CSCO Cisco Systems Inc

By Jens Hansegard 

STOCKHOLM--Swedish mobile network supplier Ericsson AB has reported a 67% increase in fourth-quarter net profit, helped by a stronger dollar and by higher licensing revenue from a new global license deal with Apple Inc.

Net profit rose to 7.06 billion Swedish kronor ($825.3 million) in the three months to end-September from 4.22 billion kronor in the same period a year earlier, the company said on Wednesday. The profit was below analysts' expectations of 7.34 billion kronor.

Revenue from Intellectual property rights increased to 14.4 billion kronor from 9.9 billion kronor in the same quarter last year, boosted by the new global license agreement with Apple Inc.

Net sales increased to 73.6 billion kronor, higher than 68.0 billion kronor a year earlier, but below analysts' forecast for 74.07 billion kronor. Adjusted for comparable units and currency, sales fell 1%. The company's closely watched gross margin, which has been under pressure over past years, remained unchanged at 36.3%.

The company declared a 8.8% higher full-year dividend of 3.70 kronor a share, up from 3.40 kronor in 2014.

Ericsson's improved but disappointing performance follows its agreement announced last November with Cisco Systems Inc. designed to combine Cisco's strength in Internet technology with the Swedish company's expertise in equipment used by wireless operators. The companies agreed to collaborate in areas that include making existing products work better together, while Ericsson will resell Cisco gear.

Write to Jens Hansegard at jens.hansegard@wsj.com

(END) Dow Jones Newswires

January 27, 2016 02:32 ET (07:32 GMT)

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