uofalbany
18 years ago
NeoMedia's qode(R) Now Available for Sony-Ericsson JAVA Mobile Phones
By BusinessWire
Last Update: 10/11/2006 8:29:45 AM Data provided by
FORT MYERS, Fla., Oct 11, 2006 (BUSINESS WIRE) -- NeoMedia Technologies, Inc. (NEOM), a leader in market-driven technologies, announced today that its flagship direct-to-mobile-web qode(R) technology is now available through a free download to run on eight Sony-Ericsson(R) mobile phones based on the popular JAVA MIDP 2.0 technology.
Free downloads of NeoMedia qode software for JAVA are available to Sony-Ericsson users by invoking the browser on the phone and entering "get.qode.com." qode, including qode(R)reader and qode(R)window, can then be installed in just a few minutes by following instructions on the phone's screen.
List of Compatible Mobile Phones to Grow
NeoMedia, which plans to add more JAVA-based phones supporting qode in the coming weeks, previously introduced qode for the Symbian(R) Series 60 operating system, prevalent on Nokia(R) mobile phones.
NeoMedia's patented qode (www.qode.com) suite of easy-to-use applications includes qode(R)reader and qode(R)window, which provide One Click to Content(TM) connectivity for products, print, packaging and other physical objects to link directly to specific desired content on the Mobile Internet. qode(R)reader works with camera phones, letting users "click" on two-dimensional "smart codes" to connect directly to targets, while qode(R)window lets users enter a key word, phrase or product name to connect to a target.
"NeoMedia is delighted to announce that Sony-Ericsson is the latest manufacturer whose phones support the qode platform of consumer products," said Martin Copus, president of NeoMedia Mobile and COO of the parent company.
"Mobile marketing - the real-time live interconnection between consumers and marketing companies - is still in its infancy in the U.S., but has already taken wing in Europe and Asia," Mr. Copus said. "NeoMedia will continue to add to the list of manufacturers and mobile phones that support qode as mobile marketing continues to evolve here and grow around the world."
The Sony-Ericsson MIDP 2.0 phones now running qode include the Sony-Ericsson K600i, Sony-Ericsson K700i, Sony-Ericsson K750i, Sony-Ericsson S710a, Sony-Ericsson W550i, Sony-Ericsson W600i, Sony-Ericsson W900i, and Sony-Ericsson Z800, in use in both the U.S. and Europe according to m:metrics (www.mmetrics.com), a leading authority on the mobile marketplace.
About NeoMedia Technologies, Inc.
NeoMedia Technologies, Inc. (www.neom.com) is a diversified global company offering leading edge, technologically advanced products and solutions for companies and consumers, built upon its solid family of patented products and processes, and management experience and expertise. Its NeoMedia Mobile group of companies offers end-to-end mobile enterprise and mobile marketing solutions through its flagship qode direct-to-mobile-web technology and ground-breaking products and services from four of the leading mobile marketing providers in the U.S. and Europe. By linking consumers and companies to the interactive electronic world, NeoMedia delivers one-to-one, permission-based, personalized and profiled dialogue -- anytime and anywhere.
The qode suite of easy-to-use, market-driven products and applications are based on a strong foundation of patented technology, comprising the qode (www.qode.com) platform, qode(R)reader and qode(R)window, all of which provide One Click to Content(TM) connectivity for products, print, packaging and other physical objects to link directly to specific desired content on the mobile Internet.
NeoMedia companies and offerings include: 12snap AG (www.12snap.com), a Munich, Germany-based award-winning leader in mobile marketing and entertainment applications; Mobot, Inc. (www.Mobot.com), a Lexington, Massachusetts-based pioneer in mobile visual recognition technology; Sponge Ltd. (www.spongegroup.com), a London, UK-based leader in developing and implementing mobile marketing applications and content delivery; and Gavitec AG - mobile digit (www.gavitec.com), a Wurselen, Germany-based leading provider of mobile technology and marketing solutions.
Eric
20 years ago
Nice EMP Win: Sharp
* Ericsson's Mobile Platforms unit (EMP) will supply Sharp Corp. with 3G mobile phone platforms (presumably the U100) under a licensing deal.
* Ericsson has developed a single-chip baseband/multimedia processor that is being used on Ericsson's 2.5G and 3G platforms. The processor integrates an ARM9 core, Texas Instruments' C55 DSP and graphics acceleration blocks. The chip is fabricated by TI using a 0.13µm process, with a plan to move the geometry to 0.09µm later this year.
* Ericsson is currently testing its platform on seven networks, covering 2,072 out of 2,080 test cases required for interoperability.
* Sandeep Chennakeshu, president of Ericsson Mobile Platforms, said its mobile platforms have already been selected by a dozen customers, including Sony Ericsson, China's TCL Mobile, HTC, Sharp, LG, Microcell and LightOn. Some customers are planning multiple products based on the platform;
- Eight have signed contracts for developing wideband CDMA phones
- Two are for Edge phones
- Four contracts are for GPRS phones.
>> Ericsson Picks Up Sharp As New Licensee
Junko Yoshida
EE Times
01 Mar 2004
http://www.eetasia.com/ART_8800330794_499481,590626.HTM
Ericsson's Mobile Platforms unit will supply Sharp Corp. with 3G mobile phone platforms under a licensing deal.
Things are picking up for the Swedish cellphone maker as the telecommunications industry begins to see signs of growth. Ericsson has turned around by becoming "a debt-free company," CEO Carl-Henric Svanberg said during the 3GSM World Congress in Cannes, France.
Sandeep Chennakeshu, president of Ericsson Mobile Platforms, said its mobile platforms have already been selected by a dozen customers, including Sony Ericsson, China's TCL Mobile, HTC, Sharp, LG, Microcell and LightOn. Some customers are planning multiple products based on the platform; eight have signed contracts for developing wideband CDMA phones, said Chennakeshu. Two are for Edge phones, while four contracts are for GPRS phones.
Chennakeshu said Ericsson has developed a single-chip baseband/multimedia processor that is being used on Ericsson's 2.5G and 3G platforms. The processor integrates an ARM9 core, Texas Instruments' C55 DSP and graphics acceleration blocks. The chip is fabricated by TI using a 0.13µm process, with a plan to move the geometry to 0.09µm later this year.
"This is a flexible platform," said Chennakeshu, allowing customers to plug in an extra application co-processor, QVGA display or megapixel camera. The platform includes RF, power management, baseband/ multimedia processor and full protocol stacks.
Chennakeshu, who served as CTO at SonyEricsson before heading Ericsson Mobile Platforms, said the platforms unit has expertise in communication handovers that allow handsets to switch between different air interfaces, including GSM, GPRS, and UMTS.
Asked how Ericsson's platform differs from platforms or reference designs from chip vendors, Chennakeshu said all blocks on the platform are tested for interoperability. Hence, "we can save our customers' development costs and the time it takes for testing."
Ericsson is currently testing its platform on seven networks, covering 2,072 out of 2,080 test cases required for interoperability.
The stability of new 3G platforms remains a concern. Chennakeshu said, "We've passed all the internal tests." He cautioned however that 3G networks are new, different and require fine tuning.
"I was sleeping less six months ago when we couldn't identify whether certain problems we saw then resided in the network or somewhere else. But now I am sleeping a little better," he said. <<
- Eric -
extelecom
21 years ago
Ericsson Eyes More China Orders After $600M Deal
Wednesday August 20, 12:29 pm ET
By Robb M. Stewart, Of DOW JONES NEWSWIRES
STOCKHOLM (Dow Jones)--Sweden's Telefon AB LM Ericsson Wednesday said it has its eyes on further work in China, following the $600 million contract received Wednesday from Guangdong Mobile Communications Corp. Ltd.ADVERTISEMENT
China is expected later this year or in the first half of 2004 to issue third- generation network licenses to the country's telecommunications operators, Jan Malm, the head of Ericsson's Chinese operations, told Dow Jones Newswires. It could also see the emergence of new Chinese mobile operators.
