The Swedish manufacturer of telecommunications equipment Ericsson has promised to intensify efforts to cut costs after reporting higher-than-expected losses for the second quarter of 2017.

According to the company, which leads Market Watch, Ericsson's net loss for the three-month period ended June 30, 2017, was 1.01 billion Swedish kronor (122.3 million US dollars), while a year earlier Ericsson registered a profit of 1, 59 billion kroons. The result was significantly worse than the forecasts of experts: analysts interviewed by FactSet expected losses in the range of 511 million kroons.

Ericsson's revenue also did not reach the forecasts. The company reported a 7% drop in sales, to 49.9 billion kroons ($ 6.03 billion), while the Wall Street estimate provided a result of 50.5 billion kroons, Reuters reports..

Also, Ericsson registered an operating loss of SEK 1.2 billion, while its operating profit was 2.

8 billion kroons a year ago, and experts expected a loss of 244 million kroons.

Ericsson has upheld the forecast for doubling the operating margin by 2018, noting that it will take additional austerity measures to achieve the goal. Efforts to reduce costs will not affect R & D. Nevertheless, the company expects to achieve annual savings of at least 10 billion kroons by the middle of next year. At the same time, Ericsson warned about the preservation of risks that may worsen its financial indicators.