ZTE reports 132% surge in nine month profit, as revenue slump by 10%

ZTE has issued a brief financial statement and says that its profits for the first nine months of this year jumped by 132 per cent over the previous year, although revenues fell.

Net profit came in at RMB552 million (US$90 million) from January to September. Revenue dropped 10 per cent to RMB54.66 billion.

ZTE posted a quarterly profit after extraordinary items in the July-September period, ending a negative sequence that began in Q212. ZTE forecasts the company will post a full-year net profit in 2013, after a loss in 2012.

The positive operational cash flow reported in the third quarter followed a sequence of negative cash flow in the July-September periods in 2009 to 2012.

During the reporting period, ZTE says that capital investment by mobile network operators remained sluggish, with spending focused on 4G networks and the construction of broadband networks, and their ancillary transmission networks. There was also progress in the development of emerging sectors such as cloud computing and the Internet of Things.

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.