Mobile phone giant Ericsson saw sales fall in quarter two after its supply chain was affected by component shortages.
The Swedish firm revealed an eight per cent year-on-year decline in its latest figures, citing shortages of parts that equated to losses of around £354 million.
Sales in its Global Services division were flat, but the company did see a five per cent increase in its Professional Services.
Net profit for the three months to June 30 was SEK1.88 billion (£166.7 million), up from SEK831 million a year earlier.
"Sales were impacted by continued industry component shortages and supply chain bottlenecks. We estimate that this had a negative impact on our sales in the quarter," said Hans Vestberg, president and chief executive officer of Ericsson.
The company has suffered from weak demand in several markets, as operators cut investment during the economic downturn, and from price pressure in a fiercely competitive market.
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