That, on top of the increase in mobile customer subscriptions and traffic seen recently, should spark further orders for Ericsson's network equipment, Malm said.
China, alongside the U.S., stands as one of Ericsson's largest markets.
Malm said the rise in mobile traffic in China has been quicker than expected as operators become more competitive and reduce tariffs. This in turn has spurred a rise in new subscriptions.
China has yet to select the network standard it will adopt for 3G, but is reported to be considering the two global competing standards Wideband Code Division Multiple Access, or WCDMA, and CDMA2000, as well as a homegrown Chinese standard known as TD-SCDMA.
Malm said Ericsson sees TD-SCDMA as a local technology that could complement its own, rather than a technology it would compete against.
As reported, Ericsson said Wednesday that it has signed a deal to expand the Global System for Mobile, or GSM, -standard network of Guangdong Mobile, a subsidiary of China Mobile HK Ltd. , providing the infrastructure equipment to allow the network to reach 36 million subscribers. Guangdong Mobile is the largest mobile provider in China's Guangdong province and had 25 million subscribers at the end of June.
Ericsson has been pushed into the red by a sharp decline in investment by telecom operators globally, and posted a second-quarter net loss of SEK2.7 billion on the back of a roughly 20% decline in sales over a year ago.
However, the company said it remains committed to returning to a profit during 2003, having halved its operating expenses over the past eight quarters.
Company Web site: http://www.ericsson.com
-By Robb M. Stewart, Dow Jones Newswires; +46 8 545 130 94; robb.stewart@dowjones.com
Could it be time for the turnaround at ERICY?????? May be a good time to buy on any pull back
extelecom
21 years ago
GSM to overtake CDMA in USA
By Andrew Orlowski in San Francisco
Posted: 15/07/2003 at 22:40 GMT
When Nokia repeated its prediction that the global GSM standard could grab half of the US cellphone market, we were skeptical. Thanks to adoption by Verizon and SprintPCS networks, CDMA phones grabbed a seemingly impregnable lead in the United States. But the latest prediction from ABI Research suggests that the GSM family of standards, which includes GPRS, could overtake CDMA in a couple of years.
ABI pegs this year's numbers as 73 million CDMA handsets , or a 44 per cent share, versus 58 million, or a 35 per cent share. The latter is a dramatic increase from 11 per cent last year, thanks to AT&T Wireless moving from TDMA to GSM/GPRS.
According to the analyst company, GSM will draw level next year, 45 to 44 per cent, and nudge ahead in 2005. The share of others, which includes Nextel's iDEN will fall to 8 per cent. For the rest of the period for which ABI has made forecasts, GSM and CDMA technologies duke it out with scarcely a per centage point of difference between them.
Overall ABI sees plenty of growth yet in the US market. It suggests subscriber numbers will grow from 165 million this year to 204 million in 2008. ®
Bootnote: Nokia has its own typically understated observation to make about the politics of cellular standards. In a brochure showcasing business applications for the Series 60 platform, dated June 2003, the very excellent Opera browser is illustrated. The choice of story is interesting: a CNET report about Congressman Issa advocating that Congress ensure that the Iraqis are free to use only the very best CDMA networks. ®
extelecom
21 years ago
T-Mobile Contracts with Ericsson for GPRS, EDGE Expansion
Dan Meyer
RCR News
July 15, 2003
T-Mobile USA Inc. signed a $500 million contract with L.M. Ericsson to expand and upgrade its wireless network to support GPRS and EDGE data services.
The deal calls for Ericsson to deploy GSM, GPRS and EDGE radio access equipment and associated services in two new markets for T-Mobile USA in Western Virginia and parts of New England. In addition, Ericsson will upgrade and expand the carrier?s core network infrastructure, radio access equipment and associated services in 18 markets, including Atlanta, Boston, Miami, New Jersey, Philadelphia and Washington, D.C, where Ericsson equipment is already installed.
Ericsson also said it will deploy Adaptive Multi Rate technology, which is designed to increase radio access capacity and improve quality, across T-Mobile USA?s network.
T-Mobile USA announced a similar network upgrade contract earlier this year with Nortel Networks Ltd., which was valued at $300 million during four years and a deal last year with Nokia Corp. valued at $300 million over three years. <<
Eric
21 years ago
Sony Ericsson Q2 Shows Improvement
>> Sony Ericsson posts EUR 1.125 Million Net Sales
July 15, 2003
Telecom.paper
Sony and Ericsson today announced the financial summary for the second quarter, ended June 30, 2003 of Sony Ericsson Mobile Communications AB, the 50:50 joint venture of Sony and Ericsson. The company reported improved operating results and a strong increase in sales and shipments for its two core business areas; GSM and Japanese standards.
Units shipped in the quarter reached 6.7 million, which is 34% higher year-on-year and 23% higher compared to the first quarter 2003. Net sales for the quarter were EUR 1.125 million, representing year-on-year and sequential increases of 18% and 40%, respectively.
In the areas of strategic focus and in the wake of successful product launches, the GSM business posted 84% year-on-year growth in shipments, and Japanese standards shipments increased 45% year-on-year.
This business growth is attributable to a strengthened product offering coupled with strongly improved supply and logistics performance.
Income before taxes excluding restructuring charges was EUR –45 million and Net Income (excluding restructuring charges) was EUR –33 million, which represents year-on-year improvements of EUR 53 million and EUR 50 million, respectively. Income before taxes including restructuring was EUR -102 million and net income was EUR -88 million.
Sony Ericsson has earlier announced (June 24, 2003) the decision to increase its focus on GSM/EDGE/UMTS and Japanese standards. Further to the phase-out of Sony Ericsson's American CDMA business and GSM R&D activities in Munich, total restructuring costs are estimated to approximately EUR 70 million of which EUR 58 million has been recognized in the second quarter. The restructuring activities are well underway and are projected to generate yearly run-rate savings of approximately EUR 120 million when completed, with some benefit in the second half of 2003.
Sony Ericsson is expected to be profitable in the second half of 2003 as a result of the increasing momentum in the company's new GSM and Japanese product portfolio. However, Sony Ericsson will not be profitable for the full year 2003 due to restructuring costs and losses incurred in the first half of the year. <<
- Eric -
extelecom
21 years ago
Ericsson Rallies on Overhaul
By TSC Staff
04/29/2003 07:42 AM EDT
Shares of wireless infrastructure giant Ericsson (ERICY:Nasdaq ADR - news - commentary - research - analysis) took off in European and U.S. premarket trading Tuesday as the company outlined an aggressive restructuring aimed at bringing its cost structure into line with chronic industry weakness.
The Stockholm company also said its first-quarter loss widened to 4.31 billion kronor, or just over a half-billion dollars, from 2.97 billion kronor last year. Sales plunged 30%, both sequentially and year-over-year, to 25.86 billion kronor.
Investors focused on the restructuring and bid the shares up 14% to $8.50 on the Instinet premarket session.
The one bright spot in the first-quarter report reflected the company's already frantic efforts to cut expenses: Adjusted gross margin rose to 34.1% from 31.7%, reflecting lower component costs, better capacity utilization and other cost cuts. Ericsson employed a total of 60,940 people at the end of the first quarter, down from 82,012 last year.
The company said it will cut another 7,000 jobs and target a total headcount of 47,000 at year end. Previously it had intended to cut overall employment to 54,000.
