - The company anticipates a sales boost in the second half of the year from contract deliveries in North America [3] Market Reaction - Following the earnings report, Ericsson's ADRs rose by 4.2% to $6.66, marking an increase of almost 6% year-to-date [3]

Core Insights - The company reported a decline in net sales by 7% year-over-year, with a total of SEK 59.8 billion compared to SEK 64.4 billion in the previous year, but experienced growth in North America by 14% [12] - Adjusted gross margin improved to 43.9%, up from 38.3%, driven by higher IPR licensing revenue and cost actions, while reported gross margin was 43.1% compared to 37.4% [12] - The company recorded a significant impairment charge of SEK 11.4 billion, impacting net income, which resulted in a loss of SEK 11.0 billion compared to a loss of SEK 0.6 billion in the previous year [12][15] - Free cash flow before M&A was SEK 7.6 billion, a significant improvement from a negative SEK 5.0 billion, benefiting from enhanced working capital management [12] Financial Performance - Adjusted EBITA was SEK 4.1 billion with a margin of 6.8%, compared to SEK 3.7 billion and 5.7% margin in the previous year, while reported EBITA was SEK 2.4 billion, up from SEK 0.5 billion [12] - The company maintained a strong gross margin in its Networks segment at 46.1%, up from 39.3% [12] - The adjusted EBIT margin excluding impairments was 5.4%, compared to 4.4% in the previous year, indicating improved operational efficiency [3] Strategic Developments - The company is focused on building a global platform for network APIs, which is essential for the digitalization of enterprises and is expected to drive future growth in the telecom industry [2] - The company has been recognized as a leader in 5G technology for the fourth consecutive year and has made progress in establishing partnerships to enhance its global network platform [5] - The CEO emphasized the need to optimize business operations amid a challenging market environment, particularly due to low industry investment levels [6]