[Ericsson discloses the information provided herein pursuant to the
Swedish Securities Exchange and Clearing Operations Act and/or the
Swedish Financial Instruments Trading Act. The information was
submitted for publication at 07.30 CET, on July 20, 2007.]
* Net sales SEK 47.6 (44.0) b. in the quarter, up 8%, SEK 89.8 (83.2)
b. first six months 1)
* Operating income SEK 9.3 (8.3) b. in the quarter, up 12%, SEK 17.4
(14.9) b. first six months
* Operating margin 19.4% (18.4%) in the quarter, 19.4% (17.6%) first
six months
* Cash flow from operations SEK 4.2 (0.2) b. in the quarter, SEK 8.8
(2.6) b. first six months
* Net income SEK 6.4 (5.7) b. in the quarter, up 12%, SEK 12.2 (10.3)
b. first six months 2)
* Earnings per share SEK 0.40 (0.36) in the quarter, up 11%, SEK 0.77
(0.65) first six months 2)
CEO COMMENTS"We continue to outpace the market," said Carl-Henric Svanberg,
President and CEO of Ericsson (NASDAQ:ERIC). "Sales showed an
encouraging year-over-year increase this quarter, primarily driven by
Asia Pacific. Europe, Middle East and Africa were softer while we see
improving trends in the Americas. Margins were stable with improved
cash generation.
The total number of mobile subscriptions has now reached three
billion, a milestone for our industry. GSM shipments reach new record
levels every quarter and we continue to see growing demand for mobile
and fixed broadband. We see dramatic data traffic increases in the
HSPA networks that we monitor.
We have strengthened our position through the recent acquisitions,
and the announced IP broadband agreement with AT&T was a breakthrough
in the North American market, confirming our strong offering in
next-generation networks.
Our services business continues to expand faster than the market and
several managed services contracts will start to be revenue
generating in coming quarters. We are in a start-up phase in
multimedia, where sales and margins will vary. Tandberg Television is
now part of our group and will add significant strength. On the
handset side, Sony Ericsson had another quarter of strong performance
and market share increase.
In the ongoing industry consolidation we are expanding our footprint
in mobile as well as fixed communications. Our scale advantage from
over 40% market share in GSM and WCDMA is obvious and enables
technology leading and affordable solutions to an expanding and
increasingly demanding market," concluded Carl-Henric Svanberg.
FINANCIAL HIGHLIGHTS
Income statement and cash flow
Second quarter First quarter Six months
SEK b. 2007 2006 1) Change 2007 Change 2007 2006 1) Change
Net sales,
excl.
divested
operations 47.6 44.0 8% 42.2 13% 89.8 83.2 8%
Net sales 47.6 44.8 6% 42.2 13% 89.8 84.3 6%
Gross
margin 43.0% 42.6% - 43.0% - 43.0% 43.0% -
EBITDA
margin 23.9% 22,3% - 23.8% - 23.8% 22.0% -
Operating
income 9.3 8.3 12% 8.2 14% 17.4 14.9 17%
Operating
margin 19.4% 18.4% - 19.3% - 19.4% 17.6% -
Operating
margin
ex Sony
Ericsson 16.4% 16.3% - 15.5% - 16.0% 15.7% -
Income after
financial
items 9.3 8.3 12% 8.3 12% 17.5 15.0 17%
Net income 2) 6.4 5.7 12% 5.8 10% 12.2 10.3 18%
Cash flow
from
operations 4.2 0.2 - 4.6 - 8.8 2.6 -
EPS, SEK 2) 0.40 0.36 11% 0.37 8% 0.77 0.65 18%
1)Excludes sales from the in 2006 divested defense business, Ericsson
Microwave systems.
2)Attributable to stockholders of the parent company, excluding
minority interest.
The second quarter year-over-year sales increase of 8% was driven by
organic growth and acquired sales. Organic growth amounted to 6%. The
USD has continued to weaken and affected sales growth negatively.
Gross margin was stable sequentially and up 0.4%-points
year-over-year. The operating margin increased sequentially,
excluding Sony Ericsson, as a result of increased sales and continued
focus on operational excellence, including a completed streamlining
of the former Marconi operations. Sony Ericsson's pre-tax profit was
down sequentially but was flat when adjusted for increased royalty
fees to the parent companies.
Cash flow from operating activities reached SEK 4.2 (0.2) b., a
year-over-year improvement.
