* Deal assures continued support to Ericsson's fiber access customers
* Operating income negatively impacted by estimated SEK 400 million in Q4 2012
* No significant cash impact
* Ericsson to focus on end-to-end solutions for 4(th) generation IP networks
Ericsson (NASDAQ:ERIC) today announced the sale of its EDA 1500 GPON portfolio
to U.S.-based broadband access systems and software supplier Calix, Inc.
(NYSE:CALX). The deal allows Ericsson to focus on end-to-end solutions for 4th
generation IP and mobile broadband.
The negative impact on operating income of estimated SEK 400 million in the
fourth quarter 2012 will be equally split between cost of sales and operating
expenses, without any significant cash impact. The transaction is subject to the
finalization of transition services agreements and customary closing conditions.
Ericsson's capital assets expected to be included is the Ericsson EDA 1500 GPON
solution and its complementary ONT portfolio. Also included in the agreement is
the transfer of approximately 60 North American employees, as well as the
transition and ongoing support of the acquired products from Ericsson to Calix.
The companies have also signed a global re-seller agreement, effective at the
close of this transaction, that allows the expanded Calix Unified Access
portfolio of systems and software to be sold as Ericsson's preferred fiber
access solution in 180 countries worldwide. This allows Ericsson to continue to
provide fiber and copper access products as part of end-to-end solutions for
fixed and mobile operators.
As Ericsson's preferred global partner for fiber access applications, Calix will
provide maintenance and support for Ericsson's installed fiber access base and
assure that all commitments to existing EDA 1500 GPON customers are held.
Additional details of the transaction were not disclosed.
NOTES TO EDITORS
ABOUT CALIX
Calix (NYSE: CALX) is a global leader in access innovation. Its Unified Access
portfolio of broadband communications access systems and software enables
communications service providers worldwide to be the broadband provider of
choice to their subscribers. For more information, visit the Calix website at
http://www.calix.com/.
FOR FURTHER INFORMATION, PLEASE CONTACT
Ericsson Corporate Public & Media Relations
Phone: +46 10 719 69 92
E-mail: media.relations@ericsson.com
Ericsson Investor Relations
Phone: +46 10 719 00 00
E-mail: investor.relations@ericsson.com
Ericsson discloses the information provided herein pursuant to the Securities
Markets Act and/or the Financial Instruments Trading Act. The information was
submitted for publication on August 22 at 10.02 PM CET.
[HUG#1635717]
