ZTE reported a net profit of RMB 552 million (US$90.69 million) from January to September, with basic earnings per share of RMB 0.16, in line with the company’s earlier forecast. Revenue dropped 10% to RMB 54.66 billion (US$8.98 billion). ZTE posted a quarterly profit after extraordinary items in the July-September period, ending a negative sequence that began in the second-quarter of 2012. ZTE forecasts the company will post a full-year net profit in 2013, after a loss in 2012.
- There was positive operational cash flow reported in Q3, following a sequence of negative cash flow in the July-September periods in 2009 to 2012.
- Capital investment by global telecom operators remained sluggish, with spending focused on 4G networks and the construction of broadband networks, and their ancillary transmission networks.
- In the China market, large-scale TD-LTE network construction will drive investment opportunities for solution providers, while the ongoing implementation of the Broadband China strategy would provide policy support for the development of high-speed broadband infrastructure nationally, ZTE is in a strong position to capitalize on these market opportunities by building our competitiveness and working closely in tandem with the operators.
- Internationally, ZTE continued to focus its efforts in major and globally-leading carriers, and gained strong momentum in key sectors such as enterprise and government ICT solutions, services and mobile devices, while consolidating its share of the telecommunications network infrastructure market.