Ericon discontinues development of modems - shifts part of investment into radio networks
18/09/2014
Discontinues development of LTE thin modems with the intent to reduce or redeploy workforce. Now entering into local co-determination negotiations with employee representatives to determine next steps
Will deliver commercially available Ericsson M7450 modem as planned
With current visibility todays announcement will lead to a significant reduction in costs related to the modem business in the first half of 2015 and Modems will have no impact on Group P&L from the second half of 2015
Ericsson (NASDAQ:ERIC) today announced it will discontinue future development of modems and shift parts of resources in modems to radio network R&D to better capture growth opportunities in this area. The change in strategy for modems comes as the company completes its previously communicated evaluation of the future of the modems business.
In order to capture opportunities in radio networks, especially within small cells, energy efficiency and M2M, Ericsson has an immediate need to increase its R&D resources by approximately 500 people. Parts of the Modems organization have a relevant R&D competence base to support this growth.
Ericsson took over the LTE thin modem operations as part of the breakup of the joint venture with STMicroelectronics in August 2013. Since then, the modem organization has focused on bringing the first devices integrating an Ericsson modem on the market. This was achieved in August 2014 with M7450 which Ericsson continues to deliver to its customers.
Since integration, the modems market has developed in a direction that has reduced the addressable market for thin modems. In addition, there is strong competition, price erosion and an accelerating pace of technology innovation. Success in this evolved market requires significant R&D investments. As a consequence, Ericsson has decided to shift away from modem development to increase focus on opportunities in radio networks.
This is in line with previously communicated statement to evaluate success of Modems within 18-24 months of integration. As a result of the change in strategy Ericsson intends to reduce or redeploy workforce. Local co-determination negotiations with employee representatives to determine next steps will now commence.
Hans Vestberg, President and CEO of Ericsson said: We have concluded the first phase of the modems strategy by successfully delivering the Ericsson M7450 modem. However, given the modem market dynamics and the development in small cells and indoor coverage markets, we believe resource re-allocation is more beneficial for the Ericsson Group and our customers overall.
The execution of the announced change in strategic direction will commence during the fourth quarter 2014 and we still estimate the R&D cost for Modems to amount to approximately SEK 2.6 b for the full year 2014. With current visibility todays announcement will lead to a significant reduction in costs related to the modem business in the first half of 2015 and Modems will have no impact on Group P&L from the second half of 2015.
Segment Modems will continue to be reported separately until end 2014.
SEGMENT MODEMS
1,582 employees distributed across the following main sites: Sweden (689), India (235), Germany (216), China (206), Finland (122).
NOTES TO EDITORS
CONFERENCE CALL FOR ANALYSTS, INVESTORS AND MEDIA
A conference call for financial analysts, investors and media will begin at 15:00 CET (14:00 UK time, 10:00 Eastern Daylight Time in the US, and 23:00 local time in Japan). CEO Hans Vestberg and CFO Jan Frykhammar will comment on the announcement and take questions.
Sweden: 46 8 50 520 270 (toll free Sweden: 0200-125 785)
International/UK: 44 208 817 93 01 (UK free phone 0800 634 5205)
US: 1 718 354 1226
Confirmation number: 15379726
Please call in at least 15 minutes before the conference call begins.
A live audio webcast of the conference call will be available at www.ericsson.com/investors and www.ericsson.com/press.
Download high-resolution photos and broadcast-quality video at www.ericsson.com/press
Ericsson is the driving force behind the Networked Society - a world leader in communications technology and services. Our long-term relationships with every major telecom operator in the world allow people, businesses and societies to fulfill their potential and create a more sustainable future.
Our services, software and infrastructure - especially in mobility, broadband and the cloud - are enabling the telecom industry and other sectors to do better business, increase efficiency, improve the user experience and capture new opportunities.
