Summary Box: Ericsson says Q4 profits dropped

THE SURPRISE: LM Ericsson shocked the market by reporting fourth-quarter results that were much worse than expected, mainly blaming operators for being cautious because of the global financial turmoil.

ABOUT THE COMPANY: Based in Sweden, it is the world-leading wireless equipment maker in terms of market share.

OTHER FACTORS: Losses in its Sony Ericsson joint venture also hurt the results. Ericsson last year sold its share in Sony Ericsson to Sony, but the deal is being finalized in this quarter.