STOCKHOLM, July 12, 2024 /PRNewswire/ -- Strategic highlights – taking proactive action in a challenging market environment  Delivering on network technology leadership strategy; externally recognized as 5G leader for 4th consecutive year.   Further progress to build out Global Network Platform for network APIs; two additional partnerships in Q2.   New 5G patent licensing agreement signed; on track to deliver the SEK 12-13 b. IPR revenue target for 2024.  Financial highlights – strong gross margin expansion, partly offset by targeted R&D investments    Sales declined -7%* YoY, but market area North America grew by 14%*. Reported sales were SEK 59.8 (64.4) b.   Adjusted[1] gross income increased to SEK 26.3 (24.7) b. driven by strong gross margin expansion. Reported gross income was SEK 25.8 (24.1) b.   Adjusted[1] gross margin was 43.9% (38.3%) supported by higher IPR licensing revenue and cost actions. Networks adjusted gross margin was 46.1% (39.3%). Reported gross margin was 43.1% (37.4%).   Adjusted[1] EBITA was SEK 4.1 (3.7) b. with a 6.8% (5.7%) margin, with higher gross income partly offset by increased R&D investments in Networks for technology leadership. EBITA was SEK 2.4 (0.5) b.    Net income (loss) was SEK -11.0 (-0.6) b., including a SEK -11.4 b. impairment impact. EPS diluted was SEK -3.34 (-0.21).   Free cash flow before M&A was SEK 7.6 (-5.0) b. benefiting from a strong improvement in working capital.  Börje Ekholm, President and CEO, said: "In Q2, we maintained our leading market position, returned to growth in North America, and delivered strong gross margin expansion and free cash flow. We remained focused on matters in our control, to optimize our business amid a challenging market environment, with industry investment levels unsustainably low.   Vonage remains foundational to build out a global platform for network APIs. This is critical for the digitalization of enterprises and society, and will drive future growth in the telecoms industry. We recorded an impairment charge in Q2, as market growth in the current business has slowed, and we must now refocus on improving performance.   Our results highlight our competitiveness, and we will continue to take proactive steps to position the business for longer-term success. We expect market conditions to remain challenging this year, as the pace of India investments slow, however our sales will benefit during the second half from contract deliveries in North America."  SEK b. Q2 2024 Q2 2023 YoY change Q1 2024 QoQ change Jan-Jun 2024 Jan-Jun 2023 YoY change Net sales 59.848 64.444 -7 % 53.325 12 % 113.173 126.997 -11 %  Organic sales growth[2]  - - -7 % - - - - -10 %