Ericsson joined the lengthening list of vendors who have issued third-quarter earnings warnings. The mobile vendor giant, which also has made key investments in wireline IP edge assets in recent years, is not scheduled to publish quarterly earnings until Oct. 25, but said it would miss analysts' expectations for operating profit and other metrics.
The company is blaming a soft market for mobile network infrastructure, and says it underestimated some of the market-changing forces that have developed recently. Still, Ericsson said its professional services organization and its multimedia efforts are performing well. Subsequent to the profit warning, the company's stock price got a big smackdown, losing 25% of its value. Ouch.
For more:
- Light Reading covers the story and the market outlook
Related articles:
- Alcatel-Lucent last month trimmed its revenue outlook for this year