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SonyEricsson Posts Second Straight Quarterly Profit

7/16/2010 11:39:23 AM Eastern

Stockholm -- Cellphone maker SonyEricsson posted its second consecutive quarterly profit in its fiscal second quarter following seven consecutive quarterly losses.

Net income hit 12 million euros, down sequentially from 21 million in the first quarter but reversing a year-ago 213 million euro loss. Operating income rose sequentially to 36 million euros from the first quarter's 20 million and compared favorably to a 274 million euro operating loss in the year-ago period.

Second-quarter unit sales were up 5 percent sequentially but down 25 percent year-over-year to 11 million. An increase in average selling prices to 160 euros from the first quarter's 122 and the year-ago quarter's 120 helped push up revenue 25 percent sequentially and 4 percent year-over-year and to 1.76 billion euros.

ASPs were up 19 percent sequentially and 31 percent year-on-year in part because of a stepped-up smartphone mix and changing currency exchange rates, the company said. Unit market share for the quarter remained flat at an estimated 4 percent, the company added.

A restructuring program that started in mid-2008 is in its final stages and on target to reduce annual operating expenses by 880 million euros by the end of the year, the company also said. The program so far has reduced the company's global workforce by about 4,000 people to a total 7,800 on June 30. Total restructuring charges taken to date are 374 million euros.