Stockholm-based mobile telecom equipment maker Ericsson expects recent business wins to lift sales later this year, after missing first-quarter sales and profit forecasts due to continued weak demand in North America and Japan, Reuters said.

“With current visibility, key contracts awarded will gradually impact sales and business mix, mainly in the second half of the year” Ericsson said in a statement on Wednesday.

Analysts have been expecting Ericsson sales to get a boost this year as big carriers in Europe and China spend on high-speed 4G LTE networks to cope with a surge in mobile data traffic, driven by more video use on smartphones, Reuters said.

Earnings before interest and tax were 2.6 billion Swedish crowns (234 million pounds) compared with 2.1 billion in the year-ago quarter, missing a mean forecast of 3.5 billion in a Reuters poll of analysts.

FIRST QUARTER HIGHLIGHTS
• Sales in the quarter were SEK 47.5 (52.0) b. Sales for comparable units, adjusted for currency, decreased -7% YoY and -28% QoQ
• Sales declined YoY, primarily in North America and Japan but partly offset by China, Middle East and Latin America
• Business mix in the quarter was mainly driven by mobile broadband capacity projects. With current visibility, key contracts awarded will gradually impact sales and business mix, mainly in the second half of the year.
• Operating margin improved YoY in all segments to 5.5% (4.0%) mainly driven by mobile broadband capacity sales and lower restructuring charges
• Operating income amounted to SEK 2.6 (2.1) b.
• Cash flow from operating activities was SEK 9.4 b. driven by the payment from Samsung related to the new license agreement as well as reduced trade receivables.