Ericsson has announced the report of its first-quarter results for the fiscal year 2013. The company reported sales of SEK52.0 billion in the first quarter, showing an increase of 7% YoY and decline of -19% QoQ.
The operating income was SEK2.1 billion with an operating margin of 4.0%. Last year's margin of 17.8% was positively impacted by a gain of SEK7.7 billion from the divestment of Sony Ericsson.
The net cash decreased by SEK-6.3 billion QoQ to SEK32.2 billion mainly due to negative operating cash flow and reclassification of Swedish special payroll taxes of SEK1.8 billion from other current liabilities to Pension liabilities.
Hans Vestberg, President & CEO, Ericsson, said, "Sales showed positive development in the quarter with a growth of 2% YoY, despite currency headwind. Sales for comparable units, adjusted for FX and hedging, grew 7%. The sales increase was primarily driven by Networks and rollout services, following high project activities primarily in Europe and North America.
He added that while macroeconomic and political uncertainty continues in certain regions, the long-term fundamentals in the industry remain attractive and Ericsson is well positioned to continue to support its customers in a transforming ICT market.
Within the Mobile Broadband area, the vendor selection processes for 4G/LTE in Russia and China have been initiated. The company sees continued momentum for the SSR routing platform with 12 new contracts in the quarter.
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