Ericsson profit drops 70%, but N.A. sales up

Ericsson posted second quarter earnings that included a 70 percent decline in net income to $319 million from the second quarter last year. Corporate restructuring and the weakness of the U.S. dollar combined with a lack of return from the SonyEricsson handset joint venture continue to weigh on the company. Still, sales in North America were up 47 percent to $720 million, growth that came somewhat from IPTV and broadband-related contracts in the region.

Ericsson, which used to be most relevant as a wireless vendor where the North American market was concerned, has acquired several companies to give it a stronger front in wireline IP and broadband. The company also recently targeted the carrier Ethernet arena via its Redback Networks unit.

For more:
- see this earnings take [1] at Light Reading Europe
- and a different one [2] at Telephony

Related articles:
Ericsson recently moved into the carrier Ethernet space. Ericsson report [3]
Ericsson named Hans Vestberg CFO late last year. Ericsson report [4]