Welcome to our dedicated page for Telefonaktiebolaget LM Ericsson news (Ticker: ERIC), a resource for investors and traders seeking the latest updates and insights on Telefonaktiebolaget LM Ericsson stock.
Ericsson (NASDAQ: ERIC) generates a steady flow of news related to mobile communication networks, cloud software services, and enterprise connectivity solutions. Company announcements frequently highlight developments in 5G technology, including deployments of high-performing, programmable networks and advanced radio products, as well as updates from its Networks, Cloud and Software Services, and Enterprise segments.
Investors and industry followers can use this page to track Ericsson’s press releases on topics such as network rollouts, strategic partnerships, and cost-efficiency initiatives. Recent communications include information on Massive MIMO radios operating in commercial 5G networks, actions to improve the company’s cost position, and invitations to briefings on quarterly financial reports.
Ericsson’s ownership of Vonage adds another dimension to its news flow. Vonage, a part of Ericsson, publishes updates on Network APIs, CPaaS, CCaaS, and UCaaS solutions, as well as integrations with platforms like Salesforce and AWS Marketplace. These releases describe AI-powered communications APIs, contact center capabilities, and network-based fraud protection tools that are used by enterprises and developers.
News items may also cover Ericsson’s Mobility Report, which provides analysis and forecasts on 5G subscriptions, network traffic, and differentiated connectivity services. Together, these updates offer insight into how Ericsson is evolving its technology, partnerships, and financial performance. Readers interested in ERIC stock, telecom infrastructure, 5G, and enterprise communications can follow this news feed for company announcements and sector-relevant developments.
Ericsson reported strong third-quarter results with a 7% increase in sales adjusted for comparable units and currency, primarily due to 5G sales in Mainland China. Total sales reached SEK 57.5 billion, and gross margin improved to 43.1%. Operating income rose to SEK 8.6 billion, reflecting a notable recovery from losses in the prior year. Net income was SEK 5.6 billion, a significant turnaround from SEK -6.9 billion. Free cash flow was SEK 3.9 billion, showing a year-on-year improvement. The company remains confident in achieving its 2020 targets amidst ongoing global challenges.
Ericsson (NASDAQ: ERIC) will publish its financial report for Q3 2020 on October 21, 2020, at approximately 7:00 AM CEST. A conference call for analysts, investors, and journalists will follow at 9:00 AM CEST, featuring comments from President and CEO Börje Ekholm and CFO Carl Mellander. The financial report will be accessible on Ericsson's website, and a live audio webcast will be available. A replay of the conference call will be offered for a limited time after the event.
On September 18, 2020, Ericsson (NASDAQ: ERIC) announced the acquisition of Cradlepoint for an enterprise value of USD 1.1 billion. This strategic move aims to enhance Ericsson's presence in the growing 5G Enterprise sector, complementing its existing portfolio. Cradlepoint, a leader in Wireless Edge WAN solutions, reported sales of SEK 1.2 billion in 2019 with a gross margin of 61%. The transaction is expected to close by Q4 2020. However, Ericsson's operating margins may face a 1% decline in 2021 and 2022 due to acquisition-related amortization.
Ericsson (NASDAQ: ERIC) has successfully demonstrated the industry's first live C Band network in the US, achieving a peak cell capacity of 5.4 Gbps using 16-layer Multi-user MIMO technology. This innovation enhances spectral efficiency and is part of the company's 5G Distributed Innovation Network at its Plano, Texas facility. The C Band spectrum is crucial for mid-band 5G deployment, blending extended coverage and capacity, and an upcoming auction for additional bandwidth is highly anticipated. Ericsson is poised to support customers in deploying advanced 5G infrastructure.
On August 26, 2020, Ericsson announced a partnership with UNICEF to map school connectivity in 35 countries by 2023, as part of the Giga initiative. This initiative aims to provide internet access to every school globally, addressing the digital divide reinforced by the pandemic. Ericsson's multimillion-dollar commitment includes funding, data engineering, and real-time analysis of school connectivity data. With 360 million young people lacking internet access, this partnership aims to enhance learning opportunities and empower youth in the digital economy.
Ericsson has reached a significant milestone, securing its 100th commercial 5G agreement with unique service providers as of August 12, 2020. This accomplishment includes 56 live networks across five continents, reinforcing Ericsson's position in the global 5G landscape. CEO Börje Ekholm highlighted the company's commitment to customer needs, which has been central to their technological advancements. The milestone showcases Ericsson's extensive experience in 5G deployments, supported by products like the Ericsson Radio System and Cloud Core. This achievement positions Ericsson favorably as demand for 5G technology continues to rise.
Ericsson (NASDAQ: ERIC) launched Slovenia's first commercial 5G network in partnership with Telekom Slovenije on July 23, 2020, within a week of signing the contract. The initial rollout covers major cities, reaching about 25% of the population, with plans to expand to 33% by year-end. The network utilizes Ericsson's Radio System and Packet Core equipment, allowing efficient spectrum sharing. The deployment aims to enhance mobile data services, supporting emerging technologies like IoT and AR/VR. This move positions Slovenia as a leader in digital connectivity in Europe.
Ericsson has secured a multi-year deal with Deutsche Telekom for the deployment of a 5G Radio Access Network (RAN) across Germany. This partnership builds upon the successful modernization of Deutsche Telekom's existing 2G, 3G, and 4G networks. Key features include the use of Ericsson Radio System products and Ericsson Spectrum Sharing technology, which will enhance network flexibility and efficiency in managing 4G and 5G traffic. The deal emphasizes their strong collaboration and commitment to delivering advanced telecommunications solutions.
Ericsson has been selected by SoftBank to deliver a cloud-native dual-mode 5G Core for the company's standalone 5G services. This technology will allow SoftBank to innovate new use cases across consumer and enterprise sectors. The dual-mode 5G Core features zero-touch operations and enhances operational efficiency through automation and a microservice architecture. With 99 commercial 5G agreements globally, Ericsson continues to expand its footprint in the 5G market, supporting 54 active 5G networks worldwide.
Ericsson reported Q2 2020 sales of SEK 55.6 billion, a 1% increase YoY, with adjusted sales flat. Gross margin improved to 38.2% from 36.7%, largely due to higher software sales. Operating income rose to SEK 4.5 billion, achieving an operating margin of 8.2%. Net income increased by 40% to SEK 2.6 billion. Free cash flow before M&A jumped to SEK 3.2 billion. Despite Covid-19 uncertainties, Ericsson maintains its full-year financial targets, emphasizing strong performance in Networks with a 4% organic sales growth.