Monday, April 26, 2010

ZTE Reports Q1 Revenue of US$1.94 Billion, up 14% YoY

ZTE Corporation reported Q1 2010 revenue of RMB 13.26 billion (about US$1.94 billion, up 13.6% from RMB 11.67 billion for the same period last year. The Group reported a net profit of RMB 109.86 million (US$16 million) in the three months ended 31 March 2010, up 39.68% from RMB 78.66 million in the same period last year.

The company observed that investments in telecommunications equipment in the domestic market remained stable during the quarter, with mobile network construction and optical communication equipment accounting for a major share of the capital expenditure of carriers. In the international market, the impact of the financial crisis was waning, and the Group was presented with more opportunities as some equipment manufacturers left the mainstream market.

By product category, ZTE's business segment of carriers' networks reported 0.9% growth compared with the same period last year, driven mainly by revenue from the sales of optical communication products and wireline switch and access products. The terminal segment reported sales growth of 41.8% year-on-year, attributable mainly to the rapid growth in the sales of high-end products featuring mainly 3G handsets. Revenue from telecommunications software systems, services and other products also grew by 40.8%, reflecting mainly growth in revenue from enterprise network products and servicing products.