Wednesday, August 21, 2013

ZTE's Revenue Dips 12% as Profits Rise 27%

ZTE’s revenues for the first half of 2013 decreased 11.9% to RMB 37.58 billion while gross profit reached RMB 310 million, a year-on-year increase of 26.6%. Basic earnings per share amounted to RMB 0.09.  The company cited improved gross profit margins and stringent cost controls.

Some highlights:

China:  ZTE reported operating revenue of RMB 18.821 billion in its domestic market in the first half, accounting for 50.1% of overall operating revenue.

Internationally: ZTE reported operating revenue of RMB 18.755 billion from the international market, accounting for 49.9% of overall operating revenue.

Product Categories:  ZTE reported operating revenue of RMB 19.050 billion for carriers’ networks, RMB 12.461 billion for terminals, and RMB 6.065 billion for telecommunications software systems, services and other products.

There was a decline in operating revenue from GSM and UMTS products in the domestic market and GSM handsets and data cards in both the domestic and international markets.

ZTE is now forecasting a net profit of between RMB 500 million and RMB 750 million in the first nine months of 2013, rebounding from a loss in the same period a year earlier.