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ERNT - The business results
The business results of the joint stock company Ericsson Nikola Tesla in the first nine months 2006

As we have emphasized in previous reports, the gross margin is lower compared to last year, due to strong competition, price demand, investments into new projects and customers but also due to changes in product mix.
Despite the lower gross margin level, the operating profit considerably increased (45,4%), mainly due to lower provisions for doubtful receivables as well as income due to insurance coverage compensating for the losses in the fire incident last year. The share of selling, general and administrative expenses in total sales revenues is lower compared to the same period last year as a result of the cost-efficiency program that is carried out in the company.
The financial net is lower, due to lower interest rates and to lower yield on assets invested in investment funds.
The profit before tax is higher by 29,1% compared to the same period last year and it amounts to 176,4 MHRK.
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