LM Ericsson Telephone CompanyNASDAQ
Tue, Nov. 15, 1:21 PM
- Ericsson (ERIC +1%) nabbed two key utilities deals after being selected by the European Commission.
- As part of its Horizon 2020 program, the EC chose Ericsson for its SUCCESS project (aimed at developing 5G-based solutions to secure energy networks and grids and provide smart metering) and the RE-SERVE program (developing 5G to balance voltage and frequency for a stable power supply, and increasing power from volatile renewables).
- Ericsson's Eurolab in Germany will take the lead in the two projects. The company will join with a number of local partners in business and academia on each.
Thu, Nov. 10, 3:21 PM
- Ericsson (NASDAQ:ERIC) has gained 3.9% in U.S. trading after the company put out new expectations, an outlook that wasn't as bearish as analysts had feared.
- "We have a tough market situation out there," said acting CEO Jan Frykhammar to investors, though he pointed to gaining momentum in the company's partnership with Cisco Systems (CSCO -0.7%).
- Ericsson's been dogged by weaker industry demand for mobile broadband equipment, and shares have fallen 46.6% year-to-date on Nasdaq.
- The company expects average annual growth in its products and services market areas of 1-3% from 2016 to 2018, down from last year's forecast of 2-4% market growth from 2014-2018. Negative trends from the first half are expected to prevail for at least two or three more quarters.
- The Cisco team-up started slow but is gaining traction, Ericsson says, with more than 60 joint customers and several areas of collaboration ahead.
- "We understand that we need to perform better but you also as investors need to give us some time," Frykhammar said.
- Previously: Ericsson's new CEO builds stake (Oct. 28 2016)
- Previously: New Ericsson chief: Reinvestment will drive top line (Oct. 26 2016)
Fri, Oct. 28, 8:20 AM
- Ericsson's (NASDAQ:ERIC) incoming CEO, Börje Ekholm, bought 600K ADRs in the company on Oct. 27.
- Source: Bloomberg
- Previously: New Ericsson chief: Reinvestment will drive top line (Oct. 26)
Wed, Oct. 26, 7:32 PM
- Ericsson (ERIC +0.4%) "faces some tough decisions" of a strategic nature that will call for "courage," incoming CEO Börje Ekholm says, calling for reinvestment after a rough year where the company's market value has been nearly halved.
- Ekholm was named early today to take over for interim chief Jan Frykhammar, who had taken over when Hans Vestberg left in July. Most observers had been expecting one of Hakan Eriksson, former company CFO Karl-Henrik Sundstrom and Vodafone CTO Johan Wibergh to take over.
- Speaking to Barron's, Ekholm says "the struggles lately are more of an overall market question" than something fundamentally problematic at Ericsson.
- "I don't think you can cut your way to success," he said, emphasizing some capital rearrangement: “We need to invest in technology and development, that’s what is going to drive the top line. We need to re-invest in our business.”
- Mergers and acquisitions are on the table as well. “We will need to make acquisitions for our product offerings,” he says, “if we can buy complementary assets.” But he declined comment on whether a merger with a traditional firm like existing partner Cisco Systems might be possible.
Wed, Oct. 26, 3:20 AM
- Grappling with cost cuts and deteriorating market conditions, Ericsson (NASDAQ:ERIC) has appointed Borje Ekholm President and CEO, effective January 16, 2017.
- "He has a solid understanding of both the technology and business implications of the ongoing convergence of telecoms, IT and media," Chairman Leif Johansson said in a statement.
- Jan Frykhammar has been acting chief executive since Hans Vestberg's departure in July.
Fri, Oct. 21, 4:08 AM
- Ericsson's (NASDAQ:ERIC) shares are -3.4% in Stockholm after the telecom-network provider reported a loss of 233M kronor ($26M), more than double estimates of 112M kronor. Last year the company made a profit of 3.1B kronor.
- Operating profit collapsed 93% to 300M kronor and revenue dropped 14% to 51.1B kronor as Ericsson, which is without a CEO, continued to struggle with an industry slump and intense competition.
- "Ericsson suffers from a bloated cost base, major dysfunctions and an empty CEO seat," says Bernstein analyst Pierre Ferragu, although he added that the company's market position remains strong.
Thu, Oct. 20, 5:30 PM
Wed, Oct. 19, 12:17 PM
- Ericsson (ERIC -1.1%) may be looking outside of telecoms for its new CEO, a source tells Reuters, after the company looks past well-discussed, more obvious candidates.
- That comment came in response to a newspaper column today raising the prospect that Saab chief Hakan Buskhe could be in the running. "I understand there is a person on the short list but that it is not so easy to get the person concerned," the source said.
- CEO Hans Vestberg stepped down in July after key shareholders began pushing for an ouster.
- The conventional-wisdom short list for a replacement points at the company's Australia-based Hakan Eriksson, former company CFO Karl-Henrik Sundstrom and Vodafone CTO Johan Wibergh (also a two-decade Ericsson veteran).
- Meanwhile, the CEO search is the company's top priority, according to Ericsson's biggest shareholder. Johan Forssell, chief of Investor AB, says: “It needs to be a good leader, someone with strategic abilities, considering the large technology shifts that are happening in this industry ... It’s also an advantage to have the ability to understand the technology.”
- Shares are down nearly 25% over the past week.
Thu, Oct. 13, 5:35 PM
Wed, Oct. 12, 6:36 PM
- Ericsson (NASDAQ:ERIC) finished a brutal day post-profit warnings, losing 20.8% of market value in U.S. trading. That brings the stock to an eight-year low.
- The company said sales fell 14% in Q3, and that may be just the beginning. More job losses are likely on the heels of 3,000 cuts announced last week.
- Cost cuts aren't likely enough, says Cowen's Paul Silverstein, who reiterated a Market Perform rating and $6 price target (ERIC closed at $5.55 today on Nasdaq): "ERIC reiterated its commitment to previously announced 10B SEK cost reduction program; however, we suspect that it is likely to be insufficient to right-size the business and improve operating profitability. We also expect decreasing network sales and increasing mix of services to continue to create a challenging environment for gross and operating margins."
- Ericsson faces a double whammy of declining broadband demand and internal problems as well, including a heavy cost structure and gaps in its product line. While Ericsson leads in mobile gear, it trails rival Nokia in fixed-line and broadband equipment.
- Nokia (NOK, Ericsson's only publicly traded peer) took its own hit today, declining 5.6%.
Wed, Oct. 12, 3:01 PM
Wed, Oct. 12, 12:43 PM
Wed, Oct. 12, 9:15 AM
Wed, Oct. 12, 4:36 AM
Thu, Oct. 6, 7:36 PM
- Orange (ORAN -1.4%) and Ericsson (ERIC +0.3%) are teaming up to develop 5G solutions.
- The two are developing and testing "selected" 5G use cases -- including multi-gigabit Internet in suburban and rural environments, Internet of Things applications and connected cars -- using the telecom's network and Ericsson's 5G tech. It will also cover 4G-to-5G solutions evolution.
- "The partnership will enable 5G technology building blocks, proof of concepts, and pilots across Europe from 2017 onwards," the companies say.
- "Our ambition is to be prepared for a 5G deployment in 2020," says Orange's Alain Maloberti.
Tue, Oct. 4, 4:48 AM
- Ericsson (NASDAQ:ERIC) says it will eliminate 3.9K jobs in its home nation of Sweden as it looks to cut costs and stay competitive in the long term.
- Slowing demand for 4G mobile network infrastructure has taken a toll on Ericsson recently as the industry preps for 5G development.
- Shares of Ericsson are down 25% this year in Stockholm trading.