Mobile telecom equipment maker Ericsson (NASDAQ: ERIC) reported stronger-than-expected third-quarter sales figures Thursday, boosted primarily by high activity levels in North America.
In posting its third consecutive quarter of progress toward reaching its 2020 financial targets, the company saw its net sales jump by 9% year-on-year and 8% since the last quarter.
The mobile telecom provider posted an operating profit of 3.2 billion crowns ($356.5 million U.S.) as compared to a loss of 3.7 billion crowns in the third quarter of 2017.
Ericsson's shares have soared more than 30% year-to-date, underpinned by progress toward meeting its 2020 financial targets and hopes for a 5G-led industry growth cycle.
The company has been voluntarily cooperating since 2013 with an investigation by the Securities and Exchange Commission and, since 2015, with an investigation by the U.S. Department of Justice into Ericsson's compliance with the U.S. FCPA.
“While we cannot comment in detail we can provide the following update on the process. We have identified facts that are relevant to the investigations and these facts have been shared with the authorities. We continue to cooperate with the SEC and the DOJ and are engaged in discussions with them to find a resolution.
“While the length of these discussions cannot be determined, based on the facts that we have shared with the authorities, we believe that the resolution of these matters will likely result in monetary and other measures, the magnitude of which cannot be estimated currently but may be material.”
Shares in Ericsson took on 29 cents, or 3.3%, to $9.03
