PRE-MARKET VOLUME SPIKE: Ericsson (ERIC)

Posted in pre-market 
June 27th, 2008

LM Ericsson (NASDAQ: ERIC) is seeing a downward price move on a rather large volume surge this morning.

The Sweden-based handset maker said that net sales and income before taxes in the second quarter of 2008 are still being negatively affected by moderating demand of mid-to-high end mobile phones, in combination with a delay of new products shipped during the quarter.

It also noted that the Sony Ericsson venture plans to ship approximately 24 million phones during the second quarter of 2008 with an estimated average selling price of EUR 115, which will lead to lower gross margin declines on both an annual and quarterly basis.  Net income before taxes is now estimated to be about break-even.

As of 7:50 AM EST, we have already seen over 500,000 shares trade hands.  Its close of $10.86 yesterday is looking more like $10.18 in the early trading.

Jon Ogg
June 27, 2008

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