Ericsson Profit Rises on Dollar, Apple Pact
January 27 2016 - 3:10AM
Dow Jones News
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 02:55 ET (07:55 GMT)
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