Monday, October 26, 2009

ZTE Posts 42% Annual Growth in its Q3 2009 Revenue

ZTE reported revenue from principal operations of RMB15,136 million (USD 2.216 billion), representing growth of 42.81% as compared to the same period last year, while net profit attributable to the parent company grew 58.18% to RMB 409million (USD 60 million). Basic earnings per share amounted to RMB0.23 (USD 0.03).

The company said it is succeeding in gaining further inroads with multi-national carriers for its LTE, UMTS and GSM products. This success was attributable in large part to leveraging opportunities presented by the need for network construction in emerging markets against the backdrop of an improving global economic environment.

In terms of market development, ZTE reported substantial growth in operating revenue largely attributable to large-scale 3G network construction in the domestic China market.

Internationally, the company said it now holds strong competitive position thanks to its cost advantage, financing resources and customization abilities.

Product-wise, ZTE's carrier network segment reported year-on-year growth of 47.32%, which was driven mainly by revenue generated from sales of the company's 3G network equipment, optical transmission products and data communication products. Revenue from terminal products also grew by 38.67%, which was in line with sales growth for 3G products. Revenue from the Group's telecommunications software systems, services and other products grew by 17.85%, reflecting primarily growth in the sales of fixed terminals.