Ericsson Revenue grew but Gross Margin declined in year 2011- partly due to 3G rollouts in India!

Ericsson, the Swedish telecom equipment giant, yesterday announced its financial & operational performance results, ending year 2011.

The key highlights of Ericsson’s performance in year 2011 are:

  • The revenue grew by 12{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3}, reaching to $203 billion as on Q4 2011, driven by strong demand for mobile broadband along  with network rollout services.
  • Net Income through operations grew 12{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3}, reaching to $11.2 billion as on Q4 2011.
  • Software represented 24{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3}, hardware 37{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} and services 39{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} of total sales in 2011 and 10{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} of market share in telecom services, larger than any other competitor in the segment.
  • In 2011, gross margin declined from 38.2{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} to 35.1{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} due to higher share of  coverage projects, network modernization projects in Europe and 3G rollouts in India.
  • Mobile Network equipment market grew by 6{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} and now accounts for 38{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} of total mobile network market equipment globally, twice higher than second nearest competitor.
  • Managed Services sales increased by 13{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} year-over-year to $5.4 and 14{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} sequentially, mainly driven by India and Latin America. Ericsson managed to sign 70 new managed services contract in 2011, including latest with Idea Cellular in 5 states in India.
  • RBS 6000, the multi standard (GSM, WCDMA/HSPA, CDMA, LTE) radio base station, now accounts for close to 100{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} of base station deliveries.

For more details of financials results, kindly check here.

Tags : EricssonEricsson Financial Results 2011Ericsson Global Telecom Equipment market shareEricsson managed Services revenueRBS 6000Sony EricssonST Ericsson