"We remain determined to return to profit during 2003 excluding additional charges for the further restructuring announced today," CEO Carl-Henric Svanberg said in a release. "Although first quarter sales are likely to be the low point this year, I want us to be able to generate profit even if sales remain at current levels." The new initiatives will lop another 5 billion kronor out of costs, and 8 billion from cost of sales. Overall, the measures will require an additional 11 billion kronor restructuring charge.
The steps are necessary in a macroeconomic context that is "more uncertain with weaker short-term demand," Ericsson said, predicting industrywide sales of wireless infrastructure will fall more than 10% this year.
Breaking down the first quarter, Ericsson said its flagship network-equipment segment had sales of 24 billion kronor, down 28% from a year ago, reflecting a 31% decline in mobile systems networks. Its cell-phone venture with Sony (SNE:NYSE ADR - news - commentary - research - analysis) shipped 5.4 million units in the period, down 7% from a year ago.
http://www.thestreet.com/_yahoo/markets/stockwatch/10083645.html
Amazing what a CEO and more cost cuts will do.. Hopefully it has turned the corner now... I notice if they cut to 47K employees that is less than 1/2 of a few years ago.... Amazing..
Eric
21 years ago
Ericssson Wins Hutchison Whampoa Denmark 3GSM WCDMA Order
Ericsson has brought some cheer to the ailing network infrastructure market by winning a contract to supply the Danish arm of Hutchison Whampoa Ltd. with third-generation wireless kit.
The deal marks a rare bright spot in a week that has seen both Ericsson and Nokia Corp. cast gloomy shadows over the network vendor market.
Today's deal marks Ericsson’s second win in the Danish 3G market, having already announced plans to supply market leader TDC Tele Danmark A/S with a W-CDMA network [TDC picked Ericsson For 3G]. The remaining two carriers -- Orange Danmark and Telia Danmark -- are yet to announce their choice of vendors, although Pescatore expects Orange to opt for its regular supplier Nokia.
>> Ericsson: 3G & a Danish, Please
Justin Springham
Senior Editor, Europe
Unstrung
04.11.03
http://www.unstrung.com/document.asp?doc_id=31128
LM Ericsson (Nasdaq: ERICY) has brought some cheer to the ailing network infrastructure market by winning a contract to supply the Danish arm of Hutchison Whampoa Ltd. with third-generation wireless kit.
Hi3G Access AB has selected Ericsson as the sole supplier for its W-CDMA network. The W-CDMA air interface is part of the universal mobile telecommunications standard (UMTS), which has been adopted as the European 3G standard. Used with existing Global System for Mobile Communications (GSM) core networks, the air interface can crank up data transfer rates to a maximum of 2 Mbit/s (at least in the lab).
According to IDC’s senior research analyst Paolo Pescatore, the deal is significant in that it proves there may still be rich pickings to be had in the W-CDMA market. “Ericsson is demonstrating that it isn’t all doom and gloom out there and there are still companies to win over,” he comments.
The deal furthers the Swedish vendor's existing ties with Hutchison by securing its third European contract win with the 3G greenfield carrier, following deals with its Swedish and Italian ventures.
Both Ericsson and Hutchison tell Unstrung that their original partnership for 3G rollout in Sweden, announced in June 2001, was a major catalyst for today’s Danish deal. “We were looking for ways to maximize synergies out of the two networks,” says Hutchison spokesman Niclas Lilja. “We can have the same guys working on the rollout in both countries. Working with Ericsson in both countries makes perfect sense for us.”
“Today’s deal is based on our proven performance with the Swedish network,” says ever-humble Ericsson external relations manager, Ole Selchau. “The network will be fully integrated with Hutchison’s Swedish network. We see it as an important contract and a reinforcement of our first-class position globally.”
Neither company was prepared to disclose financial details concerning the deal.
The deal marks a rare bright spot in a week that has seen both Ericsson and Nokia Corp. cast gloomy shadows over the network vendor market. The outgoing Ericsson CEO and president, Kurt Hellström, said Tuesday that demand for wireless network infrastructure will continue to weaken, while the company has also announced a complete restructuring of its corporate management team in an effort to return the business to profitability by the end of the year (see Ericsson: Market Still Waning and Ericsson CEO Names New Team).
Nokia yesterday announced plans to cut 1,800 staff -- over 10 percent of its network division’s workforce -- following the news it would be reporting sales 20 percent lower than originally predicted for the first quarter of this year.
IDC's Pescatore adds that Ericsson’s success in being the sole supplier for both Hutchison’s Swedish and Danish businesses will simplify roaming challenges between the two networks. “Hutchison won’t have to tackle the complex problems of getting the network operational in a multivendor environment. Such a wide customer base will also allow Ericsson to leverage off the economies of scale this will create.”
Today's deal marks Ericsson’s second win in the Danish 3G market, having already announced plans to supply market leader TDC Tele Danmark A/S with a W-CDMA network (see TDC Picks Ericsson For 3G ). The remaining two carriers -- Orange Danmark and Telia Danmark -- are yet to announce their choice of vendors, although Pescatore expects Orange to opt for its regular supplier Nokia.
Ericsson also has the luxury of a relatively relaxed deadline for network deployment. Danish regulator NTA (National IT and Telecom Agency) has given the country’s four 3G licence holders until the end of 2004 to provide 30 percent coverage throughout the country, and another four years to complete 80 percent of the region. <<
- Eric -
Eric
21 years ago
Martyn Warwick on Carl-Henric Svanberg & Ericsson
>> New Ericsson CEO Takes an Axe to Bureaucracy
Martyn Warwick
CommsDay
09/04/03
Carl-Henric Svanberg, the new CEO of Ericsson, the troubled Swedish telecoms equipment manufacturer and vendor took up his post this week. An outsider to the company that, in the past, has been run more like a government department than a commercial enterprise. Mr. Svanberg’s first act is to try to dismantle some of the massive bureaucratic superstructure that makes Ericsson such and unwieldy and slow-moving beast.
Last year, Ericsson came close to collapse as orders fell, sales stagnated and debts mushroomed. The company has quickly to raise SKr 30 billion (approx € 3.7 billion) from disgruntled shareholders to stay liquid and it remains likely that it will still be forced into a new share issue to provide a further cash cushion if, as is being rumoured, prospects do not improve and losses continue.
Analysts and the investment community will at last get some idea as to how Ericsson is doing when the company releases its Q1 2003 results on the 29th of this month.
One of Ericsson’s problems has been institutionalised overmanning and entrenched, bureaucratic work methods and systems. As Carl-Henric Svanberg says, “We are good at inventing products and good at selling our technologies but we are not good at organising workflows. We need to be simpler and clearer”.
Cutting bureaucracy will inevitably mean more redundancies among Ericsson’s staff. In the past, to work for Ericsson was to have a job for life and, although there have been far-reaching job losses in recent months, the attitude amongst many of those still in employment is remarkably complacent given the parlous state of the company.
Svanberg, who has from lock-making Assa-Abloy to loss-making Ericsson, has said that there will have to be job losses but has declined to speculate on how many redundancies may finally be necessary to bring the company back from the brink.
More than 50,00 jobs have gone in the past two years but analysts believe at least a further 10,000 redundancies may be needed. Ericsson currently has about 60,000 employees.
The new CEO unveiled a ‘revamped’ senior management team of 18 members. They are remarkable mainly in that they represent an almost unbroken line of continuity from the old team that was in place under Kurt Hellstrom and before Mr. Svanberg, the new broom, took over. Revolutionary it ain’t.
Oh, and if the new CEO wants to avoid criticism, not to say hooting derision, of his ‘new’ but nonetheless remarkably unchanged hierarchical company structure, he should perhaps reconsider the nomenclature of the post of the newly announced Senior Vice President and Head of Corporate Function, People and Culture. Per-leeze!