With more than 110,000 professionals and customers in 180 countries, we combine global scale with technology and services leadership. We support networks that connect more than 2.5 billion subscribers. Forty percent of the worlds mobile traffic is carried over Ericsson networks. And our investments in research and development ensure that our solutions - and our customers - stay in front.
Founded in 1876, Ericsson has its headquarters in Stockholm, Sweden. Net sales in 2013 were SEK 227.4 billion (USD 34.9 billion). Ericsson is listed on NASDAQ OMX stock exchange in Stockholm and the NASDAQ in New York.
www.ericsson.com
www.ericsson.com/news
www.twitter.com/ericssonpress
www.facebook.com/ericsson
www.youtube.com/ericsson
FOR FURTHER INFORMATION, PLEASE CONTACT
Ericsson Corporate Communications
Phone: 46 10 719 69 92
E-mail: media.relations@ericsson.com
Ericsson Investor Relations
Phone: 46 10 719 00 00
E-mail: investor.relations@ericsson.com
Ericsson discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The info
LINK: | http://www.ericsson.com/uk/thecompany/press/releases/2014/09/1856711... |
See more stories from ericsson |
Most recent headlines
04/08/2024
Dalet Appoints Santiago Solanas as CEO to Lead Next Era of Growth and Innovation
Dalet, a leading technology and service provider for media-rich organizations, is excited to announce Santiago Solanas as its new Chief Executive Officer (CEO)....
03/06/2024
Dalet and Veritone Reach Agreement to Distribute, Transact and Monetize Media Archives
Dalet, a leading technology and service provider for media-rich organizations, a...
28/04/2024
Mediahaus delivers the first SRT live-streaming sports production over 5G with URSA Broadcast G2
Mediahaus delivers the first SRT live-streaming sports production over 5G with U...
18/04/2024
2024 NAB Show Attendance Topped 61,000
LAS VEGAS The National Association of Broadcasters is reporting that more than 61,000 people attended the 2024 NAB Show, where artificial intelligence and the c...
18/04/2024
How today's storage and memory decisions underpin future creativity
Ann Keefe, Regional Director - UK and Ireland at Kingston Technology, explains how storage and memory decisions made now are underpinning creativity in the futu...
18/04/2024
Krisha Marcano Announced as Dean of Theater for Boston Conservatory at Berklee
Krisha Marcano Announced as Dean of Theater for Boston Conservatory at Berklee The theater educator, choreographer, and performer will join Boston Conservator...
18/04/2024
Escape Studios obtains UKVI licence to support international students
The newly acquired UKVI licence enables Escape Studios to recruit and retain international students By Matthew Corrigan Published: April 18, 2024 The newl...
18/04/2024
NAB 2024 popular among first time visitors
Attendees from more than 163 countries were present, including 34 delegation buying groups from around the world By Matthew Corrigan Published: April 18, 202...
18/04/2024
Dyn Media and NEP Germany pioneer new frontier in remote...
In August 2023, Dyn Media launched as a new broadcaster in European sports, aimed at giving sports beyond football the exposure and viewership they deserve. The...
18/04/2024
Hitomi partners with ES Broadcast Hire for US rentals
Hitomi Broadcast, market leader in audio/video alignment and latency tools based in the UK, has signed a partnership deal with global broadcast rental specialis...
18/04/2024
Screen Australia and Dynamic Television announce new Scripted Initiative
18 04 2024 - Media release Screen Australia and Dynamic Television announce new Scripted Initiative Savage River Screen Australia and Los Angeles-based telev...
18/04/2024
Vislink's DragonFly V - The Company's Smallest-Ever Transmitter Debuted at NAB 2024
Vislink's DragonFly V - The Company's Smallest-Ever Transmitter Debuted ...
18/04/2024
MediaSilo to Offer Camera to Cloud with Atomos
MediaSilo to Offer Camera to Cloud with Atomos Brie Clayton April 17, 2024 0 Comments Integration between MediaSilo and Atomos Cloud Studio unlocking ...
