(Telecompaper) Ericsson reported improving margins and profits in the third quarter, as its efficiency programme helped offset weak sales. Revenues increased 3 percent year-on-year to SEK 59.2 billion, but were down 9 percent on an organic basis due to lower sales in Networks. This was partly offset by sales growth in Professional Services. A higher share of services in the revenue mix led to a drop in the adjust gross margin, to 34.5 percent from 35.5 a year ago. The operating margin, excluding restructuring costs, improved though, to 10 percent from 7 percent a year earlier, thanks to lower costs. Ericsson said its Network Rollout business, within Global Services, also reached breakeven. Net profit rose to SEK 3.1 billion from SEK 2.6 billion in Q3 2014, and operating cash flow returned to a positive SEK 1.6 billion after a negative SEK 1.4 billion a year ago.