One can but assume it refers to what used to be known as ‘”Personnel Director”, who knows? It just sounds so bloody right-on and utterly woolly I wouldn’t be surprised to see Tony Blair rip it off for use in the British Cabinet. <<
Eric
21 years ago
Ericsson's New Corporate Management Team
>> Ericsson presents Corporate Management Team
April 8, 2003
Telecom.paper
New President and CEO Carl-Henric Svanberg announced his Corporate Management Team, effective April 8, 2003.
"The overall objective for the management team is to create a strong and profitable company with focus on technology leadership, high internal efficiency and strong customer relations," says new President and CEO Carl-Henric Svanberg. "The team composition secures that we have the right information for making decisions and quick implementation."
Carl-Henric Svanberg, President and CEO
Per-Arne Sandström, First Executive Vice President and Deputy CEO
Karl-Henrik Sundström, Chief Financial Officer and Executive Vice President
Ragnar Bäck, Executive Vice President, Asia Pacific
Mats Dahlin, Executive Vice President, Europe, Middle East and Africa
Gerhard Weise, Executive Vice President, Americas
Sivert Bergman, Vice President & GM, Transmission & Transport Networks
Mats Granryd, Vice President & General Manager, Supply
Bert Nordberg, Vice President & General Manager, Systems
Åke Persson, Vice President & General Manager, Mobile Systems CDMA
Per Tjernberg, Vice President & General Manager, Sourcing,
Vacant, Vice President & General Manager, Global Services
Carl Olof Blomqvist, Senior Vice President, Legal Affairs
Torbjörn Nilsson, Senior Vice President, Marketing & Strategic BD Development
Björn Olsson, Chief Information Officer
Henry Sténson, Senior Vice President, Corporate Communications
Jan Uddenfeldt, Senior Vice President, Technology
Britt Reigo, Senior Vice President, People & Culture - to be succeeded by Marita Hellberg when she assumes the position as Senior Vice President, Human Resources
###
- Eric -
Eric
21 years ago
FT on Ericsson's Carl-Henric Svanberg
>> 'In 126 Years, Ericsson Has Never Experienced Anything Like This'
Christopher Brown-Humes
Financial times (UK)
April 3 2003
When Carl-Henric Svanberg heard last month that he was going to be Ericsson's new chief executive, the first thing he did was spend SKr100m ($12m) buying shares in the telecommunications equipment group. As he prepares to start this assignment on Tuesday, Mr Svanberg will be hoping his confidence in the group is justified. The shares cost him about SKr6.35 each. So far he has recorded a loss, with the company's shares closing yesterday at SKr5.75.
The company Mr Svanberg is taking over is almost unrecognisable from the one his predecessor, Kurt Hellström, inherited in 1999.
Once the high-flying champion of the Swedish information technology sector and a credible contender to be a leader in the global handset market, Ericsson is now struggling to win back investor confidence. Shares in the world's biggest maker of mobile infrastructure have plunged 96 per cent since March 2000. It lost SKr53bn in 2001 and 2002.
Ericsson's balance sheet was weakened so badly that only a SKr30bn rights issue last year saved it from collapse. A painful restructuring programme, still to be completed, has cost 50,000 jobs, halving the group's workforce.
The woes have been caused by one disaster of the group's own making - its handset operations - and one outside its control - an unprecedented slump in the telecoms equipment market. Ericsson's orders and revenues have shrivelled as mobile phone operators have cut spending because of their cash flow constraints, delaying the roll-out of third-generation services and postponing upgrades to their existing networks. 3G, which allows mobile phone users to send and receive data and images, was expected to drive revenue growth at Ericsson and other equipment suppliers.
Said Mr Hellström in arecent interview with the Financial Times: "Ericsson has been going for 126 years and it has never experienced anything like this."
Few countries depend so much on a single company as Sweden on Ericsson. The equipment maker accounted for 15 per cent of the country's exports in 2000. Last year the figure was just 9 per cent; but Ericsson remains Sweden's largest exporter.
Individuals have suffered, too - and not just those hit by the massive jobs cull that has removed thousands of jobs from cities across the country. Most of the population holds a stake in Ericsson through pension investments, mutual funds or directly held shares. Nearly 1m Swedes - nearly 20 per cent of the working population - hold Ericsson shares.
Above all, national pride has been hurt. Ericsson did more than any other company to give Sweden a lead in mobile telephony and IT, not only because of its own successes in the late 1990s but also because it helped to spawn hundreds of start-ups. The company's swagger in those days was symbolised by Lars Ramqvist, its ebullient former chairman, who threatened to move Ericsson's headquarters to London unless the government took measures to improve the Swedish business climate. "To many Swedes Ericsson and Volvo are the two companies that symbolise Sweden and Swedish manufacturing," says Klas Eklund, chief economist at SEB, one of Sweden's leading banks. With Volvo Cars now part of Ford, Ericsson's importance to the Swedish psyche is even greater.
Swedish disappointment has been inflamed by the success of Nokia, the world's leading maker of mobile phones, in neighbouring Finland. "Many Swedes cannot understand why Nokia is doing so well while Ericsson has had such a difficult time," says Peter Thelin, a partner at Brummer & Partners, a Swedish hedge fund group.
Nokia has shown it understands ordinary consumers in a way that Ericsson failed to do. As an equipment manufacturer, the Swedish group is used to dealing with companies, not consumers. Its phones were over-engineered and ugly and launches were often late; Nokia, by contrast, emphasised design and bringing products to market quickly. After a devastating $2bn loss on the business in 2000, Ericsson combined its handset operations with those of Sony of Japan. One of the reasons was that Sony understood consumers better. But Sony Ericsson is battling to build market share and has yet to make a profit.
It is a measure of Ericsson's difficulties that Mr Svanberg is the fourth CEO in five years. He is the first outsider to take the top job for 60 years and is independent of the two power spheres - Investor, the holding company for the powerful Wallenbergs, and Industrivärden, which is linked to Svenska Handelsbanken - that control Ericsson.
His first task will be to rebuild morale. "By far the most important thing is to encourage what must be a rather demoralised crew," says Sten Westerberg, a senior adviser to Nordea Securities.
There is also a cultural challenge. Ericsson is a technical company, driven and dominated by engineers, who for many years dealt almost exclusively with monopoly state telephone operators. There are those who feel that the group still has not fully adapted to the developments of the last decade - deregulation, privatisation, and the mobile phone revolution - which have created hundreds of new operators.
Mr Svanberg, a former chief executive of Assa Abloy, the world's leading maker of locks, has yet to outline his strategy. Profit is the most important thing, he has said. Ericsson has made a loss for nine consecutive quarters.
Although the company denies that there are any plans for further restructuring, Mr Svanberg is widely expected to implement deeper cuts. The company has already said it aims to cut its annual operating expenses from SKr51bn at the end of 2002 to SKr38bn and be able to break even on revenues of SKr120bn (last year, revenues fell 31 per cent to SKr145.8bn).
Under existing restructuring programmes, employee numbers are forecast to fall below 60,000, compared with 107,000 in early 2001. That would still leave Ericsson with more employees than Nokia, despite having little more than half of the Finnish company's revenues. Nokia has 54,000 employees. In any case, analysts believe the SKr38bn target for operating expenses is demanding and could easily require a further 10,000 jobs to be cut. Ericsson has ruled out fresh fundraising but bankers say it should not be excluded as a possibility.
Mr Svanberg will also have to face larger questions about Ericsson's positioning in the telecoms industry. Among the first issues he will need to handle is whether Ericsson should sell its 50 per cent stake in Sony Ericsson. The joint venture has shown signs that it is increasing its market share (now about 6 per cent) but has yet to make money. Keeping it alive may require further investment: under the terms of the agreement with Sony, Ericsson may be forced to inject another €350m ($380m) into the business by October. Mr Hellström denies that this will be necessary.