18/04/2024
MultiDyne Updates its SilverBULLET Series to Serve More Fiber-Optic Links
MultiDyne Updates its SilverBULLET Series to Serve More Fiber-Optic Links Brie Clayton April 17, 2024 0 Comments MultiDyne Fiber Optic Solutions intro...
18/04/2024
Cinedeck Partners with Paramount to Revolutionize Content Delivery Process
Cinedeck Partners with Paramount to Revolutionize Content Delivery Process Brie Clayton April 17, 2024 0 Comments Cinedeck, a pioneer in integrated de...
18/04/2024
Unreal for video adding rocks and foliage
Unreal for video adding rocks and foliage Graham Quince April 17, 2024 0 Comments Welcome to my series on learning Unreal Engine for After Effects u...
18/04/2024
Best Budget Beginner-Friendly 4k Drone
Best Budget Beginner-Friendly 4k Drone Sean Alami April 17, 2024 0 Comments Potensic Atom 4k 3 axis Gimbal Drone, ideal drone for beginners. Some con...
18/04/2024
Race or Just Have Fun at Rocky Mount Mills for a Good Cause, Not Your Run of the Mill 5K
Rocky Mount Mills will be overflowing with runners, families and friends, all fo...
18/04/2024
Berklee's Yoon-Ji Lee Receives Guggenheim Fellowship
Berklee's Yoon-Ji Lee Receives Guggenheim Fellowship Lee, an assistant professor of composition, creates music based on unconventional and nonlinear struc...
18/04/2024
Ben Sherwood, Former ABC President, Named CEO at The Daily Beast
Ben Sherwood, former president of Disney ABC Television Group, has been named CEO and publisher at The Daily Beast. Joanna Coles, former chief content officer a...
18/04/2024
Prison Journalism: April's experiences of black boudoir
Prison Journalism: April's experiences of black boudoirThabo Mthembu was incarcerated in Pollsmoor Prison from 2014 to 2019. Read Thabo's story by Tha...
18/04/2024
Prison Journalism: Can gangsterism and violence be reduced in prison?
Prison Journalism: Can gangsterism and violence be reduced in prison?Dean Mashimbwe, a Zimbabwean migrant residing in Cape Town, was incarcerated at Pollsmoor C...
18/04/2024
Software-making music: How DJs are doing it
Software making music: How DJs are doing itSoftware plays a big part in music production, recording, and performances. Here's what DJs are using, and how yo...
18/04/2024
Tonight on House of Zwide: Zanele later blindsides an unwitting Faith into meeting with Zola
Tonight on House of Zwide: Zanele later blindsides an unwitting Faith into meeti...
18/04/2024
Debut author stuns with international bestselling thriller Anna O'
Debut author stuns with international bestselling thriller Anna O'Matthew Blake burst onto the book scene with his bestseller Anna O', a deliciously d...
18/04/2024
Up to No Good: No Rest for the Wicked' Early Access Launches on GeForce NOW
It's time to get a little wicked. Members can now stream No Rest for the Wicked from the cloud. It leads six new games joining the GeForce NOW library of m...
18/04/2024
Skeem Saam: Wednesday's episode, 17 April 2024 [video]
Skeem Saam: Wednesday's episode, 17 April 2024 [video]Missed an episode of Skeem Saam? No problem! Watch the latest episode of your favourite South African ...
18/04/2024
Watch: Trailers for the best Afrikaans movies ever made
Watch: Trailers for the best Afrikaans movies ever madeDon't know what to watch? Here are some of the best Afrikaans movie trailers ever made, including Too...
18/04/2024
Thales secures three major contracts to modernize the Portuguese railway infrastructure
Facebook Twitter LinkedIn Thales alongside partners SISINT and CONECTICABO...
18/04/2024
RT Prime Time experiment reveals disturbing content recommended to 13 year old TikTok users in Ireland
In response to growing concerns raised regarding the adverse impact of TikTok co...
