STOCKHOLM, Sweden-L.M. Ericsson experienced a dramatic decline in sales last quarter, to $3.6 billion from $5 billion during the third quarter of last year, and its net losses increased to $597 million from $458 million. Net income per share, however, remained reasonably constant at approximately 4 cents.
The company reported its latest results only on a pro forma basis after restating last year’s results to reflect changed accounting principles, capitalization of development costs, transfer of some phone operations to the Sony Ericsson Mobile Communications joint venture and other factors. For the latest quarter, Ericsson reported a loss of $128 million on revenues of $874 million from the joint venture.
The Swedish telecommunications equipment maker said it expected to return to profitability next year.
