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Technology Stocks : Ericsson overlook? -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (4990)	4/22/2002 12:19:02 PM
From: Jim Oravetz	Respond to of 5390

Ericsson Issues Profit Warning, Plans to Cut 20% of Work Force DOW JONES NEWSWIRES STOCKHOLM -- Telefon AB L.M. Ericsson Monday warned it wouldn't return to profitability until sometime in 2003, as it posted a first-quarter net loss on sharply lower sales and announced it will cut 20% of its staff over the next two years. The Swedish company, the world's largest manufacturer of equipment used in mobile-telephone networks, reported a net loss of 2.97 billion Swedish kronor ($289.2 million or €324.9 million), compared with a net profit of 424 million kronor for the first quarter of 2001, which was aided by a capital gain of 5.5 billion kronor. It said it expects to cut up to 17,000 more jobs by the end of 2003, reducing its work force to around 65,000. About 7,000 of the 17,000 jobs losses will likely come this year. "What we see is a prolonged, lower-demand situation," Ericsson Chief Executive Kurt Hellstroem said. "We don't see any uptick in the near future. We haven't seen any signs that it is getting worse. But the issue is that we don't really see a turnaround," he said. The company also announced it plans a rights offering of 30 billion Swedish kronor this year. The company's shares fell 23% to 27.80 kronor in trading in Stockholm, after closing at 35.90 kronor Friday. Ericsson said it had sales of 36.97 billion kronor for the first quarter, down 34% from 55.93 billion kronor from a year earlier. The company said its return to profitability had been delayed by the continuing weak conditions in the global mobile-telecommunications infrastructure market. It now expects wireless-industry sales to be down more than 10% this year; it had previously forecast industry sales would be flat to 10% below 2001's total. Systems sales account for around 90% of Ericsson's total revenue. Ericsson subsequently spun off its mobile-phone operations into a joint venture with Sony Corp. On a pro forma basis, excluding those operations from the first-quarter 2001 figures, Ericsson's first-quarter sales were down 26% from 2001. Orders in first-quarter 2002 fell 40% to 41.9 billion kronor from 69.3 billion kronor in the same period a year ago. Ericsson said the 2001 results in its report had been restated to reflect changes in Swedish accounting principles this year. The job cuts -- 7,000 this year and up to 10,000 more next year -- are part of Ericsson's plans to cut its cost base by a further 10 billion kronor this year and an additional 10 billion kronor next year. It said it would take a restructuring charge of 8.5 billion kronor this year and two billion kronor in 2003. Ericsson eliminated or outsourced about 20,000 jobs in 2001, as part of its cost-cutting efforts and the decision to spin out the loss-making mobile-phone operations. On a pretax basis, Ericsson had a loss of 5.41 billion kronor for the first quarter. It had a pretax loss of 4.89 billion kronor in the year-earlier quarter, excluding the capital gain. It had forecast a pretax loss of around five billion kronor, with sales of around 40 billion kronor.

To: elmatador who wrote (4990)	5/5/2002 5:50:44 PM
From: Eric L	Read Replies (1) \| Respond to of 5390

re: Vodafone Germany MMS & Ericsson MMSC Great way to introduce MMS service ... >> Vodafone Germany Launches Free MMS Simon Buckingham Mobile Streams 22 April 2002 Vodafone Germany today launched MMS services, with an initial 3 month free trial to kickstart the service. Additionally, until the end of July customers will automatically receive a free multimedia news service. The MMS service is called "Vodafone-MultimediaMessagingService" The network is highlighting the Ericsson T68i with CommuniCam as the first MMS phone. The Vodafone Germany service was the first to be powered by Ericsson MMSC. << - Eric -