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Jul. 23, 2007

Overall, Ericsson just announced an increase in its second-quarter profits.

However, the world's largest wireless networking equipment maker failed to meet Wall Street expectations.

Its net income rose 12 percent to 6.4 billion kronor ($964 million), while sales increased about 6.4 percent to 47.6 billion kronor ($7.18 billion).

However, gains for the quarter were the slowest in the last 12 months, due in part to sluggish sales in Europe and North America.

Since 2006, Ericsson has made six acquisitions, thus enhancing its multimedia unit.

But CEO Carl-Henric Svanberg warned not to expect "steady" performance from the unit yet.

Although growth was promising in China and India, order delays in the United States and Europe considerably hurt sales.

Sony Ericsson, the joint mobile-phone venture with Sony, also missed profit estimates, announcing the slowest growth in almost two years.

Net income for the second quarter gained 54 percent to 220 million euros ($304 million). The joint handset division contributed 16 percent to Ericsson's total pretax profit for the quarter.

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Source: Wireless Week