U.S. Markets open in 9 hrs 30 mins

Featured Company News - Ericsson Views Sale of its Power Modules Business; Executes the First Step of its Business Refocusing Strategy

Research Desk Line-up: Westell Technologies Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 23, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Swedish mobile telecom gear maker, Telefonaktiebolaget LM Ericsson (publ) (NASDAQ: ERIC) following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=ERIC. The Company announced on June 21, 2017, that it has signed a definitive agreement with multinational technology and Sketch-to-Scale solutions provider, Flex, to divest Ericsson Power Modules. This agreement is viewed as a step to redefine its business strategy, where the Company plans to focus primarily on its core business. For immediate access to our complimentary reports, including today's coverage, register for free now at:


Discover more of our free reports coverage from other companies within the Communication Equipment industry. Pro-TD has currently selected Westell Technologies, Inc. (NASDAQ: WSTL) for due-diligence and potential coverage as the Company announced on May 24, 2017, its financial results for Q4 FY17 which ended on March 31, 2017. Tune in to our site to register for a free membership, and be among the early birds that get our report on Westell Technologies when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on ERIC; also brushing on WSTL. Go directly to your stock of interest and access today's free coverage at:



The Announcement

Ericsson's power module business was founded in 1977, wherein 1983, the Company named the segment's first onboard DC/DC power module as Ericsson's product of the year. Currently, the unit deals in design and manufacturing of power supply products for information and communications equipment, including radio base stations, switches and routers, and multiple other computing and industrial applications. The power module portfolio of Ericsson includes about 500 board-mounted products, including, DC/DC converters, intermediate bus converters, POL regulators, power interface modules, and board power management supporting products.

Under terms of the agreement, Ericsson's Power Modules business will be on closing, transferred to Flex, which includes Shanghai Ericsson Electronics Corporation, Ltd., a manufacturing site in China, and business assets in Sweden. Post the execution of the transaction, about 300 employees and consultants are expected to be transferred from Ericsson to Flex Power.

Flex Power views this agreement as a step to expand its current collaboration and long-standing partnership with Ericsson while adding the industry-leading Power Module team to Flex. According to Ericsson, the BMR458 is the only advanced bus converter available today to offer active- or droop-current sharing.

The transaction is expected to close in Q3 of 2017 and is subject to customary closing conditions, including regulatory approvals.

Redefined Business Strategy

This offloading of the power modules business comes as the next step under the previously announced business strategy on March 28, 2017. The Company announced major portfolio changes to strengthen its core portfolio, namely: increasing investment in the Networks segment; enabling the global rollout of 4G and establishing a leading position in 5G; and shifting the IoT strategy from a systems-integration-led approach to a platform- and solutions-led strategy to better leverage Company's global scale and industry expertise.

Ericsson stated that owing to its increased focus on software technology development within virtualized core networks and management and monetization software, it will explore strategic opportunities for the IT Cloud Infrastructure hardware business. This agreement with Flex is viewed as the first step under the business divestiture strategy and would enable the Company to constantly innovate and deliver most competitive solutions while building a market-leading position in a fully connected world.

The Company recently reported a $300 million operating loss in Q1 FY17 for its Media business. Ericsson stated that it was viewing strategic opportunities, including the sale of its media solutions business and media services unit. The Company has shifted its focus to the core businesses, including networks, digital services, and the Internet of Things.

Last Close Stock Review

On Thursday, June 22, 2017, the stock closed the trading session at $7.25, climbing 1.68% from its previous closing price of $7.13. A total volume of 3.89 million shares have exchanged hands. Ericsson's stock price surged 3.72% in the last one month, 12.23% in the past three months, and 24.78% in the previous six months. Furthermore, since the start of the year, shares of the Company have rallied 24.36%. The stock has a dividend yield of 1.52% and currently has a market cap of $24.28 billion.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.


The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.


PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.


This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.


For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily