Dallas, Texas 07/19/2013 (Financialstrend) – Ericsson (NASDAQ:ERIC), Swedish network equipment vendor reported second-quarter results where net profit was well below market expectations. The company’s net profit rose from SEK1.11 billion to SEK1.47 billion, while analysts expected it to be SEK3.04 billion, lower than the expected sales and profit margins due to currency headwinds and challenging market conditions in Asia. Recently the company announced that it entered into an agreement with Tele2 Norway which were signed for next-generation nationwide coverage. By this contract it is expected that Ericson will upgrade and can expand 2G and 3G networks of Tele2 which is already existing in Norway, will enable the company to become a leading vendor in that country for the radio access solutions. The agreement also includes upgrade of core solutions, Ericsson RBS 6000 family’s multi-standard radio base station equipment, upgrade of 2G and 3G access network of Tele2 which is already existing and LTE RAN software.
Earlier it was reported that Ericson is going to acquire the whole business of TeleOSS Consulting Ltd which is a Thailand-based company, the acquisition was aimed to enhance strength to its systems integration capabilities for OSS.
Shares of Ericsson (NASDAQ:ERIC) had moved on to decline 4.76% on Thursday and thereby closed at $11.60 per share for the day. The company had recorded intraday price fluctuations moving from as low as $11.38 to as high as $11.71 on the day. The 52 week low for the stock is at $8.31 and 52 week high is at $13.46 per share.
The company holds 3.30 million shares and 4% of institutional ownership with a market cap of $38.34 billion. On Thursday, there had been a trading volume of 10.85 million shares of the company while the average is at 2.8 million shares per day.