Issue #2004 - 02
OUTLOOK & TRENDS
Financial News from Wireless & Mobile Companies
1. Swedish telecoms equipment maker Ericsson has reported surprisingly strong fourth-quarter profits and signalled a return to growth in 2004 with healthier margins. The world's biggest producer of mobile networks made an adjusted pretax profit of 5.5 billion Swedish crowns (410 million pounds) in October-December, more than doubling expectations of 2.66 billion crowns.
It reported a pretax loss adjusted for restructuring costs of 2.1 billion crowns in the fourth quarter of 2002.
Ericsson, which used massive cost-cutting to return to a profit only in the third quarter after almost three years in the red, reported fourth-quarter sales of 36.2 billion crowns.
Revenues exceeded expectations of 34.6 billion crowns thanks to year-end spending by U.S. operators as well as continued rapid expansion by carriers in China and India. Following brighter outlooks from competitors, Ericsson reinforced hopes of a sector turnaround.
2. Cisco Outlook Optimistic- Profits Rise in Q2
In a recently news release, Cisco reported net sales for the second quarter of fiscal 2004 around $5.4 billion, compared with $4.7 billion for the second quarter of fiscal 2003. This is an increase of 14.5 percent, and compared with $5.1 billion for the first quarter of fiscal 2004, an increase of 5.8 percent.
Mr. Chambers was generally optimistic about 2004. Go to Cisco site for more.
3. Sprint PCS Reports Gains, Losses
Sprint Corp. posted a 4Q03 profit of $38 million, but its wireless (PCS) division posted a net loss of $322 million. The loss came as Sprint PCS took charges for restructuring as well as for scrapping a billing project. While Sprint PCS's overall quarterly profit was down slightly from the year prior, it saw an 8.4 percent increase in its operating revenue to $3.3 billion from one year ago. (Source: Reuters, IDG)
4. DoCoMo Reports Profitable Earnings
NTT DoCoMo reported fiscal earnings for the first nine months of 2004 and all signs point to a profitable year. The Japanese mobile phone operator posted a net profit of $4.68 billion, or about 80 percent of the company's projected profit for the full fiscal year ending March 31, while reiterating its earnings outlook for the entire year. During the same time, DoCoMo’s sales totaled ¥3.828 trillion. The trend is expected to continue as analysts expect DoCoMo revenue to pick up in coming months from sales of new handsets with beefed-up capabilities for its super-fast 3G, or third-generation, service called FOMA. (Source: AP Via CTIA)
Source: Several, including CTIA, FierceWireless, Reuters & Press Releases Sent To MobileInfo.Com
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