Balance sheet and other performance indicators
Six months Three months Full year
SEK b. 2007 2007 2006
Net cash 16.1 29.1 40.7
Interest-bearing
provisions and
liabilities 32.6 22.6 21.6
Trade receivables 55.3 52.4 51.1
Days sales outstanding 106 107 85
Inventory 24.6 24.1 21.5
Of which work in
progress 14.1 14.9 14.2
Inventory turnover 4.4 4.2 5.2
Customer financing, net 3.7 3.8 3.7
Return on capital
employed 24.2% 23.8% 27.4%
Equity ratio 54.4% 56.6% 56.2%
Deferred tax assets decreased in the quarter by SEK 1.4 b. to SEK
12.7 (14.1) b.
Working capital increased by SEK 7.8 b. in the quarter. This increase
reflects the continued growth of turnkey projects in emerging
markets.
During the quarter, approximately SEK 1.3 b. of provisions was
utilized to cover costs incurred of which the majority was related to
previously announced restructuring programs and ongoing product
related commitments. New net provisions of SEK 0.1 b. have been made
in the quarter.
SEGMENT RESULTS
Second quarter First quarter Six months
2007 2006 2007 2007 2006
SEK b. 1) 2) Change 1) Change 1) 2) Change
Networks
sales 33.7 31.4 7% 29.3 15% 63.0 59.5 6%
Of which
Network rollout 4.3 3.4 26% 3.8 15% 8.1 7.4 10%
Operating
margin 19% 19% - 17% - 18% 18% -
Professional
Services sales 10.3 9.2 11% 9.5 8% 19.8 17.5 13%
Of which
Managed
services 2.9 2.4 21% 2.6 12% 5.5 4.7 16%
Operating
margin 15% 16% - 15% - 15% 15% -
Multimedia
sales 3.6 3.4 6% 3.4 8% 7.0 6.2 12%
Operating
margin 0% 1% - 8% - 4% 2% -
Total sales 47.6 44.0 8% 42.2 13% 89.8 83.2 8%
Of which
Mobile
systems 32.7 30.9 6% 28.4 15% 61.1 57.6 6%
1)Acquired companies are included from date of acquisition.
2)Excludes sales from the in 2006 divested defense business, Ericsson
Microwave Systems.
Networks
The 7% year-over-year sales increase in Networks was driven by a 6%
growth in mobile systems. Operating margin increased sequentially due
to higher volumes and tight cost control. Fixed networks showed even
higher growth, also excluding the acquisition of Redback. The supply
chain restructuring of optical transmission is done, which completes
the integration of former Marconi products.
The demand for GSM continues with new delivery records and during the
quarter Ericsson delivered its millionth GSM base station. Growth is
primarily driven by new network deployments and capacity expansions
in high-growth markets. Basically all WCDMA network rollouts are
HSPA-enabled. Upgrades are ongoing in previously deployed WCDMA
networks, laying the foundation for the accelerated migration to
mobile broadband.
The combination of Redback and Ericsson's global sales organization
is generating considerable business opportunities and several new
contracts have been announced. We have completed the first critical
integration phase, including leveraging Ericsson's supply chain
capabilities, and we are now entering the next phase, which includes
the alignment of sales channels.
Professional Services
Sales in Professional Services grew by 11% year-over-year and
continue to outpace the market. Growth in local currencies amounted
to 14%. Growth was slower in network design and systems integration.
The high activity level in previous quarters has now translated into
increased network rollout activities, reported in Networks. Operating
margin was stable.
Managed services grew by 21%, or 24% in local currencies, and recent
key wins confirm our strong lead. A new agreement with Oi in Brazil,
as well as earlier announced agreements with Orange in the
Netherlands and Belgium, Vodafone and KPN in the Netherlands, and the
European-wide spare part contract with Vodafone, will start to
contribute to sales in the third quarter. Ericsson is managing
networks that together serve more than 135 million subscribers
worldwide.
Multimedia
Growth was 6% year-over-year. We continue to build a strong position
in this growing business segment. As previously indicated, Multimedia
sales will vary between quarters. Sales, excluding Tandberg
Television, were down sequentially, affected by timing of completion
of several larger revenue management projects. Operating margin was
negatively affected as a result.
During the quarter, Mobeon and Drutt were acquired and a public offer
was made for LHS, a world leader in post-paid billing systems.