Another item on the agenda is whether Ericsson should focus purely on mobile systems - the supply and servicing of base stations, routers and other equipment to mobile operators. That would mean selling its defence and cable activities, which have already been designated as non-core, as well as reviewing the future of its lossmaking fixed line business.
Mr Svanberg will also need to decide whether to deepen or abandon Ericsson's involvement in CDMA, a rival technology to GSM and WCDMA, its third-generation successor. The group now has a market share of 5 per cent in CDMA. Its operations in this area are lossmaking.
Whatever Mr Svanberg decides on these tactical matters, shareholders agree there is one overarching strategic aim. As Anders Nyren, chief executive of Industrivärden, one of Ericsson's two main owners, puts it: "The first challenge is to continue the work which Kurt Hellström started, which is to return Ericsson to profitability."
If Mr Svanberg is lucky, he will have got his timing right. Ericsson insiders insist the equipment market cannot get any weaker. And even in the downturn, the group's market share has held up well. If, as analysts expect, WCDMA eventually becomes the dominant third-generation technology, Ericsson could increase its share further, as it is particularly strong in this segment. The group may also emerge stronger from the downturn than some of its rivals, such as Nortel and Lucent, which have had to dismiss even more people. Even Nokia, which has kept its dominance in handsets, has been badly hit by the downturn in the infrastructure market; this division has plunged into the red.
But will Ericsson ever again be perceived as a growth company? In the late 1990s, profits and sales grew at more than 20 per cent a year. Now Mr Hellström says the goal is to grow faster than the industry average and achieve an operating margin of 10 per cent. But he gives no time-frame.
However, industry trends are not on Mr Svanberg's side. Angela Dean, analyst with Morgan Stanley in London, says there has been a close correlation between Ericsson's growth and the growth in net new mobile phone subscribers around the globe. From 2001, there has been a decline in new subscribers globally; and there is no sign of the trend's being reversed.
The mobile infrastructure market shrank 20 per cent last year and the fall this year could easily be 10 per cent. Ms Dean says: "Of course things would start to look up for Ericsson if data services took off, if operators started to roll out 3G aggressively, if competition forced operators to invest more and people used their phones more. But do I see any signs of this happening any time soon? No."
The continued grim market outlook is undoubtedly the biggest shadow over Mr Svanberg's arrival. Roger Appleyard, credit analyst at ABN Amro in London, says: "Whatever Mr Svanberg's abilities, what he can't do is persuade operators to spend any more money." With analysts predicting another year of losses in 2003, the long-awaited turnaround at Ericsson is still far from certain. <<
- Eric -
Eric
21 years ago
Sony Ericsson Z1010 UMTS/GSM-GPRS Mobile Phone Released
Pictures and general detail (no specs) here:
http://www.sonyericsson.com/3gsmworldcongress/
>> Sony Ericsson Unveils Its First Commercial 3G Phone
Sony Ericsson
Press Release
February 17, 2003
Today, at the 3GSM World Congress in Cannes, France, Sony Ericsson unveiled the Z1010 dual mode UMTS/GSM-GPRS phone.
The clamshell Z1010 is designed to give consumers the best possible experience of imaging, messaging and connectivity applications using 3G. Optimised for video conferencing and video applications, it features two inbuilt cameras, two displays, video support and a host of other features.
This fully featured dual mode UMTS/GSM-GPRS mobile phone will be Sony Ericsson's first in a line of 3G-products made available for the consumer market. It is demonstrated featuring video calls and streaming video applications, in a live 3G network in Cannes. The Z1010 focuses on easy-to-use multimedia messaging, taking advantage of the capacity and capability of 3G networks. For this, the clamshell Z1010 features two displays and two cameras. The main display is a full graphic 65K colour display and a grey scale status display is located on the front panel of the phone, for easy access to information when the phone is closed.
The integrated camera is easy to use for capturing still images and video, which can then be sent as MMS or e-mail. There is also a dedicated video call camera placed below the main display, so while the camera is filming the user, he or she can watch the other party in the display. To be able to easily move information between the Z1010 and other devices, as well as for memory extension, the phone features Sony Memory Stick Duo(TM) technology which makes it easy to transfer images, video clips and music files to and from the phone.
"We are showing this product now to support operators' commercial 3G launch programmes and to inspire users and application developers with full 3G functionality support. 2003 will be the year when the industry will have to focus heavily on interoperability and standardisation in order to launch attractive 3G services and applications," says Jan Wareby, Corporate Executive VP, Head of Sales and Marketing at Sony Ericsson. "Supporting this process is definitely one of Sony Ericsson's strengths thanks to our Ericsson heritage, closeness to the operators and the fact that we were the first ones to carry out hand-over between GSM and 3G in September 2002," says Mr Wareby.
The Z1010 is shipping to operators already for interoperability testing (IOT). Upon completion of IOT during Q2, there will be full commercial availability to support operator launch programmes during the second half of 2003. Sony Ericsson has been shipping UMTS network test phones to selected operator customers since the middle of 2002 and in September announced, together with Ericsson, the first live, dual mode UMTS/GSM calls with seamless handover between the two modes. The demonstration, which included high data rate in live UMTS/GSM networks, was done on Sony Ericsson test units based on a commercial platform developed by Ericsson Mobile Platforms and it is also on this platform that the Z1010 is based.
Z1010 product features:
Imaging Entertainment
Video Call Audio and video:
TwinCam MPEG 4, H.263, MP3, ACC, AMR
VGA for still UMTS 384kbit downlink
QCIF for video Polyphonic Sound 24 voices
UMTS 64kbits uplink WAP2.0
GPRS 4+2 Java MIDP 1.0
Dual displays:
176x220 pixels/65 536 colors
101x80 pixels/4-level grey scale
.
Messaging Connectivity
SMS/EMS/MMS/MMS video Bluetooth long range
Wireless village Sony Memory stick Duo(TM), 16MB
e-mail included
USB true connector - 12Mbit
IrDA
----------------------------------------------------------------------
- Eric -
Eric
21 years ago
re: GC82 EDGE PC Card from Sony Ericsson & AWS
>> Sony Ericsson Unveils Its First EDGE-Product and Announces Strategic Alliance With AT&T Wireless
Sony Ericsson
AT&T Wireless
London
Business Wire
February 17, 2003
Sony Ericsson today further enhanced its global connectivity offerings with the introduction of its GC82 EDGE PC Card for Dual Band 850/1900 MHz GSM networks in North America.
The GC82 EDGE PC Card will provide fast and easy wireless access to Internet and corporate intranet sites for laptop users.
Sony Ericsson also announced a strategic alliance with AT&T Wireless (AWS) to support the carrier's roll-out of EDGE services in the United States. EDGE products and services will provide heavy data users and mobile professionals with the fastest wireless data speeds available.
The deployment of EDGE in the U.S. marks an early step in taking advantage of real 3G networks, offering efficient and cost-effective mobile wireless services. The GC82 fits in the PCMCIA-slot of any laptop, providing a plug and play, fast mobile connectivity solution.
Combining AT&T Wireless' leading position in wireless services, strong distribution network and expertise in mobile computing with Sony Ericsson's leadership in providing mobile connectivity products, the strategic alliance will enable the companies to offer an attractive solution to corporate organizations, i.e. operators, PC-Vendors and mobile professionals. Under the agreement, the GC82 EDGE PC Card will be jointly marketed and distributed by both companies.
"Our deployment of EDGE will give our company the first true 3G network. The higher speeds this network delivers will enhance our already strong portfolio of data services," said Rod Nelson, chief technology officer for AT&T Wireless. "The EDGE PC card from Sony Ericsson will enable laptops to take advantage of the faster network speed, particularly for enterprise applications. We are pleased to be partnering with Sony Ericsson for PC card products, ranging from the current GPRS products to the new GC82."
