Chinese vendor ZTE swung to a debut annual loss of 2.84 billion yuan ($457 million) in 2012, as network project delays and falling overseas revenue impacted its bottom line.
The company reported a 2.4% decline in annual revenue to 84.2 billion yuan. While domestic income was stable, revenue from overseas operations fell 4.5%.
ZTE also blamed the annual loss on falling in feature phone sales, delays in some network contracts and a drop in gross profit margin as the company pursued lower-margin contracts in China, Africa and South America.
But ZTE also reported a positive cash flow for the first time in three years. Operating cash flow for the year was 1.87 billion yuan.
The company meanwhile achieved revenue growth in some regions. APAC revenue increased 2.8%. while combined revenue from Europe and the America's increased 1.6%, in what ZTE said was a sign it is gaining ground in the US market.
In a statement, ZTE said it was “well-positioned in 2013” to benefit in the rapid growth in wireless and wireline traffic, and in global demand for smart devices.
“The competitiveness of ZTE’s products will allow the company to deepen our relationship with customers globally,” the company said.