ZTE boosts quarterly earnings 40%
April 28, 2010
telecomasia.net
Chinese vendor ZTE has boosted first quarter earnings by nearly 40%, helped by higher handset sales and a tax rebate.
The Shenzhen-based supplier reported a net profit of 109.86 million yuan ($16.1m) in first the three months, up 39.7% from the same period last year. Sales rose 13.6% to 13.26 billion yuan.
The company reported non-operating income of 225 million yuan, up 92%, as a result of a higher VAT tax rebate on software products.
ZTE said investment by Chinese carriers in mobile and optical gear in the quarter was “stable.”
However, the networks equipment segment grew just 0.9% compared with the same period last year.
The terminal segment reported sales growth of 41.8% year-on-year, thanks to the growth in high-end 3G devices, while revenue from telecom software and services increased by 40.8%, mostly a result of demand from enterprises.
ZTE did not offer any guidance, but noted that the impact of the financial crisis on foreign sales had waned, presenting the firm “with more opportunities as some equipment manufacturers left the mainstream market.”
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