"This is an important step for us in expanding our offering of fast wireless connectivity and mobile computing solutions to the North American market, and the partnership with AWS ensures us that we can reach corporate customers and consumers in an efficient way", says Anders Franzen, Corporate Vice President Machine-To-Machine Com at Sony Ericsson.
The two companies are working on a number of initiatives to deliver the benefits of higher-speed wireless services to customers. For example, in addition to the third quarter release of the GC82, Sony Ericsson currently offers the GC75 GPRS PC Card Modem, which is supported and certified by AT&T Wireless for sale in the U.S.
EDGE was developed to enable mobile transmission of large amounts of data at high speeds, delivering up to three times faster speeds than GPRS. This means greatly improved downloading speeds, which are very useful for wirelessly downloading e-mails with large attachments.
About AT&T Wireless
AT&T Wireless (NYSE: AWE) is the second-largest wireless carrier, based on revenues, in the United States. With 20.859 million subscribers, and full-year 2002 revenues exceeding $15.6 billion, AT&T Wireless will continue delivering advanced high-quality mobile wireless communications services, voice or data, to businesses and consumers, in the U.S. and internationally. For more information, please visit us at www.attwireless.com.
About Sony Ericsson Mobile Communications AB
Sony Ericsson Mobile Communications AB offers mobile communications products for people who appreciate the possibilities of powerful technology. Established in 2001 by Telefonaktiebolaget LM Ericsson (NASDAQ: ERICY) and Sony Corporation (NYSE: SNE), the joint venture continues to build on the success of its two innovative parent companies. Sony Ericsson creates value for its operator customers by bringing new ways of using multimedia communications while mobile. The company's management is based in London, and has 4,000 employees across the globe working on research, development, design, sales, marketing, distribution and support. <<
- Eric -
Eric
21 years ago
re: Ericsson dual-mode WCDMA/GSM milestone
* Standard compliant video telephony on the 64 kb/s circuit switch bearer using state-of-the-art 15 video frames per second working end-to-end between two test phones
* Video streaming on the 384 kb/s packet data bearer.
* Power consumption of the dual-mode platform is very competitive and is currently comparable with today's best GSM phones.
>> Ericsson Demonstrates Mobile Video Call In A Fully Integrated Dual-Mode 3G Platform
Ericsson News Release
02/11/2003
Ericsson Mobile Platforms today announced a major new milestone achievement within its 3G development. The company now offers solutions for personal video telephony working end-to-end on a fully integrated dual-mode WCDMA/GSM platform, using a cost-effective small-sized solution.
Ericsson now demonstrates standard compliant video telephony on the 64 kb/s circuit switch bearer using state-of-the-art 15 video frames per second working end-to-end between two test phones as well as video streaming on the 384 kb/s packet data bearer.
This demonstration further emphasizes the leadership of Ericsson's mobile platform solution, which is capable of full WCDMA and GSM/GPRS dual-mode, including handover and multimedia functionality. The power consumption of the dual-mode platform is very competitive and is currently comparable with today's best GSM phones.
"Showing video telephony on a commercial, cost-effective dual-mode platform is a key milestone for our development and gives enhanced confidence to the whole UMTS industry to launch services and products in line with market expectations," says Tord Wingren, President of Ericsson Mobile Platforms.
Video telephony is perceived by operators and end-users as essential to the new and more personal 3G services. In addition to voice, it will put people in closer contact while talking.
"The need for video telephony in mobile phones primarily involves situations where you can show your surroundings and share experiences instead of having to verbalize everything, both for private and business purposes," adds Tord Wingren.
During the past year, Ericsson Mobile Platforms has consistently proven its leadership within 3G development by demonstrating WCDMA voice and high data rate calls as well as video functionality in live networks. During the 3GSM World Congress in Cannes, Ericsson will be showing full video functionality and interoperability with pre-commercial phones using platforms from Ericsson Mobile Platforms.
"It is extremely important for our customers to get our platform demonstrated in fully integrated small-sized handsets, to prepare for the final application integration and related tests prior to the market launch. We can offer mobile phone manufacturers a complete, robust, end-to-end-proven WCDMA/GSM dual-mode platform," says Tord Wingren. <<
- Eric -
extelecom
21 years ago
On November 6, the Swedish police have taken three individuals into
custody, suspected of espionage or corporate espionage. The three
individuals are employed by or have been employed by Ericsson.
The three individuals are suspected to have handed over top secret
information to a foreign power.
"With regard to the investigation, we cannot disclose what kind of
information that has been handed over," says Henry Sténson, Senior
Vice President, Communications, at Ericsson. "Our opinion today is
that the damages are limited. Thanks to the timely handling, the
deliveries were stopped. Besides, the three individuals did not hold
any key positions."
Ericsson is shaping the future of Mobile and Broadband Internet
communications through its continuous technology leadership.
Providing innovative solutions in more than 140 countries, Ericsson
is helping to create the most powerful communication companies in the
world.
FOR FURTHER INFORMATION, PLEASE CONTACT
Henry Sténson, Senior Vice President, Communications, Ericsson
Phone: +46 8 719 40 44, e-mail henry.stenson@lme.ericsson.se
et
Eric
21 years ago
Ericsson in China
New appointment for Sony Ericsson below and also BW's comments on Ericsson in China.
Ericsson really needs to revitalize in China. Under the best of circumstances non-Chinese wirelesscos (MOT, NOK, ALA, SI, et al) have to grit it out there but Ericsson really needs to have a solid short, medium, long term strategy there.
>> China - Sony Ericsson appoints Gunilla Nordstrom
November 1, 2002
Financial Times Ltd.
10/31/2002
Sony Ericsson (Japan/Sweden) has appointed Gunilla Nordstrom to take over its operations in China. Nordstrom has been hand-picked by Katsumi Ihara, Sony Ericsson's Japanese managing director after she was successful in Chile. Nordstrom has been appointed to raise sales at Sony Ericsson and build up the firm's brand name. Competition in China is stiff, with over 40 mobile phone makers competing for market share. Nordstrom will take over an organisation of 85 people.
>> Ericsson in China: From Cool to Cold
Bruce Einhorn
Business Week Online
October 30, 2002
http://wireless.newsfactor.com/perl/story/19819.html
The most obvious problem has been the collapse of Ericsson's handset market share. In the mid- to late-'90s, the company was one of the leaders among Chinese consumers. Today, it is barely on the radar screen.
For Ericsson (Nasdaq: ERICY) and other wireless giants, China was supposed to be the one bright spot in a gloomy landscape. It has more mobile-phones users than any other country in the world -- the most recent total is upward of 190 million. And the Chinese market is still growing, with about 5 million mobile subscribers signing up each month.
Yet as CEO Kurt Hellstrom and other Ericsson executives try to reverse the company's sharp slide (see BW Int'l Cover Story, 11/04/02, "Saving Ericsson"), they're suffering disappointing setbacks in the Middle Kingdom. "I don't think there has been a worse time for Ericsson in the China market," says Craig Watts, an analyst with Norson Telecom Consulting in Beijing.
It might be tempting to dismiss Ericsson's China problem as unique to the Swedish company, as yet another sign of its failure to keep up with the times. But the difficulties it faces are shared by other, more successful companies, too -- though Ericsson's woes are more severe. As the competition in the China market gets more intense, executives from Nokia, Motorola, Siemens and Samsung would be wise to look at, and learn from, Ericsson's China experience.
