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Ericsson reports third quarter results 2024

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STOCKHOLM, Oct. 15, 2024 /PRNewswire/ —

Strategic highlights – solid progress on both strategic and operational priorities 

Increased momentum in programmable networks, mobile network contract wins in multiple markets.  Global supply of Network APIs secured with JV agreed between leading mobile network operators and Ericsson.  Further 5G patent licensing agreement signed in Q3, IPR revenues expected to reach at least SEK 13 b. in 2024.  

Financial highlights – strong growth in North America and continued gross margin expansion             

Sales declined by -1%* YoY, with strong growth in market area North America of 55%* offset by declines in most other market areas. Reported sales were SEK 61.8 (64.5) b.            Adjusted[1] gross income increased to SEK 28.6 (25.3) b. driven by a strong expansion in Networks adjusted[1] gross margin to 48.7% (39.9%). Reported gross income was SEK 28.2 (24.7) b.  Adjusted[1] gross margin was 46.3% (39.2%) mainly due to market mix, commercial discipline, and cost actions. A customer settlement and increased IPR revenues also contributed. Reported gross margin was 45.6% (38.4%).   Adjusted[1] EBITA was SEK 7.8 (4.7) b. with a 12.6% (7.3%) margin, benefiting from higher gross income and cost reduction actions, partly offset by targeted investments in R&D. EBITA was SEK 6.2 (3.8) b.    Net income was SEK 3.9 (-30.5) b. EPS diluted was SEK 1.14 (-9.21).  Free cash flow before M&A was SEK 12.9 (-0.5) b. benefiting from strong inventory management and market mix.  

Börje Ekholm, President and CEO, said: “Q3 marks a period of laser-focus on execution of our strategic plan. We see increasing customer momentum around programmable networks that deliver differentiated performance, and expect further traction, supported by the JV we have announced with 12 of the world’s largest telecom operators. The JV will aggregate network APIs, accelerating commercialization and generating new opportunities for network monetization.

We see signs that the overall market is stabilizing with North America, as an early adopter market, returning to growth. While the market development is ultimately in the hands of our customers, we are working to deliver operational excellence regardless of market conditions. Our Q3 results demonstrate our progress, with strong gross margin expansion and free cash flow, benefiting from our commercial discipline and operational efficiency actions.   

We expect our Networks sales to stabilize year-on-year during Q4, driven by continued good growth in North America. However, we anticipate further near-term sales pressure in Enterprise as we focus on profitable segments. We launched a new private 5G enterprise product portfolio in Q3 to support performance improvement, which remains a key priority.” 

SEK b.

Q3

    2024

Q3

     2023

YoY

 Change

Q2

  2024

QoQ

 Change

Jan-Sep

     2024

Jan-Sep

 2023

YoY

 change

Net sales

61.794

64.473

-4 %

59.848

3 %

174.967

191.470

-9 %

 Organic sales growth[2]

-1 %

-7 %

Gross margin[2] 

45.6 %

38.4 %

43.1 %

43.8 %

38.1 %

EBIT (loss) 

5.774

-28.908

-13.519

-3.645

-26.174

EBIT margin[2] 

9.3 %

-44.8 %

-22.6 %

-2.1 %

-13.7 %

EBITA[2] 

6.203

3.828

62 %

2.426

156 %

13.522

8.218

65 %

EBITA margin[2] 

10.0 %

5.9 %

4.1 %

7.7 %

4.3 %

Net income (loss) 

3.881

-30.491

-10.999

-4.505

-29.513

EPS diluted, SEK 

1.14

-9.21

-3.34

-1.43

-8.96

Free cash flow before M&A[2] 

12.944

-0.540

7.595

70 %

24.210

-13.548

Net cash, end of period[2] 

25.534

1.610

13.133

94 %

25.534

1.610

                                   

Adjusted financial measures[2]

Adjusted gross margin 

46.3 %

39.2 %

43.9 %

44.4 %

39.1 %

Adjusted EBIT (loss) 

7.327

-28.020

-11.891

-0.259

-21.173

Adjusted EBIT margin 

11.9 %

-43.5 %

-19.9 %

-0.1 %

11.1 %

Adjusted EBIT excluding impairments[3] 

 

7.327

 

3.896

 

88 %

 

3.229

 

127 %

 

14.861

 

10.743

38 %

Adjusted EBIT margin excluding impairments[3] 

11.9 %

6.0 %

5.4 %

8.5 %

5.6 %

Adjusted EBITA 

7.756

4.716

64 %

4.05

91 %

16.908

13.219

28 %

Adjusted EBITA margin 

12.6 %

7.3 %

6.8 %

 

9.7 %

6.9 %

* Sales adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations. 

