Friday, April 26, 2013

ZTE Reports Improved Q1 Margins and Profitability

ZTE reported Q1 revenue of RMB18.09 billion, down 2.8% compared to a year ago. However, the company credited stringent efforts in cost control for improving its margins.  Net profit attributable to shareholders of the parent company rose to RMB205 million in the first quarter, and basic earnings per share increased to RMB0.06. Operating cash flow in the first quarter significantly improved compared to a year earlier.  This marks the second continuous quarter of improving margins.

Since the second half of 2012, ZTE said it has stringently enforced measures to focus resources on key products and markets, target higher-margin contracts, improve cash flow management and reduce costs.  The company achieved combined savings of RMB 350 million in selling, administration and research costs in the first quarter compared with a year earlier.