Lost Leadership
The most obvious problem has been the collapse of Ericsson's handset market share. In the mid- to late-'90s, the company was one of the leaders among Chinese consumers, along with Motorola and Nokia. Today, Ericsson is barely on the radar screen. At the end of 2001, it had about 5% of the market, and by the middle of 2002, that tumbled below 2%, according to Watts. The Swedish outfit not only trails Motorola and Nokia, but also Siemens and Samsung.
Chinese buyers once considered Ericsson handsets cool. It and other foreign companies didn't have to worry much about domestic rivals, since Chinese handset makers weren't competitive. But Ericsson didn't keep up with the latest fashions, and consumers came to see its products as ho-hum.
Moreover, the local players are no longer playing dead. Indeed, Chinese rivals increasingly are turning out stylish and inexpensive phones. One sign of the times: Ericsson has even fallen behind China's TCL, the up-and-coming electronics company from southern Guangdong province that has recently been making a major push to take market share (see BW Cover Story, 10/28/02, "High Tech in China").
Too Pricey?
Of course, it hasn't helped that the handset joint venture Ericsson formed with Sony (NYSE: SNE) ran into delays in entering the Chinese market. In August, Sony Ericsson finally received Beijing's approval to operate on the mainland. Now it's trying to make up for lost time by selling fancy new handsets with color screens that can handle multimedia messaging services, which allow users to send not just black-and-white text messages to each other, but also color pictures.
Ericsson's Beijing-based spokesperson declines to reveal how Sony Ericsson's sales have been doing since the summer launch. But the price tag is an eye-popper. The T68ie model sells for just under $400, which is a lot of money for a handset in any market, let alone in China.
Ericsson still has a commanding position in China's cellular-equipment market. It had a 31% share of the global system for mobile communication (GSM) equipment market in the first half of 2002, which translates into $434 million in sales. Last year, Ericsson had 25% of the market, but the overall market was hotter, so last year's 25% meant $1.5 billion in sales.
Local Competition
Yet here, too, Ericsson seems to be losing momentum. In the mid-'90s, it was an early mover and well-positioned. "Basically, the market belonged to them," says Watts. "They just got in here with more muscle, and the market was theirs."
China has had a fundamental change, however. Local equipment manufacturers, once sideline watchers, are now players. Companies such as Huawei Technologies and ZTE, each a private-sector equipment maker based in the southern city of Shenzhen, have become fierce rivals (see BW, 10/28/02, "High Tech in China"), and that means that Ericsson is steadily losing ground.
"We have just seen an erosion," says Watts. "The domestic makers are on their heels and are a lot cheaper." Ericsson is still winning contracts -- it just got a $150 million deal from China Unicom, for instance -- but the competition is much stiffer.
Whether it's TCL selling cheaper handsets or ZTE selling cheaper base stations, Chinese companies are making their bid to take command of the Chinese market from foreigners such as Ericsson. That means CEO Hellstrom has his hands full -- north, south, east and west -- as he tries to turn around Ericsson's fortunes. <<
- Eric -
ergo sum
22 years ago
WI FI Anyone following this story
Agere Systems and Ericsson are teaming up to offer a package of products and services intended to help Internet service providers cultivate a burgeoning wireless technology.
The new package involves the 802.11b standard, also known as Wi-Fi. Wi-Fi technology allows wireless Internet access usually within a radius of approximately 300 feet around a hub. The products and services from Agere and Ericsson will allow service providers to integrate user authentication and billing technology into their hubs, giving mobile users the ability to roam the network.
http://news.com.com/2100-1033-963166.html
Communications equipment maker Proxim became the latest company to sell high-powered Wi-Fi networks that travel long distances, essentially providing buyers with an "ISP in a box," the company's Chief Executive, Jonathan Zakin, said this week.
These versions of wireless networks using the Wi-Fi, or 802.11b, standard create a wireless zone of up to 12 miles long, far beyond the usual 300-foot-radius range that Wi-Fi typically achieves, Zakin said.
Overkill for use inside a home, where most Wi-Fi networks are now found, the long-range Wi-Fi gear from Proxim and others is meant for small Web service providers. It lets them beam long-range signals outside, particularly to sell broadband access in rural areas where DSL (digital subscriber lines) or cable broadband service haven't reached, Zakin said.
http://news.com.com/2100-1033-959924.html
Intel plans to invest $150 million in wireless start-ups to help accelerate the worldwide acceptance of Wi-Fi.
Error! Hyperlink reference not valid.
Error! Hyperlink reference not valid.Wi-Fi, also known as 802.11, is emerging as the saving grace in a dour computer market. The technology lets anyone with a desktop, notebook or cell phone create a high-speed wireless link to the Internet or corporate networks. Demand is expected to increase substantially, and telecom carriers, hardware manufacturers and chipmakers are all crafting products and services for the market.
http://news.com.com/2100-1033-962809.html
Eric
22 years ago
Ericsson Scores with WCDMA and cdma2000
>> Ericsson, China Unicom Sign Contracts
October 21, 2002
Stockholm
Dow Jones
L.M. Ericsson Telephone Co. received a $150 million contract from China Unicom Ltd. (CHU) to upgrade its wireless network systems.
In a press release Monday, Ericsson also said it expanded its original contracts with China Unicom, which it received last year.
Nanjing Ericsson Panda Communications Co., Ericsson's joint venture with China, will immediately begin to deploy CDMA2000 networks to replace the cdmaOne networks currently in use. The upgrade should be completed by the end of 2002.
The newer CDMA systems are currently installed in China's Sichuan province, with more than 10,000 customers.
Earlier Monday, Nortel Networks (NT) said it received a $280 million contract from China Unicom for similar network infrastructure equipment, and other communications companies are expected to announce similar deals.
On Friday, Ericsson reported a $597.5 million third-quarter loss, with sales dropping 29% to $3.59 billion. The company said its mobile sales for the year could fall more than 20%.
Ericsson's American Depositary shares recently traded at 67 cents on the Nasdaq market, up 5 cents, or 8.1%, on Nasdaq market composite volume of 26.1 million shares. Average daily volume is 32.6 million shares. <<
>> Ericsson Gets New 3G Order From Japan's J-Phone
October 21, 2002
Stockholm
Dow Jones
Telefon AB LM Ericsson said Monday that it has received a further order for third-generation network equipment from Japanese mobile telecommunications operator J-Phone.
Ericsson will supply its 3G macro base stations as well as its newly developed 3G micro base stations, which are designed for urban areas and enclosed spaces such as subways.
No financial details were disclosed. J-Phone began its 3G trial service June 30 using a network supplied by Ericsson. <<
- Eric -
Eric
22 years ago
ERICY & ERICD
>> Ericsson's Changes ADS Ratio To Stay In Nasdaq
Timo Poropudas
Nordic Wireless Watch
October 18, 2002
Ericsson will execute a 1-for-10-ratio change for its American Depositary Shares, effective Oct. 23. The change will be made in an effort to meet requirements for listing on the Nasdaq National Market. The telecom equipment giant's ADSs closed Thursday at 54 cents, the 59th-consecutive session they closed below the required one-dollar minimum price.
After the change, the ADSs will temporarily trade under the interim symbol of "ERICD" for a period of 20 days to assist in making investors aware of the ratio change. Thereafter, the symbol will revert to the original "ERICY" trading symbol.
Ericsson Exits French, German And Swiss Stock Exchanges
Ericsson will exit from three European stock exchanges where the trading volumes are minuscule. The Ericsson board has authorized Kurt Hellström, the company CEO, to execute de-listing of the Ericsson B-share from Euronext (Paris), the German Stock Exchanges (Düsseldorf, Frankfurt and Hamburg) and the Swiss Exchange.
"Today, more than 99 percent of trading in Ericsson is on the OM Stockholmsbörsen, Nasdaq and the London Stock Exchange. In France, Germany and Switzerland the trading volumes are insignificant and do not justify the costs associated with the listings," Ericsson press release states.
