ZTE posts 132% Rise in Net Profit

ZTE Corporation (ZTE) has reported a nine-month net profit, which increased 132% from a year earlier, as the company executed its operational strategy to improve cash flow and raise profitability.
 
Net profit attributable to shareholders was RMB 552 million from January to September, with basic earnings per share of RMB 0.16, in line with the company’s earlier forecast. Revenue dropped 10% to RMB 54.66 billion. ZTE posted a quarterly profit after extraordinary items in the July-September period, ending a negative sequence that began in the second-quarter of 2012. ZTE forecasts the company will post a full-year net profit in 2013, after a loss in 2012.
 
During the reporting period, capital investment by operators in the global telecommunications industry 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.
 
In the China market, large-scale TD-LTE network construction will drive investment opportunities for solution providers, while the ongoing implementation of the Broadband China strategy would provide policy support for the development of high-speed broadband infrastructure nationally, ZTE is in a strong position to capitalize on these market opportunities by building our competitiveness and working closely in tandem with the operators.