Ericsson (ERIC) Q1 2020 Earnings Call Transcript

Ericsson (ERIC) Q1 2020 Earnings Call Transcript

We have to recognize that with COVID-19, we truly live in an unprecedented time.. We're working to support our customers to ensure that they keep the critical national infrastructures around the globe up and running during these unprecedented times.. We continue to push forward on our focused strategy, and we are determined to get through these difficult times as a much stronger company, more agile and well positioned in the market.. We delivered a solid Q1, which is seen across our segments, and we're delivering a strong gross margin and good cash flow.. Operating leverage compensated for an increased portion of strategic contracts.. And in the quarter, we have seen very limited impact from COVID-19.. We've seen a decline in sales for Digital Services.. We can deliver gross margin of 40% for Digital Services, and that's on the back of growing software sales, and that's also after we have taken a provision for critical contracts of SEK200 million.. Our industry has shown resilience even during this pandemic, but I think it is reasonable to expect some impact as well.. We have signed 86 commercial 5G contracts and delivered 29 live networks, and now we have actually 31 networks live.. So