The de-listing process begins immediately, but the exit times are expected to differ for each exchange. <<
- Eric -
Eric
22 years ago
re: Ericsson Q3
Ouch! Ouch! Ouch!
>> Grim Year Gets Even Worse for Ericsson
18/10/02
Martyn Warwick
CommsDay
Just a day after Finland’s Nokia reported that it had managed to triple its profits, its southern neighbour and rival, the battered and beleaguered Ericsson of Sweden, the world’s biggest manufacturer of mobile telecoms equipment, revealed continuing and widening losses and again revised its sales forecasts even further downwards.
The latest figures indicate that the company expects sales of its mobile telecoms systems to be down by at least 20% on last year. In July, Ericsson had announced a revised sales forecast that said sales would fall by 15%.
The company’s Q3 results show that it lost 3.9 billion Swedish kronor in the three months to the end of September, far and away below analyst’s expectations. Sales for the quarter were 33.5 billion kronor. During the same period last year they were 54.5 billion kronor. To make matters worse, the company also had to account for a one-off charge of 4.2 billion kronor charge related to its redundancy programme.
In a masterly example of gloomy Scandinavian prognostication, Ericsson’s CEO, Kurt Hellstrom, said, “ In the near-term, the outlook continues to be uncertain.”
For the industry in general that’s true; for the company, it’s a fjord-sized understatement.
Ericsson is in deep trouble. It has been conserving cash and slashing jobs, (its workforce by the end of next year will be under 60,000. Last year that number was 107,000) but is struggling to stay abreast of technology trends and to keep up with rivals such as Nokia and Samsung.
The company also warned that the mobile network equipment market faces “significantly more” erosion than the 20% originally predicted for 2002. Indeed, the only semi- bright spot (if it can even be described as such) in the all-pervading darkness is that Ericsson believes that the market will not decline as much next year as it has this and will, sometime, begin to stabilise at a lower level (than what? – one might ask).
Ericsson shares fell back by 9.9% as the bad news sank in.
Urban Ekelund, a leading analyst with Redeye and an expert on Scandinavian and Nordic telecoms commented, “Almost everything in the [Ericsson] report is worse than expected, especially orders. The only positive aspect is that cost cutting is better than expected.”
Another analyst, Helena Nordman-Knutson with the Ohman brokerage in Stockholm said, “The orders are a nightmare. We expected them to be bad, but not this bad, Their sales are in line with expectations but the fact is that there’s not much of a future with these levels of orders.”
And the order situation is critical. They are down a massive 46% year-on-year in the quarter. Ericsson says the main cause of the huge drop has been a series of cancellations for 3G mobile technology and handsets, mainly on the part of Quam and the troubled German mobile operator MobilCom.
Ericsson went to the market only last month and managed to raise US$3.2 billion in a rights issue. That route to shoring up its balance sheet will not be available again any time in the near future and it now seems that Ericsson’s only option is to continue to cut costs, staff and to sell off non-core assets (of which precious few are left).
In essence, the Ericsson’s future is in the hands of its customers. If the operators don’t start investing in new equipment sometime during the next year to 18 months, we could actually see one of the worlds biggest and most important telecoms sector companies go down the tubes. We all want the upturn; Ericsson needs it more than many of its competitors put together. <<
- Eric -
Eric
22 years ago
The Innevitable Q3 Warning
* The company insisted it was not warning about profits
* Ericsson insisted its competitive position was strong and that it was "among the most liquid and well-capitalised companies in the industry."
>> Ericsson Warns Of Sales And Orders Fall
Christopher Brown-Humes
Stockholm
Financial Times
September 30 2002
The crisis at Ericsson deepened on Monday when the Swedish telecoms equipment maker warned that it was facing a further downturn in sales and orders.
The group's B shares plunged 14 per cent to SKr3.37, a ten year low and below the recent deeply-discounted rights issue price of SKr3.8. At their peak in March 2000 the shares stood at SKr230.
Ericsson warned sales, and particularly orders, would be below second quarter levels when they totalled SKr38.5bn ($4.15bn) and SKr35.3bn respectively, but it did not quantify the likely extent of the fall. The second figures were more than 30 per cent below the levels achieved in the same 2001 period.
The company insisted it was not warning about profits, but its comments served as a reminder that the equipment market is still deteriorating rather than stabilising.
Ericsson said its position was no different to other telecom equipment suppliers as the entire industry was facing a drought in orders due to spending cutbacks by debt-strapped telecom operators.
Last week Canada's Nortel Networks, one of Ericsson's main rivals, cut its third quarter revenue outlook, adding to gloomy market assessments already given by Nokia, Lucent and Alcatel.
"The market remains uncertain with few signs of stabilizing in the near term," Ericsson said.
The orders drought has been particularly acute in western Europe, due to the huge sums paid by many operators for 3G licences, but there has been a slow-down even in countries like China, where subscriber growth is still rising strongly.
Ericsson insisted its competitive position was strong and that it was "among the most liquid and well-capitalised companies in the industry."
It has an extensive restructuring programme underway to bring costs down to a level at which it can break even on annual sales of SKr120bn.
"We believe we have sufficient resources to fund our restructuring actions and cover our losses until we return to profit sometime during 2003," it said.
But, despite the $3bn rights proceeds, analysts continue to question Ericsson's financial strength, saying the funds will be swallowed by debt repayment, restructuring charges, and vendor financing commitments. They believe the company could be forced to consider a new share issue or asset sales next year, if the market situation does not improve.
Analysts expect Ericsson to make a SKr24.5bn loss this year. <<
- Eric -
Eric
22 years ago
Reverse Spit
>> Ericsson, Nortel reverse stock splits may prompt others
30/09/02
CommsDay Asia
The Swedish telecoms equipment vendor Ericsson is in discussions with the US NASDAQ stock exchange whereby it would become compliant with listing rules by hiking the number of shares in its American Depository Receipts. The NASDAQ requires such a move should the value of equity listed on the exchange remain below US$1 for more than 30 days. Ericsson’s shares actually fell below that level in late July.
Ericsson shares have lost more than 90% of their value since January this year and reverse stock splits are generally regarded by the market as as very bad news indeed.
However, Enskilda analyst Mats Nystrom proffered some support for the plan. “Nobody seriously expected that Ericsson would be delisted from NASDAQ, but it is positive news in the sense that they are reducing the uncertainty about what is going to happen,” he said.
Ericsson’s rival vendor, Nortel Networks of Canada announced plans for a reverse share split on Wednesday of last week at the same time as slashing its sales target for the second time in two months, this time to 15% below second-quarter’s $2.77 billion.
Pending shareholder approval, Nortel will now reduce its number of shares with what some analysts say may be a one-for-20 or one-for-40 consolidation.
“This is an extremely aggressive reverse stock split,” said Lehman Brothers analyst Steve Levy. “These are extreme times and they call for very extreme measures.” Nortel’s stock hit a 20-year-low in trading on the news.
Of course, in current trading conditions Ericsson and Nortel are not alone in their misery. The equipment vendor, Sonus Networks, facing its own NASDAQ delisting warning, said it is considering a reverse stock split, while even the mighty US carrier AT&T Corp. was forced to announce plans for a one-for-five reverse split to be introduced later this year.
Desperate times call for desperate measures sure enough, but neither analysts nor observers are particularly impressed by current industry tactics.
Joanna Makris, a senior telecoms analyst at Adams, Harkness & Hills commented, “Historically, reverse splits don’t work. The perception is that the stock is going to drift right back down to where it was.” <<
- Eric -
Trade smarter, not harder: Unleash your inner pro with our toolkit and live discussions.
Hot Features
Premium
