Jan 31, 2018 06:29 (GMT+0:00)

FOURTH QUARTER HIGHLIGHTS

• Reported sales decreased by -12%. Sales adjusted for comparable units and currency declined by -7% YoY, partly due to lower LTE sales in Mainland China, as expected.
• As earlier communicated, write-down of assets was made in the quarter, with a final impact on the result of SEK -14.5 b. In addition, provisions and customer project adjustments amounted to SEK -3.2 b. and restructuring charges amounted to SEK -2.4 (-4.6) b.
• Gross margin was 21.0% (26.1%). Adjusted1) gross margin improved to 29.9% (29.4%) with improved gross margin in Networks, partly offset by lower gross margin in Digital Services.
• Networks gross margin was stable QoQ, supported by a higher share of software sales and increased hardware margins. The success of the 5G-ready portfolio continued with several new contract wins.
• Operating income was SEK -19.8 (-0.3) b. Adjusted1) operating income declined to SEK 0.4 (4.4) b. due to lower sales and higher operating expenses. Higher amortization than capitalization of development expenses and higher recognition than deferral of hardware costs had a negative impact of SEK -1.4 (0.8) b.
• Cash flow from operating activities was SEK 11.2 (19.4) b. Free cash flow2) was SEK 10.1 (14.3) b.

FULL-YEAR HIGHLIGHTS

• Reported sales decreased by -10% with a decline in all segments. Sales adjusted for comparable units and currency declined by -10%.
• IPR licensing revenues amounted to SEK 7.9 (10.0) b. The baseline for current IPR licensing contract portfolio is approximately SEK 7 b. on an annual basis.
• Operating income declined to SEK -38.1 (6.3) b., mainly due to write-down of assets as well as provisions and customer project adjustments.
• Cash flow from operating activities was SEK 9.6 (14.0) b. Free cash flow2) amounted to SEK 5.1 (0.3) b. Net cash at year-end was SEK 34.7 (31.2) b.
• The Board of Directors will propose a dividend for 2017 of SEK 1.00 (1.00) per share to the AGM.

VIEW FULL ARTICLE