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Ericsson first quarter report 2012

STOCKHOLM, SWEDEN — (Marketwire) — 04/25/12 —

* Sales decreased -4% YoY, impacted by an expected major decline in CDMA
sales
as well as lower operator network spending in regions with macro-economic
or
political uncertainty. Global Services and consolidation of Telcordia
contributed positively.

* The underlying business mix, with higher share of coverage and network
modernization projects than capacity projects, was unchanged. This mix is
expected to prevail short-term.

* Operating margin 5.5% excl. gain from Sony Ericsson divestment and loss
in
ST-Ericsson.

* Net income SEK 8.8 b. up 116% YoY, impacted by gain from Sony Ericsson
divestment of SEK 7.7 b and loss in ST-Ericsson.

* EPS diluted SEK 2.76 (1.27), driven by gain from Sony Ericsson
divestment.
EPS Non-IFRS and excluding Sony Ericsson gain SEK 0.77 (1.61).

COMMENTS FROM HANS VESTBERG, PRESIDENT AND CEO

“Sales of high-performance mobile broadband developed well in North
America,
Japan and Korea, while other regions such as Europe including Russia, parts
of
Middle East and India were weaker,” says Hans Vestberg, President and CEO
of
Ericsson (NASDAQ: ERIC). “CDMA continued its expected decline in the
transition
to LTE. Our services business showed continued momentum where especially
Professional Services developed favorably. Support Solutions (former
Multimedia)
increased organic sales.

In the quarter, we took important steps in our strategy execution. The
announced
acquisition of BelAir adds WiFi capabilities to our hetnet portfolio and by
acquiring Technicolor-s Broadcast Services Division we have strengthened
our
position in media and broadcasting services, targeting a leadership
position in
Europe. With the completed divestment of Sony Ericsson, we have left the
consumer part of the handset business in order to focus on enabling
connectivity
for all devices, handsets and beyond. Last year, we gained market share in
our
core businesses and continued to build a strong LTE position where we have
more
than 60% market share.

Late 2010, we took a strategic decision to increase our market share in
Europe
when operators started to modernize their networks and replacing old
infrastructure with new multi-standard radio base stations. This, together
with
the business mix with more coverage than capacity projects, has, as
expected,
had a negative impact on gross margin YoY and is expected to prevail
short-term.

Our joint venture ST-Ericsson has launched a revised strategy and actions
to
reduce its break-even point. We remain confident that ST-Ericsson has a
strategic position in the industry to enable the device ecosystem,”
concludes
Vestberg.

You find the complete report with tables in the attached PDF or by
following
this link:

EDITOR-S NOTE

Ericsson invites media, investors and analysts to a press conference at the
Ericsson Studio, Grönlandsgången 4, Stockholm, at 09.00 (CET),
April 25, 2012.
An analysts, investors and media conference call will begin at 14.00 (CET).

Live webcast of the press conference and conference call as well as
supporting
slides will be available at and

Video material will be published during the day on

Ericsson discloses the information provided herein pursuant to the
Securities
Markets Act. The information was submitted for publication at 07.30 CET, on
April 25, 2012.

First quarter report 2012:

This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and
other applicable laws; and

(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.

Source: Ericsson via Thomson Reuters ONE

[HUG#1605711]

FOR FURTHER INFORMATION, PLEASE CONTACT

Helena Norrman
Senior Vice President, Communications
Phone: +46 10 719 3472
E-mail: or

INVESTORS

Ase Lindskog
Vice President,
Head of Investor and Analyst Relations
Phone: +46 10 719 9725
+46 730 244 872
E-mail:

Stefan Jelvin, Director,
Investor Relations
Phone: +46 10 714 2039
E-mail:

Asa Konnbjer
Director,
Investor Relations
Phone: +46 10 713 3928
E-mail:

Rikard Tunedal
Director,
Investor Relations
Phone: +46 10 714 5400
E-mail:

MEDIA

Ola Rembe
Vice President,
Head of Corporate Public & Media Relations
Phone: +46 10 719 9727
+46 730 244 873
E-mail:

Corporate Public & Media Relations
Phone: +46 10 719 69 92
E-mail:

Telefonaktiebolaget LM Ericsson (publ)
Org. number: 556016-0680
Torshamnsgatan 23
SE-164 83 Stockholm
Phone: +46 10 719 0000