- 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 4th 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
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/.
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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.