Mobile-phone maker Sony Ericsson Mobile Communications posted a second solid quarter, this time even managing to report a net income. The news likely will help the company in its global market share battle with Asian startup LG Electronics, as well as encourage Sony Corp. and L.M. Ericsson to remain committed to the joint venture.
Sony Ericsson reported a net income of $72 million, the company’s first quarter to edge into the black since its inception. In the previous quarter Sony Ericsson reported a net loss of $98 million, which included the costs associated from its withdrawal from the North American CDMA market. Sony Ericsson reported sales of $1.5 billion for the third quarter and unit shipments of 7.1 million.
“We are encouraged by the improvements achieved during the third quarter and particularly with the high demand for our PDC phones in Japan and the continued success of the T610-series in GSM markets,” said Katsumi Ihara, the company’s president.
Sony Ericsson said again it plans to be profitable for the second half of the year, but said it doesn’t expect to post the same profit numbers in the fourth quarter due to sales of lower-priced phones.
In other mobile-phone earnings news, Audiovox Corp. blamed its sluggish quarter on delays in several of its mobile-phone introductions. The company reported net sales for the third quarter of $266 million, down from $302 million reported in the comparable period a year ago. The company’s net income also decreased to $647,000 in the quarter from $2.6 million a year earlier.
“In our wireless group, ACC, sales and profits were adversely affected by the late introduction of several handsets, which are awaiting final testing and approval by the carriers,” said John Shalam, the company’s president and chief executive officer. “However, we have begun shipping our 8600 series and anticipate the introduction of our 8400 series as well as the 9900 series and 8900 series camera phones in time for the holiday season. We believe these new product introductions will have a positive impact on both our fiscal fourth quarter 2003 and fiscal first quarter 2004 results.”