[1] Adjusted metrics are adjusted to exclude restructuring charges. This is a change in nomenclature only, compared with previous reports.  

[2] Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statement.  

[3] Excluding the non-cash impairment recorded in the second quarter 2024, relating to the impairment of intangible assets mainly attributed to the Vonage acquisition. 

 

NOTES TO EDITORS 

You find the complete report with tables in the attached PDF or on www.ericsson.com/investors

Video webcast for analysts, investors and journalists 

President and CEO Börje Ekholm and CFO Lars Sandström will comment on the report and take questions at a live video webcast at 9:00 AM CEST (8:00 AM BST London, 3:00 AM EDT New York). 

Join the webcast or please go to www.ericsson.com/investors

To ask a question: Access dial-in information here

The webcast will be available on-demand after the event and can be viewed at www.ericsson.com/investors

Contact person
Daniel Morris, Head of Investor Relations 
Phone: +44 7386657217   
E-mail: investor.relations@ericsson.com  

Additional contacts
Stella Medlicott, Senior Vice President, Marketing and Corporate Relations
Phone: +46 730 95 65 39
E-mail: media.relations@ericsson.com

Investors
Lena Häggblom, Director, Investor Relations
Phone: +46 72 593 27 78
E-mail:  lena.haggblom@ericsson.com

Alan Ganson, Director, Investor Relations
Phone: +46 70 267 27 30
E-mail: alan.ganson@ericsson.com

Media
Ralf Bagner, Head of Media Relations
Phone: +46 76 128 47 89
E-mail: ralf.bagner@ericsson.com

Media relations  
Phone: +46 10 719 69 92
E-mail: media.relations@ericsson.com

This is information that Telefonaktiebolaget LM Ericsson is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 CEST on October 15, 2024. 

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/ericsson/r/ericsson-reports-third-quarter-results-2024,c4051124

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A1 International Business enhances its international voice operations with Linxa Connect

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A1 International Business teams up with Linxa to revolutionize its international voice operations with exceptional levels of automation and efficiency.

LONDON, Oct. 15, 2024 /PRNewswire/ — Linxa, a leading provider of telecom software solutions, is proud to announce that A1 International Business, a key division of A1 Telekom Austria Group responsible for international voice, messaging, and roaming, has successfully gone live with Linxa Connect to support its international voice operations. This strategic partnership marks a major milestone, with Linxa Connect replacing multiple legacy routing, rating, billing, pricing, and reporting systems to deliver unprecedented automation and operational efficiency.

Linxa implemented its hybrid deployment model, hosting Linxa Connect in Germany while deploying routing servers on-site at A1’s premises. This setup will allow A1 to reduce operational complexity and costs by replacing several legacy systems. With its greater ability and flexibility, the Linxa platform will enable A1 International Business to adapt more quickly to evolving market demands and better serve its customers.

“We’re thrilled to support A1 International Business, a significant European and global player in the wholesale industry,” said Kunal Dave, Vice President, Global Sales at Linxa. “By transitioning A1 to our advanced Linxa voice platform, we’ve accelerated transformation of their international voice operations, streamlining processes, improving operational efficiency, and realizing significant cost savings. The platform offers further opportunities for growth by integrating other Linxa products, enabling A1 to explore even more creative solutions in the voice and number-intelligence space.”

The Linxa project team worked closely with A1 to understand their challenges, re-engineering processes and leveraging the flexibility of Linxa Connect to mitigate issues. This collaboration has enhanced A1’s ability to respond swiftly to market demands, delivering dynamic solutions  to their customers and partners.

Denis Filazafovitch, Director of International Business at A1, stated: “Migrating to Linxa’s voice platform marks a significant step in the ongoing transformation of A1’s international voice business. With Linxa Connect, we’ve gained greater operational efficiency and the agility to navigate the increasing complexity of the international voice market. This shift provides us with enhanced control and confidence in our core operations, while also opening new opportunities for growth through advanced business intelligence and security features.”

