Global telecom equipment maker Ericsson has reported that its net income tripled in the first quarter of 2011.
Swedish company’s net income was at 4.1 billion Swedish kronor or $672 million in the first quarter up from 1.3 billion kronor in the same quarter last year. The three-fold rise in the net income is being attributed to a rise in demand for mobile broadband equipment across the world.
The company also revealed that the first quarter sales rose to 53 billion kronor from 45.11 billion kronor one year ago. Sales in the company’s network equipment department increased by 35 percent thanks to the rise in demand for mobile broadband equipment in India, US, Japan, South Korea and Russia.
"Group sales in the quarter increased by 17% year-over-year driven by continued strong demand for mobile broadband and especially for the multi-standard radio base station," Ericsson President and CEO Hans Vestberg said in a statement.
Meanwhile, the company, which recently got new orders from India’s Aircel and Vodafone Essar, said that its supply chain might be affected owing the tsunami and earthquake that ravaged Japan recently.
"Our global supply chain of components is partly dependent on Japan and we estimate delays in delivery of certain products. Our best estimate is that we will be able to deliver the majority of these volumes before the end of third quarter 2011" he added (opens in new tab).