Ericsson posted a 2% drop in second-quarter profits as it struggled to integrate the recent acquisition of Marconi, an Associated Press report said.
The report said the Swedish company's net profit was 5.71 billion kronor ($781 million), down from 5.84 billion kronor ($767 million) in the second quarter of 2005.
Earnings were hit by an amortization charge of 400 million kronor ($55 million) related to Britain-based Marconi, which Ericsson bought for $2.1 billion in January, the report said.
Sales rose 15% to 44.2 billion kronor ($6.04 billion) from 38.4 billion kronor in the year-ago period.
The profits beat expectations, but sales came in slightly lower than analysts had forecast.
Ericsson, the world's No. 1 supplier of equipment for mobile networks, said it expected to maintain its dominant position despite consolidation among competitors in the industry, the report said.