Tandberg Television is consolidated from May 2007. During the
quarter, Tandberg secured new contracts from broadcasters and
operators who are launching IPTV, HDTV and on-demand interactive
video services.
Sony Ericsson Mobile Communications
For information on transactions with Sony Ericsson Mobile
Communications, please see Financial statements and Additional
information.
Second quarter First quarter Six months
EUR m. 2007 2006 Change 2007 Change 2007 2006 Change
Number of
units
shipped (m.) 24.9 15.7 59% 21.8 15% 46.7 29.0 61%
Average selling
price (EUR) 125 145 -14% 134 -7% 129 147 -12%
Net sales 3,112 2,272 37% 2,925 6% 6,037 4,264 42%
Gross margin 29.5% 28.5% - 30.3% - 29.9% 27.4% -
Operating margin 10.1% 8.9% - 11.8% - 11.0% 8.1% -
Income
before taxes 327 211 55% 362 -10% 689 362 90%
Net income 220 143 54% 254 -13% 474 252 88%
Sony Ericsson continued to show profitable growth and market share
gains. The company continued to strengthen its product line by
announcing a large number of new products across a variety of price
points, including the K850, a HSPA, 5 mega-pixel, flag-ship,
Cyber-shot phone, and the W960, a high-end Walkman phone with 8 GB of
on-board storage.
Sony Ericsson is building premium positions also in the low- and
mid-tier segments. The volumes increased faster in these segments,
resulting in a decline in average selling price. The underlying gross
margin, when adjusted for increased parent company royalties, was
stable.
Ericsson's share in Sony Ericsson's income before tax was SEK 1.5
(1.0) b. in the quarter.
REGIONAL OVERVIEW
Second quarter First quarter Six months
Sales, SEK b. 2007 2006 1) Change 2007 Change 2007 2006 1) Change
Western Europe 12.4 12.4 0% 12.5 -1% 24.9 23.7 5%
Central &
Eastern
Europe, Middle
East& Africa 11.5 11.5 0% 11.0 4% 22.5 20.8 8%
Asia Pacific 16.6 12.6 32% 12.3 36% 28.9 22.3 30%
Latin America 4.1 3.8 7% 3.3 23% 7.4 7.5 -1%
North America 3.0 3.7 -18% 3.1 -3% 6.1 8.9 -31%
1) Excludes sales from the in 2006 divested defense business,
Ericsson Microwave Systems.
The market in Western Europe was soft. This development is primarily
a result of ongoing operator consolidation in Italy and shared
networks discussions in UK, putting investment decisions on temporary
hold.
A 3G/HSPA contract was signed with Vodafone Spain. Other significant
contracts were announced with Telefónica Deutschland and Wind in
Italy. New managed services contracts were announced with Vodafone
and KPN in the Netherlands.
In Central and Eastern Europe, Middle East and Africa, the high
business activity continues, but the large new network rollouts and
expansion projects create sales fluctuations between quarters. A
number of new contracts have been awarded in the quarter, especially
in the Middle East, and major rollouts continue in sub-Sahara. GSM
sales to Russia are lower while 3G preparations are ongoing.
Asia Pacific's sales development was very strong and primarily driven
by continued expansions in China, India, Bangladesh, Japan and South
East Asia. A USD 1 billion GSM expansion agreement with China Mobile
was signed. New GSM business with Orascom in Bangladesh was awarded.
A USD 2 billion contract, Ericsson's largest to date, has been signed
with Bharti Airtel for GSM/EDGE network infrastructure.
Latin America is recovering as expected. Sales during the quarter
were mainly driven by GSM rollouts and expansions in most markets,
however, Brazil and Mexico are still slow. 3G rollouts are
accelerating throughout the region.
In North America, the sales gap versus last year is closing. HSPA is
now available in more than 165 AT&T markets, the demand is strong and
rollout continues. During the quarter, an agreement was reached with
AT&T for their "U-verse" IP broadband rollout. This was a
breakthrough for Ericsson in next-generation networks and a vote of
confidence in our expanded product portfolio and capabilities.
MARKET DEVELOPMENT
Growth rates based on Ericsson and market estimates.
Fixed and mobile traffic accelerates due to increased coverage, usage
and new multimedia services. Operator investments in infrastructure
equipment over the long-term should continue to grow along historical
trends of mid- to high-single digits. Infrastructure investments vary
over time and between regions depending on regulatory developments,
license awards and new technology deployments.
