The year 2009 proved to be a dampener for handset major, Sony Ericsson with the company witnessing revenues dip by 39.6% to euro 6.78 billion from euro 11.24 billion recorded last year. Shipments also declined by 40.8% to reach 57.1 million from 96.6 million.

The average selling price increased euro 116 last year to euro 119 by the end of 2009. Net loss for the company surged from euro 73 million last year to euro 836 million at the end of 2009.

“The refreshed portfolio, coupled with the business transformation programme has started to positively impact our financial results. Continued cost saving activities and resource realignment are necessary in order to build a leaner, more efficient organisation capable of meeting the demands of the changing competitive landscape,” says Bert Nordberg, President, Sony Ericsson.

“We will continue to focus on returning the company to profitability by establishing Sony Ericsson as the communication entertainment brand based on an exciting portfolio of mid- and high-end products, such as our recently announced Android-based phone, the XPERIA™ X10. 2010 will still be challenging as the full benefit of cost improvements will not impact results until the second half of the year, however we are confident that our business is on the right track,” adds Nordberg.

For the quarter ended December 31, 2009 the company recorded revenues of euro 1.75 billion. When compared to last year’s figures during corresponding quarter, the revenues are a decline of 39.94%. Shipments too slid from 24.2 million last year to 14.6 million by the end of December 31, 2009.

But when compared on a sequential basis the figures are seen on a increasing trend. Revenues last quarter were euro 1.61 billion. Shipments last quarter were 14.1 million.

The company however had to incur an increased restructuring charge up from euro 2 million last quarter to euro 150 million at the end of December 31, 2009.

For Q4 09 the average selling price was euro 120 as compared to euro 114 last quarter and euro 121 during corresponding quarter last year. The company managed to narrow down the loss from euro 187 million last year to euro 167 million at end of Q4 09. Last quarter the company’s net loss was 164 million.

The company’s cash reserves stand at euro 620 million.

For the new year, Sony Ericsson expects a slight growth in global handset market sales.