Boston, MA 05/06/2014 (wallstreetpr) – Plans to expand into mobile device chips has seen the world largest maker of wireless equipment appoint Robert Puskaric as its new head for the wireless modem business. The unit was created when STMicroelectronics NV was dissolved last year. Puskaric replaces Mats Norin who headed the integration of the unit into Ericsson (ADR) (NASDAQ:ERIC).
Ericson Reviving its Chip Business
Ericsson (ADR) (NASDAQ:ERIC) is currently trying to revive its chip business that has been silent for some time as part of a larger plan to expand beyond network gear industry. The section is currently grappling with reduced sales.Ericsson has already absorbed 1,800 of the chip venture’s workers that will help in the development of the new technology after the split with STMicroelectronics.
Ericsson’s modem unit develops chips that are normally used in mobile devices to connect with the internet. The first product was initially released in the fourth quarter with the company currently working with a tier one smartphone company, to have it integrated into customer’s devices. The business segment has not yet picked up in the market with the company projecting improved sales from the second quarter.
The appointment of Robert Puskaric follows the appointment of Rima Qureshi as Ericsson (ADR) (NASDAQ:ERIC) strategy officer where he is expected to drive mergers and acquisitions strategies. Qureshi will also serve as the chairman of the Business Unit Modems. Recent appointments are expected to drive growth in the company, having reported earnings of 14 cents for the first quarter that missed estimates by a penny.
Lower than expected results for the quarter was mainly as a result of weaknesses being experienced in the business segment of Networks and Global Services.
Ericsson researchers Recognized for 4G Innovations
The appointments come as Ericsson (ADR) (NASDAQ:ERIC) researchers are being nominated for a prestigious European Inventor Award for LTE. This is in recognition to the company’s effort in ensuring it becomes a leader in the 4G innovation by the European Patent Office. Eight of the company’s researchers have been nominated for the award.