Mobile subscriptions grew with some 140 million in the quarter to 3
billion, ahead of previous estimates. 2.6 billion are GSM/WCDMA
subscriptions. 135 million are WCDMA subscriptions, growing by 17
million in the quarter. There are 164 WCDMA networks in 73 countries,
of which 117 are upgraded to HSPA services.
Data traffic in mobile networks accelerates and HSPA has generated a
dramatic step up in data traffic. In networks we monitor data traffic
has doubled the last six months.
In the twelve-month period ending March 31, 2007, fixed broadband
connections grew by 17 million per quarter, to a total of
approximately 300 million.
Growth both within the mobile systems market and the fixed
infrastructure market in the twelve-month period ending March 31,
2007 is estimated to have been mid-single digit. IP broadband and
optical transmission related products showed the strongest
development.
The telecom services market in the twelve-month period ending March
31, 2007, is estimated to have shown good growth with managed
services being the fastest growing area. Within the emerging
multimedia market, growth has accelerated but with large variations
between different market segments.
MARKET OUTLOOK FOR MOBILE INFRASTRUCTURE AND SERVICES
All estimates are measured in USD and refer to market growth compared
to previous year.
For 2007 we continue to believe that the GSM/WCDMA track within the
global mobile systems market, measured in USD, will continue to show
mid-single digit growth.
We also continue to believe that the addressable market for
professional services is expected to show good growth in 2007.
With our technology leadership and global presence we are well
positioned to take advantage of these market opportunities.
PARENT COMPANY INFORMATION
In accordance with new Swedish reporting requirements for listed
companies, effective July 1, 2007, additional information for the
parent company is to be included in the six- and twelve-month period
reports.
Net sales for the six-month period amounted to SEK 1.7 (1.3) b. and
income after financial items was SEK 8.3 (6.6) b. Patent license fees
have been included in net sales from 2007, instead of in other
operating revenues, and 2006 has been restated accordingly.
Major changes in the Parent Company's financial position for the
six-month period include: increased investments in subsidiaries of
SEK 27.6 b., mostly attributable to the Tandberg, Redback and
Entrisphere acquisitions and the future acquisition of LHS; decreased
other current receivables of SEK 3.2 b.; decreased cash and bank and
short-term investments of SEK 17.4 b., mainly related to the
acquisitions mentioned, payment of dividend for 2006 of SEK 7.9 b. to
shareholders and cash from new non-current borrowings; increased
notes and bond loans by SEK 11.1 b. through a new bond issue program;
current and non-current liabilities to subsidiaries decreased by SEK
7.6 b.
As per June 30, 2007, cash and bank and short-term investments
amounted to SEK 36.6 (54.0) b.
Major transactions and balances with related parties include the
following with Sony Ericsson Mobile Communications: revenues of SEK
1,214 (448) m.; liabilities of SEK 933 (1) m.; dividend of SEK 2,561
(1,160) m.
In accordance with the conditions of the Stock Purchase Plans and
Option Plans for Ericsson employees, 4,059,795 shares from treasury
stock were sold or distributed to employees during the second
quarter. The holding of treasury stock at June 30, 2007 was
242,579,010 Class B shares.
OTHER INFORMATION
Extraordinary General Meeting
At the Extraordinary General Meeting (EGM) on June 28, the EGM
resolved to implement a long-term variable compensation program 2007
(LTV 2007). The LTV 2007 is based on the same principles as the
long-term incentive plan 2006 and covers all employees through three
different programs.
Acquisitions and public offerings
On June 5, Ericsson announced a voluntary public cash offer to
acquire LHS AG for approximately EUR 310 m. The company employs
around 550 people and has its headquarters in Frankfurt. Sales
amounted to EUR 71.6 m. in 2006 with strong sales momentum.
On June 27, the acquisition of Drutt Corporation was closed. Drutt is
a leading provider of service delivery platform solutions with
operations in Sweden, China, Canada and Mexico and employs around 85
people.
Credit rating
On May 14, Moody's Investors Service upgraded Ericsson's long-term
debt ratings to Baa1 from Baa2 and affirmed the Company's Prime 2
short-term debt ratings. According to Moody's, the upgrade was based
on Ericsson's growing track record of robust profitability and very
conservative financial structure.
