Profits at the wireless-network maker beat expectations as operators like AT&T invest in its wireless networks.
Shares of Ericsson shot up Friday after the Swedish wireless-network provider reported profits and sales that beat expectations, echoing similarly-positive number from fellow European tech giant Nokia on Thursday.
Net profit came in at 3.6 billion Swedish kronor ($542 million), higher than analysts' consensus and up fourfold from the 810 million kronor it made last year. Its shares were up 5.9% in European afternoon trading on Friday.
The company saw its biggest sales jump--by 223%--in the United States, where operators like AT&T spent more money on Ericsson's technology to provide data access at higher speeds for people with mobile devices like smartphones and netbooks.
The company said that mobile broadband continued to grow in the quarter, especially in North America and Japan, while voice-related sales were slow. It added that demand for 2G capacity expansion in China had returned during the quarter and that India had "gradually improved" with 2G deliveries. "Western Europe is still slow," it added.
The industry-wide component shortage that has hit high-tech device makers such as Nokia also hit Ericsson's sales. "Our sales in the quarter continued to be impacted by the ongoing portfolio transition," the company said. "We also experienced mix variations and more intense competition in China."
(C) Forbes
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