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Sony Ericsson back on track with reported positive earnings

16 April 2010 by
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Technical details:
• Ericsson R380
• Ericsson R520
• Ericsson R600
• Ericsson T29s
• Ericsson T39
• Ericsson T60d
• Sony Xperia A
• Sony Xperia Acro S
• Sony Xperia Advance
• Sony Xperia C
• Sony Xperia E
• Sony Xperia E Dual
• Sony Xperia E1
• Sony Xperia E1 Dual
• Sony Xperia Ion LT28at
• Sony Xperia J
• Sony Xperia L
• Sony Xperia M2
• Sony Xperia Miro
• Sony Xperia Neo L
• Sony Xperia P
• Sony Xperia S
• Sony Xperia SL
• Sony Xperia Sola
• Sony Xperia SP
• Sony Xperia SX
• Sony Xperia T
• Sony Xperia T2 Ultra
• Sony Xperia Tipo
• Sony Xperia Tipo Dual
• Sony Xperia TL
• Sony Xperia TX
• Sony Xperia U
• Sony Xperia V
• Sony Xperia VL
• Sony Xperia Z
• Sony Xperia Z Ultra
• Sony Xperia Z1
• Sony Xperia Z1 Compact
• Sony Xperia Z2
• Sony Xperia ZL
• Sony Xperia ZQ
• Sony Xperia ZR
Sony Ericsson today reported positive figures for the first quarter of 2010.

It is no secret that Sony Ericsson have had problems making a positive income for the last couple of years. The company started on a restructuring program back in 2008 which will be completed by the second half of 2010. The goal of the transformation programme was to reduce annual operating expenses by Euro 800 million. And since 2008, 3,150 people has left the company reaching 8,450 by the end of March 2010.

Sony Ericsson Financial reportThe number of units shipped was reduced from 14.5 million during Q1 2009 to 10.5 million in Q1 2010. Average selling price per unit rose from 120 to 134 Euro. Income before taxes in Q1 2009 was -370 million and ended on 18 million for Q1 2010.

It seems like Sony Ericsson are focusing more on high-end devices as the average selling price rose since last year. The two recently launched high-end devices Vivaz and X10 have just reached the market so the sales figures for those models are most likely not countable until Q2.

 

 Q12009Q4 2009Q1 2010
Number of units shipped (million)14.514.610.5
Sales (Euro m.)1,7361,7501,405
Gross margin (%)8%23%31%
Operating income (Euro m.)-369-18120
Operating margin (%)-21%-10%1%
Restructuring charges (Euro m.)121503
Operating income excl. restructuring charges (Euro m.)-357-3223
Operating margin excl. restructuring charges (%)-21%-2%2%
Income before taxes (IBT) (Euro m.)-370-19018
IBT excl. restructuring charges (Euro m.)-358-4021
Net income (Euro m.)-293-16721
Average selling price (Euro)120120134




Comments
On 24 May 04:25 pipo wrote
'to MOl: I didn't change to SE on my last phone. The build quality of the K550i (my last SE) was so terrible that I swore it would be my last.

In fact I did turn to Samsung. And bought their most hyped but equally most hated Samsung Omnia 1 (SGH-i900). Which, as it turned out, is after the right firmware upgrade the best Windows Mobile device that I ever had.

It's loud. Takes terrific pictures (without tweaking). You can use the LED-flash as a torchlight (like on many SE phones). There's software that automagically records phone-calls (in-callrecording), even when the conversation is on a bluetooth headset. Unlike SE where you have to press some keys to achieve this. There's some amazing turn-by-turn navigation. Great games. And it's fast (enough). Problem is I also played with it's descendant the Omnia 2 (i8000) and that one sucks big time. So again this is going to be my last Samsung phone either.

I've got no idea what my next one will be. But I doubt it'll be an SE.
On 22 May 13:50 mol wrote
go on SE i'm behind u , i've changed my cellphone 6 times, and all of them are SE
On 22 May 13:28 SE wrote
1) As long as these jobs are in china I don't care. Europe has had enough to suffer (and more to come of you see what EU-politicians have in store for us, with regards to taxes, for the next couple of years)

2) If their phones where of better build quality (like they used to ben when it was Ericsson) then they wouldn't be in this mess!

3) If they shortened the time between anouncing a phone and actual release then they wouldn't be in this mess!

4) If they'd listened or at least looked at what ppl say (in this and other SE-devoted forums) about their phones (especially the things that can be improved) then they wouldn't be in this mess.

I'd say, why don't we just dutch our SE-0phones and buy Samsung. (As if that's any better!)
The problem is that the other phone manufactors aren't any better. Samsung (the biggest party) doiesn't listen to their customers either. They make the same chinese crap as all the other do. So in time they'll loose customers.

Oh Well. At least SE isn't going bancrupt (for now). In that respect. Well done, SE.
On 14 May 12:20 cc wrote
They sell less mobile currently but most of mobile with problem and unable to solve.... Also make more people jobless. This is not a great company...
On 25 Apr 09:36 jan wrote
but again they treat there workers like the are like nothing..Its not great making profit because of bad behaver they cut of about 4000 workers threre incom.Not because of great phones
On 23 Apr 02:45 Prom1 wrote
Great job :SE:!!
- The huge restructuring costs last quarter finally paid off - time to become publicly traded with dividends to sweet the financial coffers for the future (with largest stake holders being Sony & Ericsson, of course).

Something in the math doesn't look right at first glance though:
Income before taxes (IBT) (Euro m.) -370 -190 18
IBT excl. restructuring charges (Euro m.) -358 -40 21
Net income (Euro m.) -293 -167 21
how does NET income become greater than income before taxes - without a cash inflow by investment which is not reported in the short above?

Am I missing something?!
On 18 Apr 10:23 razec wrote
Well done SE, keep up the nice work
On 17 Apr 18:07 jan wrote
They sell less mobiles but they make more people out of jobb thats wy they making profit....
On 17 Apr 15:49 korbindallis wrote
such good news :)
never doubted :se:
On 16 Apr 17:13 dancingfate wrote
Great job Sony Ericsson....

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