On June 15, Standard & Poor's upgraded Ericsson's credit rating two
notches to BBB+/A-2 from BBB-/A-3. The upgrade is predicated on
Standard & Poor's expectations that Ericsson will continue to benefit
significantly from the expansion of the global mobile systems market,
thanks to its leading market positions in key second and third
generation mobile network systems technologies and its low cost
breakeven point. Standard & Poor's said that the rating reflects
Ericsson's remarkably strong capital structure and liquidity
position.
Funding program
In the quarter, Ericsson completed a multi-currency bond issue
program of SEK 11.1 b. The proceeds of the offering are mainly
intended for the re-financing of existing loans.
On July 16, Ericsson signed a new seven-year USD 2 b. committed
back-up facility with its core group of banks, which replaces the
existing USD 1 b. five-year back-up facility.
New information sections
In accordance with new Swedish reporting requirements for listed
companies, effective July 1, 2007, two additional sections have been
added to the report for the six-month period; Assessment of risk
environment and Board assurance. The full Board is also required to
sign the six-month interim report. The same requirements apply to the
report for the twelve-month period.
Assessment of risk environment
We have reviewed Ericsson's operational and financial risk factors
and exposures as described under "Risk factors" in our 2006 Annual
Report and have determined that the risk environment has not
materially changed. However, the increased activities related to the
new Multimedia segment may result in a more volatile quarterly sales
pattern. Specific additional risks for the near term are associated
with the acquisitions made during 2007, as a timely and effective
integration of these is essential to make them accretive as planned.
Risk factors and exposures in focus for the Parent Company and the
Ericsson Group for the forthcoming six-month period include: changes
in foreign exchange rates, in particular a continued weakness or
further deterioration of the USD/SEK rate; increases in interest
rates and the potential effect on our customers' willingness to
invest in network development; effects of the ongoing industry
consolidation among our customers as well as between our largest
competitors; an increased volume of turn-key projects, which may
result in working capital build-up which in turn puts pressure on our
cash conversion rate.
Ericsson conducts business in certain countries subject to trade
restrictions or which are focused on by certain investors. We
stringently follow all relevant regulations and trade embargos
applicable to us in our dealings with customers operating in such
countries. Moreover, Ericsson operates globally in accordance with
Group level policies and directives for ethics and conduct. In no way
should our business activities in these countries be construed as
supporting a particular political agenda or regime. We have
activities in such countries mainly due to certain customers with
multi-country operations puts demands on us to support them in all of
their markets.
Please further refer to Ericsson's Annual report 2006 to learn more
about our risks and uncertainties along with our strategies and
tactics to mitigate the risk exposures or limit unfavorable outcomes
which remains valid also for 2007.
BOARD ASSURANCE
The Board of Directors and the CEO certify that the half-yearly
financial report gives a fair review of the performance of the
business, position and profit or loss of the Company and the Group,
and describes the principal risks and uncertainties that the Company
and the companies in the Group face.
Stockholm, July 20, 2007
Telefonaktiebolaget LM Ericsson (publ)
Org. Nr. 556016-0680
Sverker Martin-Löf Michael Treschow Marcus Wallenberg
Deputy chairman Chairman Deputy chairman
Nancy McKinstry Sir Peter L. Bonfield Anders Nyrén
Member of the board Member of the board Member of the board
Börje Ekholm Ulf J. Johansson Katherine Hudson
Member of the board Member of the board Member of the board
Torbjörn Nyman Monica Bergström Jan Hedlund
Member of the board Member of the board Member of the board
Carl-Henric Svanberg
Member of the board and
President and CEO
REVIEW REPORT
We have reviewed this report for the period January 1 to June 30,
2007, for Telefonaktiebolaget LM Ericsson (publ). The board of
directors and the CEO are responsible for the preparation and
presentation of this interim financial information in accordance with
IAS 34 and the Annual Accounts Act. Our responsibility is to express
a conclusion on this interim financial information based on our
review.
We conducted our review in accordance with the Standard on Review
Engagements SÖG 2410, Review of Interim Financial Information
Performed by the Independent Auditor of the Entity, issued by FAR. A
review consists of making inquiries, primarily of persons responsible
for financial and accounting matters, and applying analytical and
other review procedures. A review is substantially less in scope than
an audit conducted in accordance with Standards on Auditing in
Sweden, RS, and other generally accepted auditing practices. The
procedures performed in a review do not enable us to obtain a level
of assurance that would make us aware of all significant matters that
might be identified in an audit. Therefore, the conclusion expressed
based on a review does not give the same level of assurance as a
conclusion expressed based on an audit.