As A1 International Business moves forward with Linxa Connect, the company confirms its commitment to serve its customers with the highest quality and efficiency, involving industry innovations and dynamically responding to changes in the international telecom landscape. This project underscores Linxa’s dedication to innovate and deliver cutting-edge solutions, that enables partners to operate more efficiently and competitively.

About Linxa

Linxa delivers telecom software platforms designed to make it simpler and faster to grow profitability and capture new revenue in the complex telecom market. Along with high performance switching and network products, we offer tools and support to efficiently manage rating, pricing, routing, monitoring / reporting and invoicing with high levels of automation. This enables telecom providers to focus on their core business, reduce fraud and disputes, while optimizing routing and making real-time decisions based on price and quality. Linxa has offices in the UK and Turkey with local presence in USA, Sweden, Netherlands, Germany, Tunisia, South Africa and Australia. 
www.linxa.com

About A1 International Business

About A1 Group:

A1 Group, listed on the Vienna Stock Exchange, is a leading provider of digital services and communications solutions in Central and Eastern Europe with around 29 million customers, currently operating in seven countries under the brand A1: Austria, Bulgaria, Belarus, Croatia, the Republic of Serbia, Slovenia and the Republic of North Macedonia.

Offering communications, payment and entertainment services as well as integrated business solutions, A1 Group achieved revenues of 5.3 billion Euros by year end 2023. Around 18,000 employees and state of the art broadband infrastructure make digital business and lifestyle possible and enable people, companies and things to connect everywhere anytime. As European unit of América Móvil, one of the largest wireless services providers in the world, A1 Group is headquartered in Vienna and gives access to global solutions. www.A1.group

www.internationalbusiness.a1.group

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Hi-MO X6 Brings A Greener Future to Wood Manufacturing and Processing

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SURAT THANI, Thailand, Oct. 15, 2024 /PRNewswire/ — LONGi, in partnership with Smart Solar Corporation Co., Ltd. plays an active role in transforming the electricity infrastructure of Thailand’s wood manufacturing and processing industry.

J.U.N. EXPRESS, a manufacturer of rough-sawn rubberwood and furniture parts with over nine years of experience, relies heavily on a fully automated production process. This process involves woodcutters, sanders, conveyors, and other equipment that consume significant amounts of electricity. The demands of uninterrupted production lines and high energy consumption, along with the resulting pollution, are at odds with the principles of green development.

Given the rising electricity cost in Thailand, after thoughtful consideration and EPC recommendation, J.U.N. EXPRESS embraced solar power by installing Hi-MO X6 solar panels. These panels, known for their superior temperature coefficient and low-light performance, ensure efficient and stable power generation in Thailand’s hot and humid climate. This installation significantly offsets electricity costs and guarantees smooth production for the company.

The total power generation has reached 620,193 kWh, saving the factory 619,240 Thai Baht (US$17,200) monthly and accumulating to 2,914,909.17 Thai Baht (US$81,000) over four months. The estimated annual savings are expected to reach approximately US$206,400. In addition, the factory’s monthly CO2 emissions have been reduced by 63 tons, totaling a reduction of 296 tons. By utilizing solar energy, J.U.N. EXPRESS is effectively lowering electricity costs and protecting the environment while ensuring consistent production.

LONGi is committed to advancing solar power technology, helping businesses achieve energy independence and sustainable development through its highly efficient and reliable products.

About LONGi

Founded in 2000, LONGi is committed to being the world’s leading solar technology company, focusing on customer-driven value creation for full scenario energy transformation.

Under its mission of ‘making the best of solar energy to build a green world’, LONGi has dedicated itself to technology innovation and established five business sectors, covering mono silicon wafers cells and modulescommercial & industrial distributed solar solutionsgreen energy solutions and hydrogen equipment. The company has honed its capabilities to provide green energy and has more recently, also embraced green hydrogen products and solutions to support global zero carbon development. www.longi.com

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OutSystems Unveils Mentor, a First-of-Its Kind AI-Powered Application Generation Experience

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Leading the Generative Software Era, company announces exclusive early access to its highly-anticipated full software development lifecycle (SDLC) digital worker at the 2024 ONE Conference in Amsterdam

SINGAPORE, Oct. 15, 2024 /PRNewswire/ — OutSystems, a global leader transforming how companies innovate through software, today announced Mentor, the industry’s first full software development lifecycle (SDLC) digital worker, enabling app generation, delivery, and monitoring, all powered by low-code and GenAI.

