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111 ERICSSON First quarter report 2021 Stockholm , April 21 , 2021 First quarter highlights Sales adjusted for comparable units and currency grew by 10 % YoY despite SEK -1.6 b . lower IPR licensing revenues YoY and four of the five market areas showed double - digit growth . Reported sales were SEK 49.8 ( 49.8 ) b . Gross margin excluding restructuring charges improved to 42.9 % ( 40.4 % ) with margin improvements in all segments despite lower IPR licensing revenues . Reported gross margin improved to 42.8 % ( 39.8 % ) . EBIT excluding restructuring charges improved to SEK 5.3 b . ( 10.7 % ) from SEK 4.6 b . ( 9.3 % ) YoY driven by Networks , more than offsetting the negative impact from lower IPR licensing revenues . Reported EBIT was SEK 5.3 ( 4.3 ) b . Networks sales increased by 15 % YoY , adjusted for comparable units and currency , driven by market share gains . Networks EBIT margin excluding restructuring charges was 19.9 % ( 16.8 % ) . Reported net income was SEK 3.2 ( 2.3 ) b . Free cash flow before M & A was SEK 1.6 ( 2.3 ) b . mainly impacted by lower incoming IPR payments . Net cash per March 31 , 2021 was SEK 43.0 ( 38.4 ) b . SEK b . Net sales Sales growth adj . for comparable units and currency 1 Gross margin 1 EBIT EBIT margin 1 Net income EPS diluted , SEK Q1 Q1 ΥΟΥ Q4 QoQ 2021 2020 change 49.8 49.8 0 % 10 % 2020 69.6 change -28 % 42.8 % 39.8 % 40.6 % 5.3 4.3 22 % 11.0 -52 % 10.6 % 8.7 % 15.8 % 3.2 2.3 39 % 7.2 -56 % 0.96 0.65 48 % 2.26 -58 % Measures excl . restructuring charges and other items affecting comparability 1 Gross margin excluding restructuring charges 42.9 % 40.4 % 40.6 % EBIT excluding restructuring charges 5.3 4.6 16 % 11.0 -51 % EBIT margin excluding restructuring charges 10.7 % 9.3 % 15.8 % Free cash flow before M & A 1.6 2.3 -33 % 12.8 -88 % Net cash , end of period 43.0 38.4 12 % 41.9 3 % 1 Non - IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statements . 1 Ericsson First quarter report 2021