18/04/2024
Remembering Alf McCarthy and Larry Masterson
We were saddened to learn this morning of the passing of our friend and former colleague, Alf McCarthy who died yesterday. We remember Alf as a popular present...
18/04/2024
NVIDIA Honors Partners of the Year in Europe, Middle East, Africa
NVIDIA today recognized 18 partners in Europe, the Middle East and Africa for their achievements and commitment to driving AI adoption. The recipients were hon...
17/04/2024
Sundance Institute Launches RFI and RFP Process to Explore Host Locations for the Sundance Film Festival in 2027 and Beyond
Opening today, the exploration is aimed at selecting a location that will preser...
17/04/2024
Spotify's Michael Krause Talks Industry Trends Ahead of Our Music and Podcasting Summits in Germany
On April 18 and 19, experts from across the audio industry-including artists, pu...
17/04/2024
Spotify Brings Entrepreneurs and Trailblazers Together to Talk the Future of Tech in the UK
With its particular combination of talent, ambition, culture, and, of course, wo...
17/04/2024
NextGen Partners With Howard University Professor Nikole Hannah-Jones on Student Podcasting Course
At Spotify, we want to equip student creators with the tools and resources neede...
17/04/2024
Strengthening Australian Industry Capability Through Sovereign Sustainment Support
L3Harris Communications Australia Field Service support continues to grow with a...
17/04/2024
L3Harris Team Aligns 10 Mirrors for NASA's Roman Telescope
An optical technician lays on a diving board suspended between NASAs Nancy Grace Roman Space Telescopes primary and secondary mirrors. The photo is a projected ...
17/04/2024
Graham Media Selects Bitmovin Playback
DENVER Video streaming infrastructure provider Bitmovin has announced that the Graham Media Group has selected Bitmovin Playback to enhance its viewer experienc...
17/04/2024
Survey: LGBTQIA+ TV Visibility Drives Viewership Among Young Americans
LGBTQIA+ representation in TV content boosts viewership among young (18-34) Americans, according to a new report from Horowitz Research....
17/04/2024
New NVIDIA RTX A400 and A1000 GPUs Enhance AI-Powered Design and Productivity Workflows
New NVIDIA RTX A400 and A1000 GPUs Enhance AI-Powered Design and Productivity Wo...
17/04/2024
Frezzi Unveils SunLight 2: The Ultimate High-Output Lighting Companion for ENG and Broadcast Production
Frezzi Unveils SunLight 2: The Ultimate High-Output Lighting Companion for ENG a...
17/04/2024
Peakto Search for Lightroom - Find at a glance among thousands of photos AND videos
Peakto Search for Lightroom - Find at a glance among thousands of photos AND vid...
17/04/2024
Simone Pilon Appointed Executive Director at Berklee Valencia
Simone Pilon Appointed Executive Director at Berklee Valencia Pilon, who has served as Berklee Valencia's interim executive director since March 2023, has a...
17/04/2024
CBS Cuts Off Billy Joel Concert Telecast (Updated)
CBS will re-air Sundays Billy Joel concert telecast this Friday (April 19) after several CBS-affiliated stations abruptly cut part of Sundays telecast of the si...
17/04/2024
Jacqueline Matter Named Co-Host on WTTG's Good Day DC'
Jacqueline Matter has been named co-host of Good Day DC at WTTG Washington. Effective immediately, she co-anchors the 4 a.m. newscast with Stephen Graddick, rep...
17/04/2024
TV Usage Takes March Dip While College Hoops Help Cable
Television usage took its usual March dip, dropping 3% from February, according to Nielsen,...
17/04/2024
BET, Tyler Perry Extend Content Agreement Through 2028
BET Media Group, part of Paramount Global, said it and Tyler Perry had reached an agreement extending their content production deal through 2028....
17/04/2024
Warner Bros. Discovery Names David Porter Head of Ad Research
Warner Bros. Discovery said it named David Porter head of ad sales research, data and insights....