Based on our review, nothing has come to our attention that causes us
to believe that the accompanying interim financial information is
not, in all material respects, in accordance with IAS 34 and the
Annual Accounts Act.
Stockholm, July 20, 2007
PricewaterhouseCoopers AB
Bo Hjalmarsson Peter Clemedtson
Authorized Public Accountant Authorized Public Accountant
Lead partner
Date for next report: October 25, 2007
EDITOR'S NOTE
To read the complete report with tables, please go to:
www.ericsson.com/investors/financial_reports/2007/6month07-en.pdf
Ericsson invites media, investors and analysts to a press conference
at the Ericsson headquarters, Torshamnsgatan 23, Stockholm, at 09.00
(CET), July 20.
An analyst and media conference call will begin at 14.00 (CET).
Live audio webcasts 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
FOR FURTHER INFORMATION, PLEASE CONTACT
Henry Sténson, Senior Vice President, Communications
Phone: +46 8 719 4044
E-mail: investor.relations@ericsson.com or
press.relations@ericsson.com
Investors
Gary Pinkham, Vice President,
Investor Relations
Phone: +46 8 719 0000
E-mail: investor.relations@ericsson.com
Susanne Andersson,
Investor Relations
Phone: +46 8 719 4631
E-mail: investor.relations@ericsson.com
Glenn Sapadin,
Investor Relations,
North America
Phone: +1 212 843 8435
E-mail: investor.relations@ericsson.com
Media
Åse Lindskog, Vice President,
Head of Media Relations
Phone: +46 8 719 9725, +46 730 244 872 E-mail:
press.relations@ericsson.com
Ola Rembe, Vice President
Phone: +46 8 719 9727, +46 730 244 873
E-mail:press.relations@ericsson.com
Telefonaktiebolaget LM Ericsson (publ)
Org. number: 556016-0680
Torshamnsgatan 23
SE-164 83 Stockholm
Phone: +46 8 719 00 00
www.ericsson.com
Safe Harbor Statement of Ericsson under the Private Securities
Litigation Reform Act of 1995;
All statements made or incorporated by reference in this release,
other than statements or characterizations of historical facts, are
forward-looking statements. These forward-looking statements are
based on our current expectations, estimates and projections about
our industry, management's beliefs and certain assumptions made by
us. Forward-looking statements can often be identified by words such
as "anticipates", "expects", "intends", "plans", "predicts","believes", "seeks", "estimates", "may", "will", "should", "would","potential", "continue", and variations or negatives of these words,
and include, among others, statements regarding: (i) strategies,
outlook and growth prospects; (ii) positioning to deliver future
plans and to realize potential for future growth; (iii) liquidity and
capital resources and expenditure, and our credit ratings; (iv)
growth in demand for our products and services; (v) our joint venture
activities; (vi) economic outlook and industry trends; (vii)
developments of our markets; (viii) the impact of regulatory
initiatives; (ix) research and development expenditures; (x) thestrength of our competitors; (xi) future cost savings; (xii) plans to
launch new products and services; (xiii) assessments of risks; (xiv)
integration of acquired businesses; (xv) compliance with rules and
regulations and (xvi) infringements of intellectual property rights
of others.
In addition, any statements that refer to expectations, projections
or other characterizations of future events or circumstances,
including any underlying assumptions, are forward-looking statements.
These forward-looking statements speak only as of the date hereof and
are based upon the information available to us at this time. Such
information is subject to change, and we will not necessarily inform
you of such changes. These statements are not guarantees of future
performance and are subject to risks, uncertainties and assumptions
that are difficult to predict. Therefore, our actual results could
differ materially and adversely from those expressed in any
forward-looking statements as a result of various factors. Important
factors that may cause such a difference for Ericsson include, but
are not limited to: (i) material adverse changes in the markets in
which we operate or in global economic conditions; (ii) increased
product and price competition; (iii) further reductions in capital
expenditure by network operators; (iv) the cost of technological
innovation and increased expenditure to improve quality of service;
(v) significant changes in market share for our principal products
and services; (vi) foreign exchange rate or interest rate
fluctuations; and (vii) the successful implementation of our business
and operational initiatives.
The full report including tables can also be downloaded from the
attached link.
