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To: Proud_Infidel who wrote (38565)	10/20/2000 9:55:39 AM
From: Proud_Infidel	Respond to of 70976

Ericsson to accelerate 3G products, reorganizes mobile phone production Semiconductor Business News (10/20/00, 09:45:51 AM EDT) STOCKHOLM, Sweden -- LM Ericsson here today promised to roll out third-generation (3G) wireless systems at a faster pace in the coming year, and it announced a reorganization of mobile phone production to cut loses in low-cost cellular phones. The Swedish telecommunications giant also reported total revenues grew 69% in the third quarter, and profits were up 69% from a year ago. Ericsson president Kurt Hellstrom reported that the company's results in mobile systems were "stronger than the market sales increase of 44%" in the third quarter, but he also said the company was taking aggressive action to restore profits in the consumer products segment. As part of a "Back to Profit" program, Ericsson is transferring mobile phone production from Sweden and the United States to low-cost factories in Asia, Latin America and Eastern Europe, he said. Due to severe component shortages from a key supplier--Philips Semiconductors--and expected pricing competition in the fourth quarter, along with restructuring charges, Ericsson said it anticipates a loss of 16 billion Swedish kronor ($1.6 billion) in consumer products for the full year in 2000. Ericsson's cell phone shipments were cut short after Philips suffered a wafer fab fire in Albuquerque, N.M., last March. The blaze and cleanup of the plant shut down an 8-inch BiCMOS frontend for nearly six weeks, causing delays in shipments of custom devices to Ericsson during the second and third quarter. Ericsson said it expects to see continued strong growth in 2G mobile systems, but it is also gearing up for an acceleration of 3G products. In third-generation mobile systems, Ericsson claims it has been named in 15 of 20 announced 3G agreements for networks worldwide. Ericsson also said by the end of 2001 about ninety 3G licenses will be issued to operators around the world, beginning in Japan and followed by an intensive build-out in Europe. Consequently, Ericsson has "intensified preparations" for 3G rollout, which will begin later this year, the company said. For the third quarter, Ericsson's net revenues reached 67.3 billion kronor ($6.7 billion) compared to 49.3 billion kronor ($4.9 billion) in the same period last year. Ericsson's net income grew 69% to 4.4 billion kronor ($440 million) vs. 2.6 billion kronor ($260 million) last year in the period ended Sept. 30.