Announced live on-stage at the OutSystems ONE Conference, aimed at showcasing the next generation of app development with the combined power of low-code and GenAI, CEO & Founder Paulo Rosado unveiled how Mentor, formerly known as Project Morpheus, transforms software development and management workflows into a major competitive differentiator. Using AI-driven app generation, optimization, automated quality checks, and agents all under the governance of centralized IT, Mentor boosts developer productivity while ensuring applications meet the highest quality standards—all at a speed previously thought impossible.

 “The Generative Software Cycle is here. In fact, 93% of executives are planning to increase their investment in AI-powered solutions, driving developer productivity and value creation to unprecedented heights,” said Rosado. “But speed can lead to technical debt and security issues if not managed carefully. With OutSystems Mentor, developers can now build full-stack applications in minutes, without sacrificing quality, security, or governance. Mentor ensures apps are built right from the start, changing how software development gets done.”

Mentor introduces a true “shift-left” approach to app creation, enabling developers to start earlier in the process. Beginning with discovery and rapid prototyping, IT teams can validate ideas and refine initial designs before full-scale development. Users simply describe the app they need or their vision, and Mentor generates an initial version with front-end functionality, data models, and embedded business logic. By automating app prototyping and ensuring best-in-class code quality, Mentor redefines the SDLC. It combines the widely popular features of the AI Mentor System with the cutting edge innovations of the OutSystems Developer Cloud (ODC). This enables IT teams to:

Generate fully functional, scalable applications with the power of GenAI in a matter of minutes, significantly reducing development time.Iterate and evolve applications effortlessly using AI-powered suggestions, enabling continuous improvement and rapid iteration.Embed AI agents within apps, adding advanced capabilities like natural language understanding to humanize digital interactions – without any coding.Validate and maintain applications through AI-powered code reviews, ensuring all applications meet the highest possible standards for development, security, performance, architecture and long-term maintainability.

Formerly known as Project Morpheus, OutSystems Mentor is a major advancement in OutSystems’ AI strategy, which includes: using generative AI to accelerate iterative application development; applying generative AI throughout the SDLC to improve security, performance, and agility; and building generative AI-powered applications to accelerate transformation. Unlike traditional code with GenAI, Mentor overcomes key challenges such as orphaned code, poor code quality, and lack of transparency and explainability. It ensures teams maintain control, reduce technical debt, and fully harness the potential of AI-driven software development, making it a smarter, more efficient choice for modern, rapid application development.

“The classical SDLC assumes that ideation, analysis, design, and development tasks are and should be performed by separate specialized roles and steps — but AI can and will combine these tasks into a frictionless creative act,” wrote John Bratincevic, Principal Analyst and Diego Lo Giudice, VP, Principal Analyst at Forrester¹.[1]

Interested developers and IT leaders can now request an invitation to the Mentor early access program. The GenAI-powered app generator and editor capabilities of Mentor will be generally available in early 2025. To learn more, visit the Mentor home page.

About OutSystems

OutSystems is a global leader transforming how companies innovate through software, empowering IT leaders with a better way to build the software that matters most. The OutSystems platform helps companies develop, deploy, and maintain mission-critical applications by unifying and automating the entire software lifecycle. With OutSystems, organizations leverage GenAI to deliver software instantaneously, adapt faster to changing requirements, and reduce technical debt by building on a future-proof platform. Helping customers achieve their business goals by addressing key strategic initiatives, OutSystems delivers software up to 10x faster than traditional development. Recognized as a leader by analysts, IT executives, business leaders, and developers around the world, global brands trust OutSystems to tackle their impossible projects and turn their big ideas into software that moves their business, people, and the world forward.

Founded in 2001, the company’s network spans more than 800,000 community members, over 500 partners, and active customers in 75+ countries across 21 industries. Learn more at www.outsystems.com

[1] ¹”The Rise Of Application Generation Platforms”, Forrester, May 7, 2024

 

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