Infrastructure provider Ericsson offered evidence its cost-savings efforts are working against the down network equipment market, news that seemed to impress investors and send the company’s stock up almost 15 percent to $12.39 per share.
Ericsson’s net sales were down 28 percent over the same quarter last year to $3.4 billion, but the company’s net income remained the same at $329 million compared with the same quarter last year.
“We remain determined to return to profit during 2003,” said Carl-Henric Svanberg, Ericsson’s president and chief executive officer. “Over eight quarters we have more than halved our operating expenses and are approaching our earlier announced cost targets. We are encouraged by a third quarter of positive cash flow and a strengthened financial position.”
