ERICSSON REGION MIDDLE EAST SALES INCREASE 12%

• Ericsson’s Middle East sales increased 12% year-over-year, 42% sequentially and 2% for the full year
• Saudi Arabia develops especially favorably in the quarter
• Ericsson believes that the industry fundamentals for longer-term positive develop

Mobilk - Ericsson (NASDAQ:ERIC), today reported financial results for the fourth fiscal quarter ending December 31, 2011. The company reported a sales increase in the Middle East of 12% year-over-year, 42% sequentially and 2% for the full year. Sequentially, there was a strong development in all segments. Saudi Arabia developed especially favourably in the quarter although the region was still negatively impacted by political unrest in many countries with operators continuing to be cautious with infrastructure investments. 

LTE is being deployed in parts of the region and WCDMA/HSPA continued to develop positively across the region, resulting in positive networks sales both year-over-year, sequentially and for the full year. Services also developed favorably since operators are looking into opportunities to increase efficiencies.

“We’ve had some major achievements in 2011, and despite the political unrest that still affects the region’s economies and business decisions, we have announced a number of successes with our customers throughout the year which is a testament to the region’s potential as a telecommunications hub,” said Anders Lindblad, Head of Ericsson Region Middle East. “It is through the strong partnerships with the industry’s leaders here in the region that we are advancing our vision of 50 Billion connected devices and a truly ‘Networked Society’ globally and here in the Middle East.” 

"For the full year 2011, we had a strong sales growth and an increase in net income. In the fourth quarter, however, we saw weaker development in Networks, as well as an expected gross margin impact from a changed business mix with more coverage projects, modernization projects in Europe, and a higher services share," says Hans Vestberg, President and CEO of Ericsson.

In 2011, we have successfully executed on our strategy to leverage our strength in the growth areas mobile broadband, managed services and operating and business support systems. Many operators have had mobile broadband high on the agenda and the industry has during the year seen a shift to higher proportions of coverage buildouts. We have further strengthened our market position in mobile networks. With 70 new managed services contracts during 2011 we are confident of our strong offering and market leadership. With the acquisition of Telcordia, now concluded, we have also gained a leadership position and skilled people in the important areas of operating and business support systems.

We believe that the industry fundamentals for longer-term positive development remain solid. Short-term, we expect operators to continue to be cautious with spending, reflecting factors such as macro economic and political uncertainty. We will continue to execute on our strategy which means that the business mix, with more coverage and network modernization projects than capacity projects, will prevail short-term. With our global scale and presence, as well as technology and services leadership, we are well positioned to continue to drive and lead the industry development," concludes Vestberg.