Boston, MA 04/15/2014 (wallstreetpr) – Ericsson (ADR) (NASDAQ:ERIC) announced on Monday that its strategy head, who completed five years in the company, has resigned and is due to exit it in August.
Gilstrap Resigns
As per the published statement, Douglas Gilstrap, vice president and global head of strategy, will depart on August 1. Gilstrap had joined the company in 2009 and has been involved in overseeing key responsibilities, which includes, dissolution of ST-Ericsson joint venture and amalgamation its modem business. As per the reports, the manufacturer is now looking for a personnel to replace Gilstrap.
Ericsson (ADR) (NASDAQ:ERIC)’s chief executive officer, Hans Vestberg, said in a statement that Gilstrap has been “instrumental” in building the company’s strategy as well as “strengthening” its position across the entire business segments. ST-Ericsson, a chip venture with STMicroelectronics NC, was dissolved in 2013 and Ericsson approved to acquire 1,800 of the former’s workers in order to progress in developing modem technology. The company had acquired Telcordia two years back for $1.15 billion so as to strengthen its business support and operations market then. Telcordia acquisition came post the takeover of Redback Networks in 2007 by the company in consideration of $1.66 billion.
RBC’s Positive Outlook
Last Week, the company had received an upbeat rating from the analyst at RBC Capital. The analysts are positive that the company can grow its revenue in the range of 2-5% in the forthcoming period. According to the research firm, since the company currently holds 40% of LTE market share across the globe, therefore, it is in a position to derive benefit from this segment. Moreover, the firm, believes that it can benefit from upgrades in Europe as well as fresh contracts in Japan while it can also increase its dividend. RBC has an ‘outperform’ rating on the stock right now. Earlier, ‘Barron’ had also highlighted that Ericsson (ADR) (NASDAQ:ERIC) can increase the value of its products and services and could be acquired by Google Inc. (NASDAQ:GOOG).
