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Ericsson (ERIC) - Get Telefonaktiebolaget LM Ericsson Sponsored ADR Class B Report posted a 17% rise in third-quarter earnings.

The Stockholm-based wireless gear company made 6.2 billion Swedish kronor, or 0.39 kronor a share, in the quarter ended Sept. 30. That's up from the year-ago 5.3 billion kronor, or 0.34 kronor a share.

Sales rose 12% from a year ago to 40.8 billion kronor.

"We see continued positive business momentum and accelerating focus on broadband," said CEO Carl-Henric Svanberg. "For billions of people mobile broadband will be the way to reach high-speed connectivity and access to the Internet. This will cause a significant increase in voice and data traffic in the world's networks. Traffic in mobile networks is expected to quadruple in the next five years and there is even stronger growth expected in fixed broadband."

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The news comes as the company continues to work on its integration of the recently acquired Marconi telecom assets. Ericsson struggled with its margins last quarter as a result of that effort, which will lead to the firing of 1,600 workers. But the company indicated the process is going more smoothly now, with margins holding steady.

Gross margin, excluding restructuring charges, decreased slightly sequentially to 41.8% from 42%. That number was 45.2% a year ago.

The operating margin increased sequentially to 21.5% from from 18.7%, in line with last year's 21.6%.

Days sales outstanding were 105 days, up from 81 days in 2005. The sequential increase is driven by the high proportion of large projects under construction and a higher proportion of sales in markets with longer payment terms, Ericsson said. Inventories, including work in progress, rose and inventory turnover was basically stable.