In the evaluation of the Company's performance Gordana Kovačević, President of Ericsson Nikola Tesla, pointed out the following:
„Ericsson Nikola Tesla results for Q1 2010 show an increase of orders booked, sales revenues, operating profit and Cash flow from operating activities when compared to Q1 2009. Through a continued focus on risk management, working capital improvements and operational and cost efficiency, we have maintained our strong financial position and increased total cash assets. At the same time we have continued to provide our customers with quality business models and quick and efficient solutions.
During Q1 2010, we achieved a considerable increase in the business volume on export markets. Results for the Domestic market were weaker than expected and show a year-over-year decline which primarily reflects cuts in investments by T-HT and negotiations ongoing throughout the Quarter on the new frame agreement with Tele2. In the internal Ericsson market, sales show a year-over-year increase. The key to continued stable performance of Ericsson Nikola Tesla is a good balance between the given three market segments.
We consider the creation/design of ICT solutions for the industry and society segment, which create new value for the business and social community, of the utmost importance. I am proud that our solution Ericsson Mobile Health was presented to business partners and investors at the largest world exhibition of solutions in the mobile telecommunications sector – Mobile World Congress 2010 in Barcelona, and in the recent Annual General Meeting of Ericsson Shareholders.
Today’s market environment is aware of fierce competition, quick development of new technologies as well as economic turmoil, which all result in numerous risks. We continue to witness strong product and services price pressure as well as cautious in investments and focus on OPEX by our customers. However, we see business opportunities in further growth of data traffic, existing networks transformation into the new generation networks based on IP and technology shifts from 2G to 3G, and toward 4G mobile telecom systems, i.e. LTE. Accordingly, we shall continue to invest into strategic knowledge development, innovation, new markets, customers and solutions for new business segments.
We shall also continue to analyze and to react to all business risks and be oriented to customers and their requirements, offering high-grade ICT solutions, which will enable growth and profitability of our customers, and our company as well“.
