Sony Ericsson swings to a profit of 21 mn euros | business | Hindustan Times
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Sony Ericsson swings to a profit of 21 mn euros

business Updated: Apr 16, 2010 17:40 IST
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Mobile phone maker Sony Ericsson on Friday posted a profit of 21 million euros ($ 28.4 million) for January-March on the back of new product launches and cost savings programmes.

The company had a net loss of 293 million euros in the same period last year, Sony Ericsson said in a statement.

"We are pleased to see the positive impact of both the launch of new products and the business transformation programme improving the company's results," Sony Ericsson President Bert Nordberg said.

Nordberg further said that the company's new Xperia X10 and Vivaz products have been well received by global customers.

The profit came despite the company saw its cellphone sales dropping by 28 per cent from the year-ago period to 10.5 million in January-March quarter of 2010.

Moreover, Sony Ericsson's overall sales for the quarter also decreased by 19 per cent from year-ago period to 1.4 billion euros in first quarter of 2010.

While the cellphone maker's average selling price (ASP) rose 12 per cent both sequentially and year-on-year to 134 euro "due to good sell through of existing models, new flagship phones starting to ship at the end of the quarter and a positive currency effect."

Sony Ericsson, a 50:50 joint venture by Japan's Sony and Sweden's Ericsson, said its gross margin climbed by 31 per cent in the quarter under review from 8 per cent in the first quarter of 2009.

"Gross margin rose both sequentially and year-on-year, reflecting a more favourable product mix and the benefit of cost of sales improvements in the past year," the company said.

In a separate statement, Sony Ericsson said it has appointed William 'Bill' A Glaser, Jr, as Chief Financial Officer of the company effective from Friday.

Bill Glaser has over 20 years of experience working in Sony's diverse electronics, game and entertainment businesses in the US, UK and Japan.